ON THE RIGHT TRACK

With private pioneers leading the path and policies dismantling barriers, India's railways are poised for a freight renaissance

- By Prajakta Karnik

India's railway network, spanning over 68,000 kms of tracks, is not just a lifeline for passengers but the pulsating artery of its logistics ecosystem. As the world's fourth-largest railway system, Indian Railways handles approximately 1,617 million tonnes of freight annually, accounting for about 27 per cent of the nation's total freight movement.

Yet, in a country where logistics costs gobble up 14 per cent of GDP—far higher than the global average of 8 per cent—railways hold untapped potential to slash expenses, curb emissions, and propel economic growth. With urbanisation accelerating and e-commerce booming, efficient freight transport is no longer optional; it's imperative for India's ambition to become a USD 5 trillion economy by 2027.

The shift toward rail-centric logistics is gaining momentum, driven by sustainability mandates and cost imperatives. Private players, from electric vehicle makers to metal giants, are increasingly ditching roads for rails, recognising the mode's capacity for bulk, long-haul efficiency. However, this transition isn't seamless. Infrastructure gaps, speed differentials with road transport, and operational hurdles persist.

The government's recent initiatives are transforming the railways from a colonial-era system into a modern, high-tech freight network. The vision is ambitious yet promising — by 2030, railways aim to capture up to 45 per cent of the freight share, cut logistics costs by 20–30 per cent, and contribute significantly to India's net-zero goals. Despite this progress, significant challenges endure.

GOVERNMENT INITIATIVES FACILITATING RAIL LOGISTICS GROWTH