Railway freight earnings register 11% on year jump in October

In October, income from goods transported by Indian railways continued to increase, suggesting a steady recovery in demand and an increase in economic activity.

As of October 13, freight loading grew 18% year-on-year at 43.46 mt, while earnings jumped 11% year-on-year to Rs. 4,124 crore (US$ 561.78 million) to incremental loading of all commodities, including gas, fertilisers, steel, cement, and food grains, official data shows, among others.

The cement and coal division of Indian railways accounts for more than 50% of freight movement. As of October 13, 2020, 19.13 mt of coal was transported by the national transporter, compared to 17.20 mt a year earlier. In October, as much as 4.36 mt of cement was transported compared to 3.28 mt. Similarly, in October, as much as 126 car rakes were loaded compared to last year's 74 rakes.

The average loading of 53,774 waggons per day was up 16.5% year-on-year, as of October, according to the railway ministry.

After a rapid decline during the first quarter of the current fiscal year due to the interruption caused by the outbreak of covid-19, freight loading and earning steadily increased from August. Cumulative data, however, showed that there was a 9% year-on-year decrease in freight traffic to 533 mt and a 17% year-on-year decrease in earnings to Rs. 50,185 crore (US$ 683.63 billion) during April-September, according to data released by the railway ministry.

Freight traffic is considered an important macroeconomic indicator because it represents the wider economic activity pattern. The government had said earlier this month that the economic recovery had gained momentum in September. The launch of the Aatmanirbhar Bharat package and the unlocking of the economy ensured that India 's recovery gained momentum even as, according to the financing, the continued spread of the virus poses a downside risk to the short- and medium-term growth rates

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.