THE CONTEXT: Indian Railways, the fourth-largest railway network globally, has undergone significant transformation between 2014 and 2024, achieving milestones such as laying 31,000 km of new tracks, electrifying 40,000 km of rail network, and increasing annual passenger traffic to 750 crore travelers. With a Gross Budgetary Support of ₹2.52 lakh crore for FY 2024-25 and freight revenue estimated at ₹1.8 trillion, Indian Railways continues to drive economic growth while modernizing infrastructure and enhancing connectivity.
KEY PILLARS OF TRANSFORMATION IN INDIAN RAILWAYS
Infrastructure Expansion and Capacity Enhancement
Track Kilometers:
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- Past vs Present: The total route length has grown to 68,000 km, with track kilometers expanding to 132,000 km, doubling operational capacity.
- Comparative Growth: Between 2014-2024, 31,000 km of new tracks were laid compared to 14,900 km in the preceding decade (2004–2014).
- Impact: Enhanced capacity has reduced congestion, increased train speeds (up to 130 kmph on 23,000 km of routes), and facilitated smoother passenger and freight movement.
Dedicated Freight Corridors (DFCs):
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- Scale: 2,741 km of world-class DFCs were established between 2014-2024, compared to none in the previous decade.
- Impact: These corridors have reduced congestion on passenger lines, improved freight efficiency, and enhanced India’s logistics competitiveness globally.
Electrification and Green Initiatives
Electrification Targets:
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- Progress: Electrification expanded from 5,188 km before 2014 to over 44,000 km by 2024. Indian Railways is on track to achieve 100% electrification soon.
- Outcome: This has significantly reduced carbon emissions, decreased dependence on fossil fuels, and improved operational efficiency.
Hydrogen Trains:
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- Innovation: India is set to roll out 1,200 HP hydrogen-powered locomotives that surpass global benchmarks in power and efficiency.
- Significance: This reflects a push toward sustainable and cleaner rail solutions while positioning India as a leader in green transportation technology.
Technological Advancements and Safety
KAVACH Anti-Collision System:
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- Implementation: The largest deployment of anti-collision technology globally in a mixed-traffic environment.
- Impact: Enhanced safety standards have drastically reduced accidents and established Indian Railways as a leader in adopting cutting-edge safety measures.
Modern Rolling Stock:
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- Locomotives and Coaches: Locomotive production nearly doubled from 4,695 units (2004–2014) to 9,168 units (2014–2024), while coach manufacturing increased from 32,000 to 54,000 units during the same period.
- Vande Bharat Trains: These semi-high-speed trains symbolize India’s capability for high-speed rail manufacturing with strong domestic production backing.
Financial and Policy Reforms
Rail Budget Merger:
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- Reform: The integration of the Railway Budget with the General Budget ended fragmented allocations and enabled cohesive planning for large-scale projects.
- Result: Focused investments have streamlined resource allocation for infrastructure development.
Gross Budgetary Support (GBS):
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- Growth: GBS increased from ₹1.56 lakh crore (2004–2014) to ₹8.25 lakh crore (2014–2024), reflecting expanded financial support for ambitious projects like electrification and DFCs.
Freight Revenue Model:
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- Cross-subsidization: Freight revenues continue to subsidize passenger fares. In FY2024 alone, freight revenue reached ₹1.8 trillion, enabling affordability for passengers while maintaining profitability.
BROADER ECONOMIC AND GEO-STRATEGIC IMPACT
National Integration and Regional Connectivity
Jammu & Kashmir Link:
The Udhampur-Srinagar-Baramulla Rail Link (USBRL) project, nearing completion in 2025, represents a paradigm shift in India’s infrastructure development and national integration approach. This 272 km rail link, featuring engineering marvels like the world’s highest railway bridge over the Chenab River, will:
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- Enhance all-weather connectivity to the Kashmir Valley
- Boost regional economic development by facilitating trade and tourism
- Strengthen national security through improved logistics for troop movement
The project’s completion is expected to reduce travel time between Jammu and Srinagar from 12 hours to just 5-6 hours, catalyzing socio-economic transformation.
Enhancing Accessibility:
Indian Railways continues to be the lifeline of the nation, serving as a critical instrument for inclusive growth and regional balance:
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- Daily ridership of 22.4 million passengers underscores its role in economic mobility
- Cross-subsidization model enables affordable passenger fares while maintaining profitability through freight revenues
- Expansion of track kilometers from 68,000 km to 132,000 km has significantly enhanced capacity and efficiency
International Collaborations and Exports
Export of Rolling Stock and Consultancy:
Indian Railways is leveraging its expertise to become a global player in the railway sector:
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- Export orders worth ₹2,100 crore secured, including ₹1,400 crore from Sri Lanka and ₹700 crore from Mozambique
- PSUs like RITES offering consultancy services for railway projects across Asia and Africa
Technology Partnerships:
India is actively engaging in cutting-edge railway technologies through international collaborations:
‘Make in India’ & Localisation:
The railway sector is emerging as a showcase for India’s manufacturing capabilities:
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- CRRC India achieving over 75% domestic content in metro coach manufacturing for Bangalore Metro.
