Bridging Economic Gaps: The Impact of India's Dedicated Freight Corridors
The dedicated freight corridors in India are significantly aiding in bridging economic disparities between regions with varying per-capita GDPs. A study indicates these corridors promote equitable economic growth by reducing freight costs, enhancing connectivity, and boosting GDP, particularly benefiting regions close to the corridors.
- Country:
- India
A recent study from the University of New South Wales reveals that India's dedicated freight corridors play a crucial role in reducing regional economic disparities. These corridors particularly benefit states with lower per-capita GDP, suggesting a pathway to more equitable growth nationwide.
The study, published in the Elsevier Journal, focused on the Western Dedicated Freight Corridor (WDFC) for the 2019-20 financial year. It highlights that reducing travel costs significantly contributes to regional and national economic advancement, benefiting several industries and boosting consumer savings.
According to the study, freight corridors contributed to 2.94 percent of Indian Railways' revenue growth between 2018–19 and 2022–23. With improved freight train speed and safety, regions along the WDFC and EDFC are experiencing decreased transportation costs and enhanced economic benefits.
(With inputs from agencies.)