A study by Australia’s University of New South Wales has found that freight corridors built for Indian railways are promoting social equality. States that have low GDP per capita are deriving special benefits from these corridors.
It also shows that these corridors are helping to reduce economic gaps, leading to more equitable economic growth across the country.
Although the study focused on the Western Dedicated Freight Corridor (WDFC) in fiscal year 2019-20, experts say it has benefited multiple industries and consumers, boosting the Indian economy.
According to the study, the dedicated freight corridor provides financial benefits to all sectors. However, due to its proximity, the surrounding areas benefit more.
The study notes that transportation costs have decreased, leading to improvements in GDP in regions where costs fell the most. Due to this, prices of goods decreased by 0.5 percent.
Further, the study also found that between 2018-19 and 2022-23, dedicated freight corridors contributed 2.94 per cent to the revenue of Indian Railways.
According to DFCCIL (Dedicated Freight Corridor Corporation of India Limited), this study shows that even remote areas have benefited from reduced transportation costs.
Regarding the model used in the study, DFCCIL said the model was developed by the Ministry of Road Transport and Highways to assess the economic impacts of infrastructure development.
In conclusion, the study has shown that targeted freight corridors are playing a vital role in economic development, thereby promoting economic progress across the country.