- Joint venture between Ramkrishna Forgings and Titagarh Wagons to produce 228,000 forged wheels annually, aiming to make India an exporter within 3-5 years.
Visionary Connectivity Initiatives
BBIN and Act East Policy:
Indian Railways is playing a pivotal role in enhancing regional connectivity:
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- Bangladesh-Bhutan-India-Nepal (BBIN) initiative aims to create seamless rail connectivity in South Asia.
- Proposed rail link from Jiribam (Manipur) to Mandalay (Myanmar) to boost connectivity with Southeast Asia.
- Restoration of Haldibari (India) – Chilahati (Bangladesh) rail link to enhance cross-border trade.
IMEC Initiative:
The India-Middle East-Europe Economic Corridor (IMEC) represents a bold vision for transcontinental connectivity:
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- Proposed Rail-Sea-Rail network to connect India with the Arabian Gulf and Europe.
- Integration of railway, maritime, and road transport routes to create a comprehensive economic corridor
- Potential to revolutionize regional integration and bolster trade between Asia, the Middle East, and Europe
THE CHALLENGES:
Managing Rising Demand
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- Population Growth and Urbanization:India’s growing population and rapid urbanization have increased demand for rail services, particularly in megacities and high-density routes. Passenger traffic surged to 750 crore travelers annually in FY 2024-25, necessitating capacity enhancement.
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- Freight Congestion: Freight loading reached a record 1512 MT in FY 2022-23, but rising demand risks overcrowding existing infrastructure.
Balancing Freight and Passenger Services
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- Cross-Subsidization Model: Indian Railways relies on freight revenues to subsidize passenger fares, but competitive freight rates are essential to retain market share amidst competition from road and air transport.
- Freight Logistics Efficiency: Delays in freight delivery impact reliability and competitiveness, especially for bulk commodities like coal and cement.
Technological Upgrades and Maintenance
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- Aging Infrastructure: Many tracks and rolling stock require modernization to meet global standards. Maintenance time is limited due to high utilization rates.
- Safety Concerns: Despite advancements like the KAVACH system, accidents due to track defects or signal failures remain a concern.
Funding and Public-Private Partnerships (PPPs)
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- Budgetary Constraints: Despite record allocations of ₹2.4 lakh crore in FY 2023-24, reliance on government funding limits flexibility for large-scale projects.
- Investor Confidence: Transparency and efficiency in project execution are critical to attract private investment.
THE WAY FORWARD:
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- Capacity Augmentation: Expand track kilometers beyond the current 132,000 km through focused investments in high-density corridors.
- Integrated Transport Systems: Collaborate with metro networks and road transport systems to decongest urban rail routes. Japan’s Shinkansen model demonstrates how dedicated passenger corridors can alleviate congestion.
- Dedicated Freight Corridors (DFCs): Expand DFCs beyond 2,741 km to segregate freight from passenger traffic, improving logistics efficiency.
- Time-Sensitive Freight Solutions: Introduce express freight services for high-value goods. The NITI Aayog recommends leveraging AI-driven predictive analytics for better freight scheduling and logistics optimization.
- Digital Modernization: Adopt technologies such as Online Monitoring of Rolling Stock Systems (OMRS) and Smart Yards equipped with Hot Box Detectors for predictive maintenance.
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- R&D Investments: Focus on next-generation propulsion systems like hydrogen trains and hyperloop technology. Germany’s TÜV SÜD audits of India’s hydrogen trains exemplify international collaboration for safety compliance.
- Diversified Funding Models: Explore bond markets, sovereign wealth funds, and PPPs for infrastructure financing.
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- Global Collaborations: Partner with international firms for technology transfer and co-financing of projects like bullet trains. The Delhi Metro PPP model demonstrates how private sector participation can enhance operational efficiency.
THE CONCLUSION:
The motto ‘Viksit Rail, Viksit Bharat’ encapsulates the ongoing journey towards developing a world-class railway system that supports national growth ambitions. Indian Railways’ transformation serves as a model for other nations aspiring to leverage rail infrastructure for economic development. With continuous milestones achieved, Indian Railways stands poised as a cornerstone of India’s future progress.
UPSC PAST YEAR QUESTION:
Q. The setting up of a Rail Tariff Authority to regulate fares will subject the cash strapped Indian Railways to demand subsidy for obligation to operate non-profitable routes and services. Taking into account the experience in the power sector, discuss if the proposed reform is expected to benefit the consumers, the Indian Railways or the private container operators. 2014
MAINS PRACTICE QUESTION:
Q. Indian Railways has undergone significant transformation in the past decade yet faces multifaceted challenges as it strives to balance modernization with rising demand. In light of this statement, examine the key achievements and persistent challenges of Indian Railways.
SOURCE:
https://www.dailypioneer.com/2025/columnists/indian-railways–powering-india—s-growth.html
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