India & Asia’s Railway Revolution

Rapid economic growth and expanding mobility in Asia is slowly reshaping global trade and production networks. For Asia’s expanding transport sector to meet its commitments for the 2030 Agenda for Sustainable Development and Paris Agreement, the focus on railways in the transport sector is a much-needed economic and environmental imperative. Today, rail connectivity accounts for just 1% of transport carbon emissions, while shouldering 8% of motorised passenger travel and 12% of freight demand. Hence, strategic railway development is a powerful lever for enhancing economic vitality, energy security and promoting human well-being

Growth of Railway in Asia 

The Asian railway industry has seen constant growth, being between 2000 and 2023, the Asian network has expanded by 234,000 km, with an annual growth rate of 2.1%.

Asian nations have also exhibited diverse trends in heavy railway infrastructure development and usage. Countries like Kazakhstan, Uzbekistan have expanded their networks and seen significant increase in utilization, reflecting successful alignment with demand. 

Conversely, changing geopolitical scenarios have transformed global trade in railway equipment where previous leaders have seen a drop in their share of trade. The vacuum has been taken up by countries like Australia and India, who are increasing their import growth. 

Official Development Assistance (ODA) for Asian transport rose from 43% of the global total to 55% in recent years, with rail finance jumping ten-fold. Between 2002 and 2022, the ODA for Indian transport neared $25 billion with 76% of the share being directed to railway alone. This reflects changing national ambitions crystallized by policies from the government to grow the sector and build more railway infrastructure. 

Energy Efficiency and Electrification

The capacity of railways for electrification and inherent energy efficiency makes them a practical instrument for decarbonization. Electrification enables better haulage capacity and higher train speeds leading to reduced travel time and enhanced efficiency. 

Furthermore, modernization in railways such as route optimization, energy-efficient locomotives, regenerative braking system and improved rolling stock has brought efficiency and reduced the energy intensity of the sector. India’s energy intensity on rail transport decreased from 34 to 13 MJ per thousand USD, indicating one of the most energy-efficient railways in the Asia-Pacific.

Additionally, 98% of the Indian Railway’s broad gauge network has been electrified and the Mission 100% Electrification is in full swing. Electrification has enabled annual savings of Rs. 2960 crore for Railways, thereby increasing financial efficiency. The completion of the project depends on various factors such as forest clearance, number of working months in a year, climatic conditions, etc.

India’s Railway Transformation

The budget for railways has increased more than 9 times since 2014, with introduction of world class trains such as Vande Bharat, Amrit Bharat and Namo Bharat rapid rail. The PM Gati Shakti National Master Plan, launched in 2021 aims to improve multimodal infrastructure connectivity across India with railways being a crucial anchor. 

India’s national railway exemplifies the ambition of achieving dedicated freight corridors, operational improvements, intermodal solutions and recognizing that rail is crucial to decarbonizing the transport sector. The target is a 45% freight model share along with becoming the world’s largest ‘Green Railway’ running entirely on electric power and achieving net-zero carbon emissions by 2030. This is being done by initiatives such as the dedicated freight corridors (DFCs), 100% LED lights in railway stations, service buildings and expanding metro systems that are transforming urban mobility and logistics within the country. 

Due to favouring policies and investments, railway utilization in India increased from 25 million transport units per kilometre in 2011 to 28 million in 2023, with rapid growth since the COVID pandemic. 

A strong railway network signals India’s determination to build a more competitive, modern and low-carbon transport ecosystem which is capable of supporting sustained economic growth.