Railways account for 28-30% of freight movement, well below global benchmarks: ASSOCHAM

New Delhi: Railways account for 28 to 30 per cent of freight movement, which is significantly lower than global benchmarks, indicating substantial headroom for growth, according to a joint report released by the industry body, the Associated Chambers of Commerce and Industry of India (ASSOCHAM), and business consultancy firm ASCELA.

The report, titled "Future Ready Railways for Viksit Bharat," added that as India targets 3,000 million tonnes of freight capacity by 2030, the sector is witnessing accelerated transformation, driven by initiatives such as Dedicated Freight Corridors and near-complete electrification, enhancing both efficiency and sustainability.

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It further emphasised the need to increase rail's modal share through capacity augmentation, expansion of Dedicated Freight Corridors, enhanced private participation, and improved last-mile connectivity.

It also underlined the importance of reducing logistics costs -- currently at 7.97 per cent of GDP -- by leveraging railways as a more cost-efficient and sustainable mode of transport, which is critical to strengthening India's global competitiveness.

"ASSOCHAM-ASCELA presented the report at a national conference held on Wednesday in New Delhi, bringing together senior policymakers, industry leaders, and sector experts to deliberate on the evolving role of Indian Railways in driving economic growth and logistics transformation," a press note from ASSOCHAM said.

Addressing the gathering, Surendra Kumar Ahirwar, Executive Director (Traffic Commercial), Railway Board, highlighted that Indian Railways is undergoing a phase of accelerated transformation, moving beyond incremental progress to a more dynamic, future-ready system.

He underscored that railways today serve a dual role, not only as a catalyst for economic development but also as a significant contributor to it through their extensive manufacturing and service ecosystem.

Sanjay Bajpai, industry veteran and advisor, Railways Council, ASSOCHAM, highlighted the ongoing shift in Indian Railways from being a traditional transporter to becoming a key driver of logistics efficiency, industrial competitiveness, and economic expansion.

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He emphasised that the future of railways lies in strengthening infrastructure capacity, modernising terminals, enhancing connectivity with ports and logistics hubs, and enabling seamless multimodal integration.

Another speaker, Sushil Nowal, Co-Chair, National Railways Council, and EVP, JSW Steel, highlighted the need for efficient and seamless movement.

He emphasised the importance of Dedicated Freight Corridors and underscored the critical role of electrification in Indian Railways, which has reached nearly 100 per cent.