Indian railway budget increases freight rates and invests in existing lines

The Indian government has announced an increase in freight rates on Indian railways of 3% on average.

Share prices of companies that use the railways has fallen, with the Container Corporation of India, which operates container depots and most of India’s biggest container terminals, down 4.3%.

Sharat Misra, president of the Association of Container Train Operators said higher costs would be passed on to consumers. “Instead of increasing rates in every budget, they should have a long term policy on freight rates and passenger fares. Also, there should be an independent regulator to examine the efficacy of any increase,” he said.