After months of slow growth, the movement of goods through Indian Railways saw a 6.67 percent increase in September, with a total volume of 123.53 million tonnes (mt), according to data released by the Ministry of Railways.

In September 2023, freight revenue amounted to Rs 12,956.95 crore, compared to Rs 12,332.70 crore in September 2022, marking a 5.06 percent improvement over the previous year.

The growth in freight movement was primarily driven by coal, which increased by 9.4 percent to 59.7 mt in September due to higher demand from thermal power plants across the country. Ahead of the festival season, the transportation of finished goods and containers on the railway network also increased in September.

However, the effort to diversify the freight basket by railways showed slower growth for miscellaneous goods, with a tepid 4.8 percent increase in September.

Some experts have expressed concerns that the growth of railway freight does not match the pace of India's economic growth, possibly indicating a decline in the national transporter's share of national logistics.

In June, for the first time in three years, freight volumes recorded a year-on-year decline. However, there has been a gradual recovery, with freight increasing by 6.38 percent in August.

In the first half of the fiscal year 2023-24, overall volume growth has been relatively slow, with data indicating a 2.9 percent increase. Freight earnings, on the other hand, have increased by 3.4 percent.

Cumulatively, from April to September 2023, freight loading reached 758.20 mt, an improvement of approximately 21.52 mt over the previous year for the same period. Railways earned Rs 81,697 crore during this period, compared to Rs 78,991 crore the previous year, marking an improvement of Rs 2,706 crore, according to the Ministry of Railways.