
Indian Railways is planning to roll out a national parcel app by the last quarter of the current fiscal year or early FY28, aiming to move beyond station-to-station services and offer door-to-door delivery. The app, piloted by South Central Railway in February, lets customers book consignments, make digital payments and arrange pickup without visiting railway premises, with private partners handling first- and last-mile movement.

The move targets smaller consignments, e-commerce shipments and MSME cargo that has increasingly shifted to road transport. India's courier, express and parcel market was valued at $9.6 billion in 2026 and is projected to reach $17.5 billion by 2031, growing at 10.58% annually, according to Ken Research. Railways recorded freight loading of 1.67 billion tonnes in FY26 and has commissioned 128 Gati Shakti Multi-Modal Cargo Terminals, with approvals for another 292 locations.
Experts say the model could make railways the long-haul backbone for express logistics firms, with private players handling pickup, sorting and last-mile delivery. Scheduled parcel trains on fixed timetables, similar to pandemic-era services, could provide assured transit times for time-sensitive consignments. The ministry of railways did not respond to an emailed query.
This move signals a structural shift for Indian Railways, which has long relied on bulk commodities like coal and iron ore. The $9.6 billion courier market is dominated by road transport, where flexibility and speed have been advantages railways lacked. Success depends on whether Railways can match the reliability and tracking that e-commerce players like Amazon and Flipkart expect from their logistics partners. The 128 operational Gati Shakti terminals and 292 more approved show the physical infrastructure is being built, but service-level agreements with private delivery partners will decide adoption. Watch for a pilot rollout timeline in the next budget and whether Railways commits to fixed timetables for parcel trains.
Source: livemint.com
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