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The 162-year-old Indian Railways (IR) is a national asset that operates more than 19,000 trains and 7,112 stations and is Asia’s second-largest and the world’s fourth-largest railway system.
By enabling geographic connectivity, citizen mobility, and commercial activity, as well as providing world-class logistics and transportation infrastructure, IR plays a critical role in facilitating the country’s economic and social development.
The Indian Railways’ organisational structure is divided into 17 zones, which are further subdivided into 68 divisions, each headed by a divisional headquarter.
With a workforce of 13 lakh people, the IR is also one of the country’s largest employers.
Railways in India
In India, railways are the primary mode of freight and passenger transportation.
Railways also enable people to engage in a variety of activities, such as business, sightseeing, pilgrimage, and the transportation of goods over long distances.
For more than 150 years, Indian Railways has served as a major integrating force, in addition to being a vital mode of transportation.
Railways in India connect the country’s economic life and speed up the development of industry and agriculture.
Physiographic, economic, and administrative factors have had a significant impact on the distribution pattern of the railway network in the country.
The northern plains, with their vast level of land, dense population, and abundant agricultural resources, provided the best conditions for their development.
However, a large number of rivers with wide beds necessitated the construction of bridges. Railway tracks are built through low hills, gaps, and tunnels in the peninsular region’s hilly terrain.
Despite these factors, the Indian railway system is expanding at a steady pace.
Indian Railways will be the third-largest in the world in five years, accounting for 10% of the global market.
One million jobs could be created by Indian Railways, one of the country’s largest employers.
Several businesses have benefited from railway support and expansion. The rise of the textile industry in Mumbai, the jute industry in Kolkata’s environs, and the coal industry in Jharkhand can all be attributed to the construction of railway networks.
Raw materials as well as finished goods are delivered to production sites by railways.
Railways have played a significant role in agricultural development. Agriculture was only able to become commercialised with the assistance of the railway. Farmers can now sell their agricultural products to far-flung locations, as well as sell them for a profit on the global market.
Perishable foods, agricultural implements, and other items can be transported quickly over long distances thanks to railways.
Growth in Indian Railways
India’s railway sector has a total track length of 126,366 kilometres, with 7,335 stations along a 67,956-kilometre route.
On a daily basis, the railways run approximately 13,523 passenger trains and 9,146 freight trains.
Indian Railways carried 8.1 billion passengers in the fiscal year ending March 2020. From January 1, 2021, to December 31, 2021, India’s railway sector loaded 1029.94 MT of freight, an increase of 18% over the previous year.
With over 1.3 million employees, Indian Railways is India’s single largest employer and the world’s eighth-largest.
In FY22, gross revenue was Rs 85,588.96 crore (US$ 11.44 billion) (until September 2021).
The Indian government has prioritised investing in railway infrastructure by enacting a number of investor-friendly policies, including Foreign Direct Investment (FDI), to improve freight and high-speed train infrastructure.
In fact, a number of domestic and international firms are considering investing in Indian rail projects.
Some initiatives taken by the government are as follows:
IR released a National Rail Plan for India – 2030 with the goal of creating a “future-ready” railway system by 2030. The plan’s goal is to build capacity ahead of demand so that it can meet future demand growth until 2050 while also increasing railways’ modal share in freight traffic to 45 percent.
India and Nepal signed an MoU (Memorandum of Understanding) in October 2021 for a proposed US$ 3.15 billion railway line connecting Kathmandu and Raxaul, India’s border town.
The Central Government approved the construction of a 235-kilometre semi-high-speed rail corridor between Pune and Nashik, Maharashtra, in June 2021. The project will cost Rs. 16,039 crores (US$ 2.20 billion) to build.
The arch closure of the under-construction Chenab Bridge, the world’s highest railway bridge, was completed in April 2021 by Indian Railways. Chenab Bridge will be 1315 metres long and 35 metres taller than Paris’ Eiffel Tower. The bridge’s total cost is estimated to be Rs. 1,486 crore, with a design life of 120 years.
The government allocated Rs. 110,054.64 crore (US$ 15.19 billion) to the Ministry of Railways in the Union Budget 2021-22.
The Indian Railways is looking forward to another year of infrastructure growth with innovative and sustainable initiatives in 2022, following unprecedented growth in 2021.
The significance of railways in the Indian economy
Freight revenues for Indian Railways were $16 billion in 2021.
By building infrastructure to support 45 percent of the economy’s modal freight share, India’s railway sector aims to contribute about 1.5 percent to the country’s GDP.
The Indian Railways saw an 18% increase in freight loading from 2021-22 to December 31, 2021.
According to the recently released Economic Survey, India’s railways will become one of the most important sectors in the country’s growth.
In 2021-22, the Capital Expenditure (Capex) will be five times higher than in 2014. By 2023, the Indian Railways want to be completely electrified.
The National Railway Plan envisages the creation of a future-ready railway system capable of not only meeting passenger demand but also increasing the modal share of railways in freight to 40-45 percent from the current level of 26-27 percent.
Conclusion
For both passengers and goods, the railway is one of the most efficient and cost-effective modes of transport. With the large number of passengers who use them on a daily basis, they are the economic lifeblood of India. They’re also important for transporting coal, metals, petroleum, chemical manures, and food grains. Indian Railways is also the preferred carrier for the automobile industry.
