Railways to drive growth as India targets 3,000 million tonnes freight capacity by 2030
New Delhi, April 9
Railways are set to play a key role in driving India's economic growth as the country targets a freight capacity of 3,000 million tonnes by 2030, a report has said.
As per the ASSOCHAM-AESCLA report, railways currently account for up to 30 per cent of freight movement, indicating substantial growth potential.
It highlighted that the sector is undergoing rapid transformation, driven by initiatives such as Dedicated Freight Corridors and near-complete electrification, which are improving efficiency and sustainability.
The report pointed out the need to increase rail's modal share through capacity expansion, further development of Dedicated Freight Corridors, greater private sector participation, and improved last-mile connectivity.
It also underlined the importance of reducing logistics costs -- currently at around 7.97 per cent of GDP -- to enhance India's global competitiveness.
Dr. Surendra Kumar Ahirwar, Executive Director (Traffic Commercial), Railway Board, said Indian Railways is undergoing accelerated transformation and evolving into a future-ready system. He noted that the railways are not only facilitating economic growth but also contributing to it through a vast manufacturing and service ecosystem.
He highlighted major drivers of this transformation, including improved safety standards, rapid capacity expansion, continuous technology upgradation, adoption of AI, and a shift towards end-to-end logistics solutions with strong first and last-mile connectivity. He also pointed to the need to reduce the cost of container production.
Ahirwar further said that Indian Railways has added nearly 31,000 km of track over the past decade, reflecting a significant pace of infrastructure expansion.
Sanjay Bajpai, Advisor, Railways Council, ASSOCHAM, said Indian Railways is transitioning from a traditional transporter to a key driver of logistics efficiency, industrial competitiveness and economic expansion. He emphasised the need for modern terminals, improved port connectivity, and seamless multimodal integration.
He added that with freight loading already exceeding 1.6 billion tonnes annually, the sector is poised for strong growth, supported by infrastructure development, policy reforms, and digitalisation.
— IANS
Reader Comments
As someone who works in supply chain, the 7.97% logistics cost is a huge burden. Shifting more freight to rail from road is essential for sustainability and cost efficiency. The mention of AI and digitalisation is promising, but execution is key. Let's hope the plans don't just stay on paper.
Good vision, but what about passenger trains? Often freight trains get priority and our trains are delayed for hours. Growth is important, but the common citizen's travel experience shouldn't be ignored. Hope there's a balanced approach.
Electrification and DFCs are the right steps. This will reduce our fuel import bill and carbon footprint significantly. Private sector participation can bring in efficiency, but we must ensure it doesn't lead to higher costs for end users. Jai Hind!
The target is ambitious but achievable if the infrastructure keeps pace. The real challenge is the "last-mile" they mentioned. Trucks from the goods shed to the factory gate is where most delays and costs add up. Need seamless integration with road transport.
Interesting read. The scale of ambition is massive - 3000 million tonnes. The focus on technology like AI for logistics optimization is crucial. Hope this transformation also creates a lot of skilled jobs in manufacturing and tech for the railway ecosystem.
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