New Delhi

Railwaysare set to play a key role in driving India’s economic growth as the country targets a freight capacity of 3,000 million tonnes by 2030, a report has said.

As per the ASSOCHAM-AESCLA report, railways currently account for up to 30 per cent of freight movement, indicating substantial growth potential.

It highlighted that the sector is undergoing rapid transformation, driven by initiatives such as Dedicated Freight Corridors and near-complete electrification, which are improving efficiency and sustainability.

The report pointed out the need to increase rail’s modal share through capacity expansion, further development of Dedicated Freight Corridors, greater private sector participation, and improved last-mile connectivity. It also underlined the importance of reducing logistics costs -- currently at around 7.97 per cent of GDP -- to enhance India’s global competitiveness.

Dr. Surendra Kumar Ahirwar, Executive Director (Traffic Commercial), Railway Board, said Indian Railways is undergoing accelerated transformation and evolving into a future-ready system. He noted that the railways are not only facilitating economic growth but also contributing to it through a vast manufacturing and service ecosystem.