World · India Bureau
India can unlock Rs 7 lakh crore by revamping freight infrastructure: IIM study
A comprehensive overhaul of the country's freight movement network could generate massive economic savings and employment opportunities, according to analysis from the Indian Institute of Management. The dedicated freight corridor model promises to streamline cargo operations and create substantial job growth.
LSN India ·
A dedicated freight corridor designed exclusively for cargo movement could unlock approximately Rs 7 lakh crore in economic benefits for India while generating employment for one crore people, research suggests. The infrastructure revamp would fundamentally transform how goods are transported across the country, addressing long-standing inefficiencies in the logistics sector.
The proposed freight network is engineered to substantially increase cargo capacity while simultaneously reducing transit times. By creating a dedicated system separate from passenger networks, the model aims to improve the reliability and predictability of freight movement, factors that have historically constrained India's competitive advantage in manufacturing and export sectors.
The efficiency gains would ripple across multiple industries dependent on timely goods movement, from manufacturing to agriculture to e-commerce. Improved freight predictability reduces inventory holding costs for businesses and enhances supply chain stability, translating to wider economic benefits beyond direct job creation.
The study underscores how strategic infrastructure investment in logistics can address both employment and productivity challenges simultaneously. As India competes globally for manufacturing investments and seeks to boost export competitiveness, streamlined freight movement emerges as a critical infrastructure priority alongside port upgrades and warehouse modernization efforts already underway across key economic zones.