India's railways parcel business is engaging e-commerce partners to increase its share in parcel transport in the market, local media reported on Monday.
The railways, which earns around 21 billion rupees (338 million U.S. dollars) annually from its parcel business, expects to raise its income to 50 billion rupees (806 million U.S. dollars) in three years by tapping the emerging businesses, facing fierce competition from road transport, said local daily Times of India online.
"We are working on a special scheme to tie up with emerging e- commerce companies for transportation of their parcels," the report quoted a senior railway board official as saying.
"Initial deliberations have been held and suggestions will be sought from all major online retailers including Amazon and Flipkart before a detailed plan is firmed up."
According to a Morgan Stanley projection, India's e-commerce market will grow to 100 billion U.S. dollars by 2020 from 3 billion U. S. dollars in 2013.