As we approach the Union Budget 2024, there is great anticipation regarding the government’s commitment to advancing clean mobility and sustainability in Indian Railways. In FY24, the overall rail market stood at ~US$ 31 billion, with rail logistics and transportation contributing ~US$ 22 billion and ~US$ 9 billion, respectively. In FY24, e-rail accounted for 66% of the total railway market and is expected to reach 85% penetration by FY30, valuing at ~US$ 49 billion out of an expected total railway market of ~US$ 58 billion. This robust growth trajectory underscores the critical role of green initiatives.
Budget allocations for Indian Railways have consistently increased, from US$ 19 billion in FY20 to US$ 29 billion in FY24, reflecting a compound annual growth rate (CAGR) of 12%. This growth, driven by the expansion of dedicated freight corridors (DFCs), high-speed rail (HSR) networks, and other infrastructural advancements, aligns with the objectives of the National Rail Plan.
Electrification remains a cornerstone of the sustainability strategy, with 96% of the route kilometres (RKM) already electrified and 21 states achieving complete electrification. Achieving 100% electrification in the upcoming Union Budget is imperative, along with expanding solar power initiatives and developing hydrogen and biofuel trains.
The upcoming budget is poised to be a pivotal moment for Indian Railways’ journey towards sustainability. With the right investments and initiatives, we can achieve substantial reductions in greenhouse gas emissions, energy consumption, and pollution levels, setting a benchmark for global rail systems.
