FREIGHT TRAFFIC ON the Indian railways is slowing down with the first eight months of FY25 recording just 2.1% growth in volumes over the corresponding period last year.
The growth rate between April and November 2024 was lower than the government's modest estimates of 4.4% presented in the FY25 annual Budget. Experts said that the slowdown in the freight loading is partly due to the high base effect of the years immediately after the pandemic, but it does reflect the sluggishness of economic activity.
"For two years after the pandemic, the growth rates were higher due to low base effect but now the growth rates are coming down to the pre-pandemic levels," said a former railways official. For instance, in the pre-pandemic year (FY20), the growth rates stood at just 1%.
This surged to 15% in FY22, 6.4% in FY23, and 4.7% in FY24.
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