A recent UNSW study highlighted India's DFCs' significant economic impact, projecting a Rs 16,000 crore GDP boost. The WDFC notably reduced freight costs and travel times, cutting commodity prices by 0.5%. DFCs contributed 2.94% to Indian Railways' revenue growth, managing over 10% of rail freight. With 96.4% completion, spanning 2,843 km, these corridors link key industrial hubs. Trains on DFCs reach speeds of 50-60 km/h, with a bright future for India's logistics, witnessing a 60% increase in daily operations.
A recent study conducted by the University of New South Wales (UNSW) in Australia has shed light on the remarkable economic potential of India's Dedicated Freight Corridors (DFCs), projecting a substantial boost of Rs 16,000 crore to the country's GDP. The findings, shared by the Dedicated Freight Corridor Corporation of India Limited (DFCCIL), emphasize the transformative impact of these corridors, particularly focusing on the Western Dedicated Freight Corridor (WDFC).
The operationalization of the WDFC has not only led to a significant reduction in freight costs and travel times but has also resulted in price reductions for commodities by up to 0.5 percent, as reported by DFCCIL. The study further reveals that DFCs have played a vital role in contributing to 2.94 percent of the revenue growth achieved by Indian Railways between the fiscal years 2018–19 and 2022–23, with over 10 percent of India's rail freight now being managed through DFC routes.
Spanning 2,843 kilometers and traversing 56 districts across seven states, the DFC network is on the verge of completion, currently standing at an impressive 96.4 percent as of October 2024. While the Eastern DFC (EDFC), stretching 1,337 kilometers from Ludhiana to Sonnagar, is fully operational, the WDFC, covering 1,506 kilometers from Dadri to Mumbai, is nearing completion at 93.2 percent.
These corridors serve as vital links connecting key industrial hubs such as coal mines, thermal power plants, cement factories, and major ports like Mundra, Kandla, Pipavav, and Hazira. Trains utilizing these dedicated tracks have demonstrated remarkable average speeds ranging from 50 to 60 km per hour, with the potential for further acceleration up to 100 km per hour, showcasing a significant improvement compared to conventional tracks.
Aside from driving economic growth, the study underscores the "Social-Equalising Effect" of DFCs, highlighting how regions with lower per-capita GDPs have experienced significant economic advantages. The benefits have been most pronounced in the western regions nearest to the WDFC, with even areas further away reaping positive economic impacts due to reduced transportation costs, as per reports from the Economic Times.
Currently, an average of 325 trains operate daily on the DFCs, marking a notable 60 percent increase from the previous year. This uptick underscores the growing significance of these corridors within India's logistics and supply chain infrastructure, promising a brighter economic future fueled by enhanced connectivity and efficiency.
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