Indian Railways is poised to play a central role in driving India’s economic expansion, with an ambitious target to achieve a freight capacity of 3,000 million tonnes by 2030, according to a joint report by ASSOCHAM and Automotive and Equipment Skill Council.
Currently handling around 30% of the country’s freight movement, the rail sector has substantial scope for growth. The report highlights that transformative initiatives such as Dedicated Freight Corridors (DFCs) and near-complete electrification are significantly enhancing efficiency, capacity, and environmental sustainability.
To further increase rail’s modal share, the report recommends accelerated capacity expansion, faster development of freight corridors, increased private sector participation, and improved first- and last-mile connectivity. It also stresses the urgency of reducing logistics costs, which are currently estimated at 7.97% of India’s GDP, to improve global competitiveness.
Surendra Kumar Ahirwar, Executive Director (Traffic Commercial) at the Railway Board, stated that Indian Railways is undergoing rapid transformation into a future-ready system. Key focus areas include enhanced safety standards, adoption of advanced technologies such as artificial intelligence, and the shift towards integrated end-to-end logistics solutions. He also underlined the importance of reducing container production costs to improve operational efficiency.
Over the past decade, Indian Railways has expanded its network by nearly 31,000 km, reflecting sustained infrastructure development efforts.
Sanjay Bajpai, Advisor to the Railways Council at ASSOCHAM, noted that the sector is evolving beyond its traditional role into a critical enabler of logistics efficiency and industrial competitiveness. He emphasized the need for modern terminals, stronger port connectivity, and seamless multimodal integration.
With freight loading already surpassing 1.6 billion tonnes annually, Indian Railways is well-positioned to sustain its growth trajectory, supported by ongoing infrastructure investments, policy reforms, and digitalisation initiatives.