Freight corridors fuel equitable economic growth across India: Study

  • Industry News
  • Nov 04,24
The DFC network spans 2,843 kilometers across seven states, with the 1,337-km Eastern DFC fully operational from Ludhiana to Sonnagar, Bihar, and the 1,506-km Western DFC nearly complete, connecting Dadri, Uttar Pradesh, to Mumbai.
Freight corridors fuel equitable economic growth across India: Study

The Indian Railways' dedicated freight corridors (DFCs) have been instrumental in reducing regional economic disparities, according to a study by the University of New South Wales, Australia. The findings, published in the Elsevier Journal, reveal that states with lower per capita GDP are experiencing substantial economic benefits, contributing to more balanced growth nationwide.

Focusing on the Western Dedicated Freight Corridor (WDFC) for the financial year 2019-20, the study highlights how these corridors help reduce freight costs across regions, thus supporting various industries and lowering commodity prices by up to 0.5%. This has resulted in a 2.94% increase in Indian Railways' revenue between FY2018-19 and FY2022-23, with the western regions closest to the DFC seeing the most significant benefits due to greater cost reductions.

Using a computable general equilibrium model developed by the Ministry of Road Transport and Highways, the study shows how reduced freight costs and travel times foster GDP growth, particularly benefiting economically disadvantaged states and promoting equitable development across India.

The DFC network spans 2,843 kilometers across seven states, with the 1,337-km Eastern DFC fully operational from Ludhiana to Sonnagar, Bihar, and the 1,506-km Western DFC nearly complete, connecting Dadri, Uttar Pradesh, to Mumbai. Currently, the corridors handle an average of 325 daily trains—a 60% increase from last year—boosting efficiency with faster, heavier, and safer freight transport, according to the Dedicated Freight Corridor Corporation of India Limited (DFCCIL).

(Business Standard)

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