Indian Railways Earnings Reach Rs 2 Lakh Crore with Record Freight Loading
Indian Railways has recorded impressive earnings of Rs 2.04 lakh crore in the current fiscal year, a significant 4% increase over the same period last year. The surge is largely attributed to higher freight loading and a substantial increase in the number of special trains during peak demand periods. This milestone marks a crucial moment for the national transporter, which has consistently worked towards enhancing operational efficiency and expanding its services.
A major contributor to this record-breaking figure is the freight segment, which has seen an uptick of nearly 2%, with Indian Railways handling almost 1.18 billion tonnes of goods from April to December 2024. This growth is expected to continue, with a senior official stating that Indian Railways is exploring adjustments to freight rates to increase revenue even further. “We estimate higher goods earnings if fares on certain commodities are rationalised,” the official said, highlighting that freight operations are likely to remain at the core of their revenue model. The rise in earnings also reflects a broader increase in the number of train services, with the total number of mail, express, passenger, and other trains rising by 3%, reaching a historic total of more than 2.07 million runs. This achievement comes at a time when passenger demands are surging, and Indian Railways has responded by introducing a higher frequency of special trains. The number of special trains run during periods of high demand surged by an extraordinary 54% year-on-year, reaching a total of 57,169 special trains during the nine-month period.
In line with its ongoing expansion efforts, Indian Railways is also rolling out a new timetable that includes 62 pre-scheduled special trains on popular routes. This move is designed to ensure that train availability meets rising demand, especially during peak travel periods. The new timetable will also feature the introduction of 74 new services, including 34 pairs of Vande Bharat trains, which are expected to enhance the speed, comfort, and convenience of passenger travel. Vande Bharat trains are at the heart of Indian Railways’ modernisation strategy. These semi-high-speed trains are designed to significantly reduce travel times between major cities and improve passenger comfort. With the introduction of more Vande Bharat trains, the railways hopes to attract more passengers and compete with other modes of transport in terms of speed and reliability. Looking ahead, Indian Railways is setting its sights on more ambitious projects. One of the key goals for the coming year is to continue improving infrastructure, including commissioning upgraded railway stations, launching more modern trains, and decongesting the track network. These efforts are designed to address the growing demand for rail services and ensure that the infrastructure is capable of supporting India’s expanding economy.
As part of this long-term vision, the Indian government is expected to allocate an additional 15-20% increase in capital expenditure (capex) for FY26, which could see the overall allocation rise from Rs 2.65 lakh crore in the current fiscal year to over Rs 3 lakh crore. This increased budget will likely be directed towards the development of railway stations, procurement of new trains, and the enhancement of signalling and track systems. According to officials, nearly 80% of the current year’s capex has already been spent, and the target for this fiscal year is expected to be met well before its conclusion. As Indian Railways continues to grow, its focus is not only on expanding services and revenues but also on improving safety and sustainability. The introduction of new trains, the focus on decongesting tracks, and an increased capex allocation reflect a commitment to long-term growth and operational excellence.
The increased earnings are a testament to Indian Railways’ evolving strategies and its ability to meet the transportation needs of a rapidly growing nation. By modernising its fleet, improving infrastructure, and adjusting freight rates, the railways is positioning itself for future success. With a target operating ratio of 98.22% by the end of the fiscal year, the national transporter is optimistic about its financial health and its capacity to reinvest in further enhancing railway infrastructure through the Development Fund and Rashtriya Rail Sanraksha Kosh (RRSK). Indian Railways’ strong financial performance in the current fiscal year underscores the progress made by the national transporter in enhancing its operations, freight services, and passenger offerings. With an ambitious vision for modernising its services, increasing train frequencies, and expanding infrastructure, Indian Railways is set to continue playing a pivotal role in driving the country’s economic growth. The upcoming budget will likely provide the financial muscle needed for these ambitious plans, ensuring that the railways remains a key player in India’s future.
