NITI Aayog Unveils Plan to Supercharge Rail Container Freight

New Delhi, May 30, 2025 – NITI Aayog, India’s premier policy think tank, has unveiled a strategic push to shift container freight from roadways to railways in an effort to enhance efficiency, lower logistics costs, and curb carbon emissions. With trucks currently carrying 66% of non-bulk cargo and trains handling only 30%, the initiative will commission a detailed study examining pricing structures, global benchmarks, and regulatory bottlenecks in rail container operations. The exercise aims to propose fairer freight tariffs, streamline train turnaround times, and address last-mile delivery challenges to make rail transport more attractive to shippers and private operators

The study will also assess inland container depots, freight terminals, and the availability of containers, offering policy recommendations for cargo consolidation—particularly for parcel and less-than-container-load shipments. This plan aligns with India’s National Logistics Policy, which targets a reduction of logistics costs from 16% to 8% of GDP by 2030 by leveraging greener and more cost-effective rail corridors. Industry experts suggest that modernized infrastructure and dedicated freight corridors could alleviate road congestion and boost overall supply chain efficiency. The Finance Ministry has tasked NITI Aayog with identifying the optimal balance between rail, road, and waterways to support India’s evolving freight ecosystem.