Coastal shipping could save India INR 400bn ($5.9bn) per year, government officials have claimed.
The Business Standard said this figure would come from shipping six commodities: coal, steel, cement, fertiliser, grains and containers.
The state is offering an incentive of INR 1 per kilometre for every tonne of cargo carried.
Cars and marble will also be included in the scheme.
India wants to shift cargo from road and rail to take advantage of the coastline and inland waterways.