FICCI, in association with KPMG in India, has released a knowledge report titled “Unlocking Rail Freight Growth: Making Rail Accessible for India’s MSMEs”, highlighting the need to improve rail freight accessibility for micro, small and medium enterprises (MSMEs) to reduce logistics costs and strengthen India’s industrial competitiveness.
The report notes that while rail offers a significant cost advantage over road transport, many MSMEs continue to depend on road due to challenges such as limited first- and last-mile connectivity, cargo aggregation, terminal accessibility, wagon availability and service predictability. It proposes that improving access—not just expanding rail infrastructure—will be key to increasing rail’s share in freight movement.
The study introduces three frameworks—Total Logistics Cost and Impact (TLCI), Market Aligned Terminal Accessibility (MATA) and Wagon Access and Availability (WAA)—to help policymakers and industry identify barriers that prevent MSMEs from using rail freight more effectively. It also recommends modernising common-user freight terminals, strengthening digital systems, improving wagon planning, enabling freight aggregation platforms and fostering closer collaboration between Indian Railways and state governments to create a more inclusive logistics ecosystem.
Vivek Lohia, Chairman, FICCI Committee on Railways and Managing Director, Jupiter Wagons Limited, said, “Indian Railways enjoys a significant structural cost advantage for freight movement. Addressing access and aggregation gaps will be key to expanding rail’s role in India’s MSME freight ecosystem. We hope this report encourages constructive dialogue and meaningful collaboration across the freight and logistics ecosystem to strengthen Indian Railways’ role in supporting a more efficient, inclusive and future-ready freight transport system.”
