Revamping Indian Railways | 28 Feb 2025

The recent New Delhi railway station stampede exposes systemic failures in Indian Railways that stem from indifference rather than resource constraints. Despite recurring tragedies at stations like Elphinstone Road (2017) and Allahabad (2013), the organization has failed to implement basic crowd control measures and safety protocols.  India urgently needs to address this systemic inertia to prevent future tragedies from being dismissed as unfortunate inevitabilities rather than preventable failures. 

How the Indian Railway Contributes to the Indian Economy?  

• Backbone of National Transportation: Indian Railways is the lifeline of the country, providing affordable and reliable transport to millions daily. 
  • It facilitates the movement of both passengers and goods across vast distances, playing a crucial role in economic integration.  
  • Indian Railways transports over 8 billion passengers annually, making it one of the busiest railway networks globally.  
    • During the Covid-19 pandemic, Indian Railways operated "Oxygen Express" trains to deliver medical oxygen across states, showcasing its logistical strength. 
• Economic Growth and Industrial Development: Railways serve as a crucial driver of economic growth by facilitating trade, commerce, and industrialization across the country.  
  • The transportation of raw materials like coal, iron ore, cement, and agricultural produce ensures the smooth functioning of industries.  
    • Efficient rail logistics reduce supply chain costs, enhancing the competitiveness of Indian manufacturing and exports.  
    • Mega infrastructure projects such as the Dedicated Freight Corridors (DFCs) aim to boost efficiency and economic productivity. 
  • CAG (2021-22) highlighted that coal alone accounts for nearly 50% of railway freight earnings, making industrial supply chains highly dependent on rail connectivity.  
• Employment Generation and Livelihood Support: Indian Railways is one of the largest employers in the world, directly employing millions and indirectly supporting many more in ancillary industries.  
  • It employs over 1.2 million people, making it the world's ninth-largest employer. 
    • It provides stable employment across various skill levels, from engineers and technicians to station managers and track maintenance workers. 
  • The expansion of railway infrastructure, station redevelopment, and manufacturing of new rolling stock create additional employment opportunities. 
    • Privatization and PPP models in railways are expected to generate further job prospects in operations and logistics 
• Rural Connectivity and Regional Development: Railways play a pivotal role in connecting remote and rural areas, integrating them with urban centers and markets. 
  • Improved railway infrastructure in underdeveloped regions enhances accessibility to education, healthcare, and employment opportunities.  
    • Special railway corridors such as the North-East Connectivity Project aim to boost regional development and national integration.  
  • In FY 2023-24, the railways have decided to redevelop 1,275 railway stations under the Amrit Bharat Station scheme 
  • The Vande Bharata Express expansion to Tier-2 and Tier-3 cities is a step toward improving accessibility and regional economic development. 
• Catalyst for Sustainable Development and Green Mobility: Railways offer an environmentally sustainable alternative to road and air transport by reducing carbon emissions and fuel consumption.  
  • The transition to full electrification and renewable energy integration aims to make Indian Railways carbon-neutral by 2030.  
    • 14 States/UTs have been 100% electrified by Indian Railways as of July 2023. 
  • Energy-efficient locomotives, electrified routes, and green initiatives such as bio-toilets are improving the railway sector’s sustainability footprint.  
    • Rail freight emits nearly 80% less greenhouse gas per ton-kilometer than road transport, making it a key player in India's sustainable mobility strategy. 
• Strengthening National Security and Strategic Mobility: Railways play a crucial role in national security by ensuring rapid troop movement and defense logistics in border areas.  
  • Dedicated railway lines and freight corridors aid in the quick mobilization of military supplies, vehicles, and personnel during emergencies.  
    • The construction of strategic railway lines in border regions, particularly in the Northeast and Ladakh, enhances defense preparedness.  
  • The Arunachal Frontier Highway is a landmark infrastructure project, connecting 12 districts along the LAC with China.  
• Urban Mobility and Decongestion of Road Networks: The expansion of metro rail and suburban rail systems in major cities is reducing congestion and improving urban mobility.  
  • Efficient mass transit options help reduce travel time, pollution, and road accidents in densely populated areas.  
    • The integration of metro, suburban, and regional rapid transit systems is fostering seamless multimodal transport networks.  
  • India achieved over 1,000 km of operational metro rail network, becoming the world's third-largest metro system after China and the US. 
    • The Rapid Transit System between Delhi and Meerut, set to open in 2025, will significantly cut travel time between the two cities. 
• Boost to Tourism and Cultural Integration: Railways enable affordable and convenient travel to India's diverse cultural, historical, and religious sites, promoting tourism.  
  • Special trains such as Bharat Gaurav Trains and luxury services like the Palace on Wheels attract both domestic and international tourists.  
    • Enhanced railway connectivity to pilgrimage sites, heritage locations, and ecotourism destinations boosts local economies.  

