In a major infrastructure boost unveiled in the Union Budget 2026–27, Finance Minister Nirmala Sitharaman proposed a dedicated freight corridor (DFC) linking Dankuni in West Bengal with Surat in Gujarat. This strategic corridor aims to create a new east-west economic spine, enhancing connectivity between industrial hubs in eastern and western India while improving the efficiency of cargo transport.
Strengthening Supply Chains
The proposed corridor will streamline logistics between key manufacturing and industrial regions, reducing congestion on existing transport networks and improving the speed and reliability of goods movement. By separating freight traffic from passenger trains, the DFC is expected to enhance overall rail efficiency and lower transportation costs for businesses.
Environmentally Sustainable Transport
In line with India’s commitment to green infrastructure, the corridor is designed to reduce dependency on road transport, thus lowering carbon emissions and promoting environmentally sustainable cargo movement across the country.
Expansion of Freight and Waterway Networks
This new east-west DFC complements India’s growing network of freight corridors, which currently includes the Eastern Corridor (Ludhiana-Dankuni) and the Western Corridor (Dadri-JNPT). Alongside the corridor, the budget also plans to operationalize 20 new national waterways over the next five years, facilitating multimodal logistics and further reducing transport costs.
Infrastructure-Led Growth
The announcement is part of the government’s broader infrastructure push in Budget 2026–27, which also includes the development of seven new high-speed rail corridors and increased capital expenditure of ₹12.2 lakh crore for FY27. By integrating rail, waterway, and port infrastructure, the government aims to strengthen India’s trade competitiveness, boost regional economic growth, and attract private investment.
This east-west freight corridor is expected to transform India’s logistics landscape, providing a robust backbone for industrial and export-oriented growth while supporting the country’s long-term vision of sustainable economic development.