Dedicated freight corridors Can Add Rs 160 Bn to India's GDP

29 Oct 2024 CW Team

In a recent study conducted by the University of New South Wales (UNSW) in Australia, India’s Dedicated Freight Corridors (DFCs) are projected to boost the country’s GDP by Rs 160 billion.

The findings, shared by the Dedicated Freight Corridor Corporation of India Limited (DFCCIL), highlight the transformative economic impact of the corridors, particularly the Western Dedicated Freight Corridor (WDFC).

The operationalisation of the WDFC has significantly reduced freight costs and travel times, leading to commodity price reductions of up to 0.5 per cent, DFCCIL reported.

Furthermore, the study indicates that DFCs have contributed to 2.94 % of the revenue growth achieved by Indian Railways between the fiscal years 2018–19 and 2022–23, with over 10 % of India’s rail freight now managed through DFC routes. The DFC network, spanning 2,843 km and passing through 56 districts across seven states, is nearing completion at 96.4 % as of October 2024.

The Eastern DFC (EDFC), stretching 1,337 km from Ludhiana to Sonnagar, is fully operational, while the WDFC, covering 1,506 km from Dadri to Mumbai, is 93.2 % complete.

These corridors connect key industrial hubs, including coal mines, thermal power plants, cement factories, and large ports such as Mundra, Kandla, Pipavav, and Hazira.

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