In water-based transport generally, fuel costs are low and environmental pollution is lower than in transport by road, rail, or air. The waterway is naturally available, which has to be ‘trained’, maintained, and upgraded. Water-based transport is especially effective when the source and destination are waterfront locations. Transport based on inland waterways (or inland water transport, IWT)—rivers, canals, lakes, etc. and also overlapping coastal shipping in tidal rivers—constitutes 20% of the transport sector in Germany (WB 2005) and 32% in Bangladesh (Rahman 1994). In India it has a paltry share of 0.15% (Raghuram 2004). IWT has received large funding in both the ninth and tenth five-year plans but has not been able to effectively utilize it (Planning Commission 2001). It continues to be a significant focus area for investments, such as a Rs 300 crore investment planned by the Asian Development Bank (ADB) (Indian Infrastructure 2004). It is an important component of the National Maritime Development Project (NMDP). This policy brief assesses the viability of IWT in India. The detailed report (Rangaraj and Raghuram 2005a) is available online.