Indian Railways has demonstrated a significant upward trajectory in its revenue generation over the past four years, with substantial increases in both freight and passenger services.
As of the 2023-24 financial year, the railway giant has reported a remarkable surge in its earnings, surpassing projections and reaffirming its central role in the nation’s economic infrastructure. Freight revenue has seen a staggering rise of 48.29 per cent, jumping from Rs 1.13 lakh crore in 2019-20 to an impressive Rs 1.68 lakh crore by 2023-24. This increase of Rs 54,805 crore highlights the growing demand for Indian Railways’ freight services, an important indicator of the country’s economic recovery and growth. With its extensive reach across sectors such as coal, cement, steel, and agricultural products, the surge in freight traffic is a testament to both domestic industrial demands and global trade patterns, making railways a key component in India’s supply chain network.
Passenger revenue, too, has experienced a substantial increase, rising nearly 40 per cent, from Rs 50,669 crore in 2019-20 to Rs 70,693 crore in 2023-24. The uptick in passenger revenue is reflective of India’s growing middle class and increased mobility. The period also saw several policy measures designed to improve the overall travel experience, such as the introduction of dynamic pricing models like flexi fares, which account for about 5.7 per cent of total revenue from passenger services. These changes have contributed to greater revenue generation while responding to the varied needs of passengers. Of particular note is the balanced contribution of the various coach classes to the total revenue. Non-AC coaches, including general and sleeper classes, account for approximately 82 per cent of total seats and generate around 53 per cent of the revenue.
On the other hand, AC coaches, despite comprising just 18 per cent of total seats, account for the remaining 47 per cent of the revenue, reflecting the preference of higher-income passengers for more comfortable travel options. This revenue split underscores the continued importance of offering a variety of travel classes to meet the diverse needs of India’s expansive rail passenger base. The Indian Railways’ progress in these areas can also be attributed to the modernization of its services, better connectivity across regions, and a focus on improving the overall passenger experience. Additionally, the rail network’s efforts to transition towards more eco-friendly and sustainable practices, including the integration of renewable energy into its operations, are aligning with broader national goals of reducing carbon emissions and promoting green growth. As of April 2024, the railway system is operating with an extensive fleet of 79,000 coaches, including 56,000 general and non-AC sleeper coaches and 23,000 AC coaches. This vast network not only supports freight transportation but also plays a crucial role in connecting millions of passengers across the country.
Looking ahead, the Indian Railways is poised to continue capitalizing on these trends, with plans for further modernisation, the introduction of new high-speed trains, and an increased focus on sustainability. With these continued efforts, the organisation is not only meeting current demand but also preparing to serve India’s rapidly expanding population and economy in the years to come.
Indian Railways Breaks Records with Rs 1.68 Lakh Crore Revenue
