Daijiworld Media Network - New Delhi
New Delhi, Apr 9: India’s rail network is set to become a major engine of economic growth, with freight capacity projected to reach 3,000 million tonnes by 2030, according to a joint report by ASSOCHAM and AESCLA.
Currently handling around 30% of the country’s freight movement, Indian Railways has significant room for expansion. The report highlights that the sector is undergoing a rapid transformation, driven by initiatives such as the Dedicated Freight Corridors and near-total electrification, both of which are boosting efficiency and sustainability.
To further increase rail’s share in freight transport, the report recommends expanding capacity, accelerating the development of freight corridors, encouraging private sector participation, and strengthening last-mile connectivity.
A key focus area is reducing India’s logistics costs, which currently stand at about 7.97% of GDP. Lowering these costs is seen as essential for improving the country’s competitiveness in global markets.
Surendra Kumar Ahirwar, Executive Director (Traffic Commercial) at the Railway Board, noted that Indian Railways is evolving into a future-ready system. He emphasised that beyond enabling economic activity, the railways are actively contributing to growth through an extensive manufacturing and services ecosystem.
He identified several drivers of this transformation, including enhanced safety measures, rapid infrastructure expansion, adoption of advanced technologies like artificial intelligence, and a shift toward integrated end-to-end logistics solutions with strong first- and last-mile connectivity. He also pointed to the need for reducing container manufacturing costs.
Ahirwar added that nearly 31,000 km of railway track has been added over the past decade, reflecting a significant pace of infrastructure development.
Meanwhile, Sanjay Bajpai highlighted that Indian Railways is transitioning from a conventional transporter into a critical pillar of logistics efficiency and industrial growth. He stressed the importance of modern cargo terminals, better port connectivity, and seamless multimodal integration.
With freight loading already surpassing 1.6 billion tonnes annually, the sector is well-positioned for sustained growth, supported by ongoing infrastructure investments, policy reforms, and digital transformation initiatives.