Indian Railways must urgently expand beyond traditional heavy cargo and tap into the high-growth sectors of lightweight freight if it wants to achieve its freight loading targets by 2027 and raise its modal share by 2030, according to a joint report by a leading industry chamber and consultancy. The report highlights that coal, cement and iron & steel account for nearly 70% of the railways’ freight volume today.
This overwhelming reliance on a narrow basket of heavy commodities has stifled the broader potential of the national freight network. With the country aiming to become a $5 trillion economy, the report urges Indian Railways to reconfigure its freight strategy. Lightweight goods such as FMCG products, consumer durables, e-commerce parcels, automobiles, paper goods and pharmaceuticals have shown rapid growth in recent years. However, most of these continue to move by road due to lack of suitable infrastructure and systems within the rail network. The report notes that road remains the default choice due to its flexibility, better service standards, and faster deliveries in most regions.
To change this, Indian Railways needs to ensure operational efficiency, reliable scheduling, availability of specialised wagons, and competitive pricing models. More importantly, a digital and customer-centric ecosystem must be built to attract new-age industries and logistics players. According to senior officials from the freight and transport sectors, rail freight has seen significant infrastructure upgrades in the past decade. New tracks, expanded sidings, freight corridors and logistics hubs have been developed with billions of rupees in investment. However, these hard assets must now be supported by policy interventions, commercial reforms, and sector-specific marketing efforts.
The report also stresses the need for capacity alignment between traditional and emerging commodity flows. Unlike bulk freight, high-volume sectors such as retail, pharmaceuticals and electronics demand smaller shipment sizes, faster turnaround times and integrated last-mile delivery solutions. This calls for innovation not just in wagons, but in multimodal linkages and freight policies as well. Transport analysts believe that targeting a more diversified freight portfolio could make Indian Railways not only more competitive, but also significantly more sustainable. Shifting even a fraction of road cargo to rail can reduce emissions, ease traffic congestion and lower logistics costs nationally.
In light of India’s green goals and rapid urbanisation, this shift becomes more than just a commercial necessity – it aligns with national ambitions for inclusive, low-carbon growth. As the railways sets its sights on 3,000 million tonnes of freight annually by 2027 and a 45% modal share by 2030, the next frontier lies in tapping sectors that have so far remained under the rail radar.
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