New Delhi, April 09: Indian Railways is set to play a pivotal role in driving the country’s economic growth, with a target to achieve freight capacity of 3,000 million tonnes by 2030, according to a joint report by ASSOCHAM and the Automotive and Equipment Skill Council (AESCLA).
Currently accounting for around 30% of freight movement, the rail sector offers significant headroom for expansion. The report highlights that ongoing initiatives such as Dedicated Freight Corridors (DFCs) and near-complete electrification are enhancing operational efficiency and sustainability.
To increase rail’s modal share, the report recommends further capacity expansion, accelerated development of freight corridors, greater private sector participation, and improved first- and last-mile connectivity. It also underscores the need to reduce logistics costs—currently estimated at 7.97% of GDP—to boost India’s global competitiveness.
Surendra Kumar Ahirwar, Executive Director (Traffic Commercial), Railway Board, noted that Indian Railways is undergoing rapid transformation into a future-ready system. He highlighted key drivers such as enhanced safety standards, technology upgrades, adoption of artificial intelligence, and a shift towards integrated end-to-end logistics solutions. He also emphasized the need to lower container production costs to improve efficiency.
Over the past decade, Indian Railways has added nearly 31,000 km of track, reflecting a strong pace of infrastructure expansion.
Sanjay Bajpai, Advisor to the Railways Council at ASSOCHAM, said the sector is evolving from a traditional transporter into a key enabler of logistics efficiency, industrial competitiveness, and economic growth. He stressed the importance of modern terminals, improved port connectivity, and seamless multimodal integration.
With freight loading already exceeding 1.6 billion tonnes annually, Indian Railways is well-positioned for sustained growth, supported by ongoing infrastructure investments, policy reforms, and digitalisation initiatives.