What are the Key Issues Associated with Indian Railways?  

• Deteriorating Financial Health: Indian Railways is facing severe financial stress due to a declining revenue surplus, increasing reliance on extra-budgetary resources (EBR), and unsustainable operating costs.  
  • The growing gap between expenditure and revenue has led to reduced internal resource generation, affecting long-term sustainability.  
    • Additionally, heavy cross-subsidization of passenger fares through freight earnings has distorted pricing mechanisms, making freight transportation less competitive. 
  • CAG (2021-22) reported the worst-ever Operating Ratio of 107.39%, meaning Railways spent ₹107.39 to earn ₹100, which would have been 109.36% if pension and asset renewal expenses were included.  
• Infrastructural Deficiencies: Frequent derailments, stampedes, and collisions point to gaps in infrastructure maintenance and safety oversight.  
  • Poor track renewal, outdated signaling systems, and overcrowded stations increase the likelihood of accidents.  
  • The huge backlog in asset replacement further exacerbates safety concerns, raising risks for millions of daily passengers. 
  • CAG (2021-22) flagged a ₹34,318.79 crore backlog in over-aged asset renewal. 
    • The Odisha Balasore triple train accident (June 2023) highlighted critical gaps in railway safety and signaling systems. 
  • The ‘Kavach’ anti-collision system, designed to prevent crashes, has seen slow implementation, with coverage limited to select routes 
• Poor Crowd Management and Station Infrastructure: Overcrowding at major railway stations, lack of adequate holding areas, and ineffective crowd control measures pose serious risks, especially during festivals or special events.  
  • The absence of proper barricading, unidirectional movement planning, and emergency response mechanisms increases the likelihood of stampedes. 
  • The February 2025 New Delhi railway station stampede, triggered by a last-minute train announcement, resulted in multiple casualties. 
• Freight Revenue Stagnation and Market Competition: Freight operations, which subsidize passenger losses, face increasing competition from road and air transport due to inefficiencies and high tariffs.  
  • Rail freight remains slow, lacks last-mile connectivity, and is heavily dependent on bulk commodities like coal, limiting revenue diversification.  
    • The shift towards renewable energy could reduce coal transportation demand, impacting freight earnings further. 
  • Govt records show that the rail share in freight transport has declined steadily from 85% in 1951, to 60% in 1991, and in 2022 it was only 27%. 
• Environmental and Sustainability Challenges: Despite electrification efforts, Indian Railways continues to rely on diesel locomotives in several regions, contributing to air pollution and carbon emissions.  
  • The push for 100% electrification is slow, with delays in infrastructure development and power procurement.  
    • Waste management at stations and inside trains remains inadequate, affecting cleanliness and sustainability goals. 
  • India's transport sector contributes to 12% of the country's greenhouse gas emissions with the railways accounting for about 4%.  
• Lagging High-Speed Rail and Bullet Train Projects: The ambitious Mumbai-Ahmedabad bullet train project has faced land acquisition hurdles, funding delays, and political opposition, setting back India's high-speed rail plans.  
  • Slow execution of semi-high-speed corridors (like Vande Bharat) and inadequate track upgrades further limit speed improvements across conventional routes.  
  • The bullet train project connecting Mumbai to Ahmedabad will be ready by 2022, a decade later it is only 30% complete, and the revised deadline is now 2028. 
• Mismanagement of Railway PSUs and Financial Viability Issues: Several Railway PSUs face declining profitability, mismanagement, and inefficiencies, affecting their ability to contribute to Indian Railways' growth.  
  • While some PSUs in financing and tourism have performed well, others in construction and logistics have seen declining returns.  
    • The falling return on equity and rising dependence on loans highlight deeper structural issues. 
  • CAG (2021-22) reported that return on equity for railway PSUs declined from 9.17% in 2017-18 to 7.53% in 2019-20.  

