Volume of freight carried by Indian railways FY 2010-2022

In financial year 2022, the freight volume carried by the Indian Railways reached over 1.42 billion metric tons. It had the second largest share in the freight logistic sector, just behind road transport. As a country with many metropolitans and states located inland, freight transport is dependent on the land modes.

Railway in India

The railway sector in India was the third largest in the world. Trains were first introduced to the subcontinent in the early 19th century, mainly for industrial use, carrying stones for construction works. The first passenger train ran between Bombay and Thane with around 400 passengers onboard for a 1.6-kilometer trip in 1853. Fast forward to the 21st century, the first high-speed rail was planned and under construction between Mumbai and Ahmedabad with an operating speed of 320 kilometers per hour. The project was expected to be completed by the end of 2023 despite the disruption brought by the coronavirus pandemic.

Logistics industry in India

India’s logistics industry faces unique challenges as India has an expansive geographic presence and large population. When it comes to efficiency, it lags behind many other countries due to an inefficient modal mixture, especially being overly dependent on road transport. As railway provides the most economical freight solution in India, the government invested heavily in the modernization and expansion of the railway system to improve efficiency and reduce costs of logistics across the country.