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Indian railways are known to be the backbone and lifeline of our economy. India’s railways network is the fourth largest in the world and spreads across thousands of kilometres, and covers almost the entire country. It transports both passengers and cargo over large distances and remains the most preferred mode of transportation of maximum Indians for its low cost and efficient operations.
As India’s economic conditions are improving, the passenger demand is increasing, which is adding to the profitability of railways. In this article, we will go through the Indian railway’s industry analysis by looking at the Indian railways report 2021 and Indian railways statistics 2020.
Indian railways industry analysis
The railways in India are one of the biggest employers in the country and the 8th largest employer globally. India’s railway network is the fourth largest in the world, behind the USA, China, and Russia. In terms of freight-carrying, it stands at number four in the world. The railway track is a whopping 126,366 km long network. There are over 7330 railway stations in the country.
The Indian government has ambitious plans to develop the railway sector. Before delving into that, let’s first see the Indian railways report 2021 and Indian Railways Statistics 2020.
Report and Statistics
In the year 2021-2022, the railways transported freight of up to 1029.94 MT, which is 18% more as compared to 2020-2021. In the financial year 2020, almost 2/3rd of the total revenue of the Indian railways came through freight loading. The passenger loading accounted for around 28% of the total revenue. In 2022, the freight revenue accounted for 75% of the total revenue earned by the railways.
In the financial year 2022, $23.3 billion worth of revenue was earned despite the pandemic in place. This was significantly higher than the revenue of 2021, which stood at $16.89 billion.
The speed of freight-carrying trains increased to 44 km/hour in 2021. It stood at 24 km/hour in 2020. It is a significant increase in speed that has reduced the transportation time and thus increased the reliability of railways. The punctuality performance has also been on a steady rise.
Wi-Fi networks have been installed on many lines to improve network connectivity and provide facilities to passengers.
MoUs and partnerships have been signed with international bodies too. In May 2021, a financial contract was signed between the GoI and European Investment Bank under which the European Investment Bank would invest US$ 182.30 million in the Pune Metro Rail project.
A Memorandum of Understanding was signed between India and Nepal in October 2021 to construct a new railway line worth $3.15 billion. This would connect Nepal’s capital Kathmandu to Raxaul, an Indian town.
Future Plans
The government has envisioned that by 2024, the entire railway network will operate on electricity. The pace of electrification has been on a steady rise over the years. This would improve the overall operations of the railways.
There are also plans to disinvest IRCTC, i.e., sell some of its stake to private players. It plans on generating more revenue by adding more air-conditioned coaches, which will add to the profits.
It is also at the forefront of sustainable development. There are plans to install solar panels at thousands of railway stations to harness solar power.
Over the next three years, there is a goal of manufacturing 400 new Vande Bharat trains. Currently, the Vande Bharat train runs from Delhi to Katra and from Delhi to Varanasi. With more Vande Bharat trains joining the fleet, their network would be expanded.
The PM Gati Shakti Programme was launched under which there is a plan to set up 500 multimodal cargo terminals.
$17 billion have been invested in introducing bullet trains by 2022. This would modernise the rail network and make the railway industry competitive globally.
There is also a plan to introduce coaches made up of aluminium. These would be lightweight coaches, which would further reduce the travel time between the two places.
Several stations are under the radar of redevelopment. Around 400 stations have been identified that would undergo remodelling and be equipped with modern facilities.
The Railway industry is taking necessary steps to cut down the carbon emission and make India carbon neutral by 2070, in alignment with the country’s goals.
Conclusion
Indian railways industry analysis shows a steady growth rate in the railways network and capacity. As the population increases and the economic condition of people improves, the demand for railways increases too. To keep up with this increasing demand, the government, in association with the Ministry of Railways, is taking all the possible measures to improve the supply. Over the years, the condition of trains and railway stations has improved significantly. This would only become better in future with the government’s ambitious plans to improve one of its best assets.