What Measures can be Adopted to Revitalise Indian Railways?  

• Financial Sustainability and Revenue Optimization: Indian Railways must shift towards a sustainable financial model by reducing dependency on extra-budgetary borrowings.  
  • Dynamic fare pricing, monetization of railway land assets, and increased private sector participation (as per Bibek Debroy Committee) in station development can enhance revenue streams. 
  • Freight tariff rationalization and last-mile connectivity solutions will make rail cargo more competitive. 
    • Strengthening Public-Private Partnerships (PPPs) in infrastructure projects can reduce fiscal burdens.  
• Safety Enhancement and Infrastructure Modernization: Railways must prioritize track renewal, bridge strengthening, and station decongestion to minimize accidents and improve operational efficiency.  
  • The widespread implementation of automatic train control systems like Kavach and centralized traffic control can significantly reduce human errors. 
  • Upgrading signaling infrastructure with AI-based predictive maintenance will enhance real-time monitoring.  
  • Comprehensive crowd management strategies, including better station design, holding areas, and automated entry-exit points, must be implemented.  
• Technological Advancements and Digitalization: Implementing AI-driven predictive maintenance, IoT-based asset monitoring, and blockchain-enabled freight tracking can boost efficiency and reliability.  
  • Expanding the reach of real-time passenger information systems, smart ticketing solutions, and integrated mobility apps will improve customer experience.  
  • Upgrading railway workshops with automation and robotics will optimize rolling stock maintenance.  
    • The full integration of financial and operational data under a unified digital platform will streamline railway administration. 
• Freight Sector Reforms and Multimodal Logistics Integration: Indian Railways must diversify its freight basket beyond coal by tapping into containerized cargo, automobile logistics, and express freight services.  
  • Dedicated Freight Corridors (DFCs) must be expanded with seamless connectivity to ports, highways, and inland waterways.  
  • Rationalizing freight tariffs and reducing terminal handling times will make rail transport cost-effective for industries.  
  • A National Logistics Grid under PM Gati Shakti integrating rail, road, and ports must be fast tracked to facilitate end-to-end cargo movement. 
• High-Speed Rail and Semi-High-Speed Expansion: The Mumbai-Ahmedabad bullet train project must be expedited while planning additional high-speed corridors along high-demand routes, building upon Rakesh Mohan Committee (2010).  
  • Track upgradation projects, including dedicated high-speed freight lines, should be prioritized.  
  • Indigenous manufacturing of high-speed rolling stock will reduce procurement costs and boost Make in India efforts.  
  • Land acquisition, financing models, and technology transfer agreements should be streamlined for faster implementation of high-speed rail projects. 
• Railway Station Modernization and Urban Mobility Integration: Stations must be transformed into multimodal transit hubs with seamless connectivity to metro networks, bus terminals, and airports.  
  • Infrastructure upgrades such as elevated concourses, automated ticketing, and congestion-free passenger movement areas are essential.  
  • Expansion of suburban and regional rail networks will decongest metros and provide faster commuting options.  
  • The Indian Railway Station Development Corporation (IRSDC) must be strengthened to accelerate station redevelopment projects. 
• Sustainable and Green Railways Initiative: Achieving 100% electrification with renewable energy integration will reduce dependency on fossil fuels and lower carbon emissions.  
  • Expanding solar and wind power installations across railway stations, workshops, and vacant land areas will enhance energy sustainability. 
  • Hydrogen-powered and battery-operated locomotives should be piloted as alternatives to diesel engines.  
  • Strengthening carbon credit mechanisms and green financing will support long-term sustainability goals..  
• Increased Private Sector Participation: Following the recommendations of the Bibek Debroy Committee, Indian Railways should open more avenues for private sector participation. 
  • Private investments in rolling stock procurement, railway catering, and logistics parks will enhance service quality and efficiency.  
  • Competitive bidding for high-demand routes can improve financial viability while reducing operational burdens on the government. 

Conclusion:

Indian Railways remains the backbone of India's transportation and economic infrastructure, but systemic inefficiencies, financial strain, and safety lapses continue to hinder its full potential. Addressing infrastructure deficits, enhancing crowd management, and prioritizing financial sustainability are crucial for long-term resilience. Leveraging technology, strengthening freight operations, and promoting green mobility can transform railways into a modern and efficient entity