Unveil the Indian Railway Freight Activity Index: A Groundbreaking Tool to Monitor IRFA

Mumbai, 10^th, January 2024 - Dun & Bradstreet, a global leader in business decisioning data and analytics, in collaboration with Jupiter Wagons, introduces the Indian Railway Freight Activity (IRFA) Index, a pioneering initiative aimed at providing a comprehensive and data-driven assessment of the dynamics of Indian Railway freight activity. The index, launched amid the government's efforts to enhance railway freight modal share, amalgamates factual data from the Ministry of Railways with survey responses from railway freight users.

At a quarterly frequency, the IRFA Index comprises two vital sub-indices - the Activity sub-index, based on data released by the Indian Railways, and the Experience sub-index, derived from a survey of railway freight users. This unique approach ensures a holistic evaluation, combining quantitative data with qualitative feedback from users, making it a first-of-its-kind tool to monitor and understand the intricacies of Indian railway freight activity.

Key Findings:

• IRFA Index for Q3 2023 stands at 48.2, indicating a near-neutral level of activity compared to the same quarter in the previous year.
• User Experience and Optimism: In Q3 2023, the Experience sub-index was at 56, while the Activity sub-index stood at 40.4.
• Optimism for Q4 2023: Optimism for Q4 2023 is high at 60. The users anticipate increased demand and supply for containers and cargo handling machinery.
• Sectoral Insights: Optimism in the capital goods sector is noteworthy for Q4 2023, indicating potential traction in investment activity.
• Modal Share: While road transport retains the largest share, 16% of respondents transport more than 50% of their freight through railways.
• Efficiency and Cost-Effectiveness: 75% of respondents rate railway freight operations as efficient. Cost effectiveness emerges as the primary demand driver.
• Connectivity Challenges: Connectivity challenges and cost are not significant constraints for transporting freight through railways.

Arun Singh, Global Chief Economist, Dun & Bradstreet said “The IRFA Index, a collaborative effort between Dun & Bradstreet and Jupiter Wagons, a pivotal tool for policymakers and stakeholders in understanding and optimizing Indian railway freight activity. The Q3 2023 findings suggests an opportunity for enhancement in the current state. Particularly noteworthy is the substantial optimism recorded for Q4 2023, standing at 60, indicating positive expectations and a hopeful outlook for future improvements. These insights, coupled with sector-specific data, showcase the diverse landscape of the freight industry, offering valuable guidance for strategic decision-making. We believe this index will play a crucial role in shaping data-driven decisions, fostering efficient supply chain management, and ultimately contributing to the government's vision of enhancing the railway freight modal share."