Railways expects lower iron-ore movement for domestic use

The Indian Railways expects to ferry lesser iron ore for domestic steel plants, while nearly doubling its projected quantity for exports in the fiscal 2024-25. According to internal estimates, the Indian Railways will carry 91.84 million tonnes (MT) of iron-ore for local steel plants this year, 9% down from 100.97 MT in the fiscal 2023-24. On the other hand, exports of the commodity are expected to touch 15.48 MT, over 87% more than 8.26 MT iron ore exports in the previous fiscal.

According to government estimates, India’s steel demand will grow by 8% annually in 2024 and 2025. Finished steel demand of the country touched 138.83 MT in 2023-24 while it stood at 123.20 MT in fiscal 2022-23.

“This projection for higher iron ore exports is concerning for the domestic steel industry since it will mean more import of finished products to meet the growing local demand,” a representative from one of India’s primary steel producers told ET.


Total iron ore movement by the Indian Railways is expected to remain flat at 184.15 MT during fiscal 2024-25, marginally up from 183.99 MT loading in fiscal 2023-24.

Among other commodities, the Railways hopes to achieve its highest ever coal loading, crossing 830 MT during the current fiscal. This is a nearly 9% jump over 761.76 MT loading registered for fiscal 2023-24.

A steep decline is projected for transport of food grain, falling from 54.51 MT in financial year 2023-24 to 48.50 MT during the current year. This is the second consecutive year of decline in food grain movement over the railways, down from 70.92 MT in fiscal 2022-23. Fertilizer transport is expected to remain flat at 59.90 MT so are petroleum products at 51 MT in the current year.

Total container movement is also expected to register a rise of 2.86% to 88.03 MT in 2024-25, outpacing the 85.58 MT loading clocked in 2023-24. This growth is muted compared to the 8.03% rise in container ferried during the previous fiscal, topping the 79.22 MT loading during 2022-23.

Besides goods, the railways expects that total passenger growth will touch 9.10% to reach 7.4 billion during 2024-25, comfortable crossing the 6.8 billion figure achieved in 2023-24.