The role of railways in India’s economy is immense. The role of railways in India’s economy can be gauged from the railway budget presented separately in Parliament. Indian Railways has been making an outstanding contribution to the development and progress of the country for decades.
The way Indian Railways has served the country, it has also shown considerable economic gains. Recently, a lot of efforts have been made to change the landscape of the Indian Railways world with the promptness of Prime Minister Narendra Modi. Trains like The Vande Bharat Express are being built with indigenous technology.
During Modi’s tenure, the economic gains of the country’s railway sector have not only decreased significantly but are also gradually on the verge of losses. Indian Railways has taken up various projects for infrastructure development due to the increase in the economic losses of Indian Railways though they have required a very long time to complete them.
The operating ratio of Indian Railways is 98.65 per cent in the current year. Which means the railways had to spend Rs 98.65 to earn Rs 100. That is, the income that has been made ends in meeting the expenses. In such a situation, the amount of money spent on improving the railway infrastructure has come down.
Freight services are one of the major sources of income of Indian Railways. But recently Indian Railways has failed in this sector as well. In the current financial year, the railways earned Rs 10,500 crore less than the target of freight services. The only success of The Indian Railways has been in reducing the cost of the pension sector.
Indian Railways is one of the largest number of government sectors in the country with the largest number of people employed. 2023, 1st February , 11,75,925 employees are working in the Indian Railways, according to data submitted by Railway Minister Ashwini Vaishnaw in the Lok Sabha in 2023.