The Indian Railways is among the world’s largest rail networks. The Indian Railways route length network is spread over 115,000 km, with 12,617 passenger trains and 7,421 freight trains each day from 7,349 stations plying 23 million travellers and 3 million tonnes (MT) of freight daily.
Performance for the year
During 2017-18, the passenger traffic of Indian Railways reached 7.58 billion. The overall revenue of Indian Railways stood at US$ 23.63 billion during 2017-18. The passenger earnings grew to US$ 6.8 billion and the freight earnings grew to US$ 15.6 billion during the same period. Revenue growth for Indian Railways has been strong over the years.
Indian Railways’ revenue increased at a CAGR of 10.14 per cent to US$ 29.08 billion in FY18. Freight and Passenger earnings are the two largest components of revenues for Indian Railways. In FY17, Indian Railways generated US$16.9 billion in earnings from commodity freight traffic, much higher than passenger earnings of US$7.3 billion.
In the last ten years, revenues from the commodity freight and passenger segment have expanded at a CAGR of 9.57 per cent and 10.42 per cent, respectively. Revenue from freight and passenger traffic during 2017-18 stood at US$ 15.6 billion and US$ 6.8 billion respectively.
In April-March FY2017, the revenue earnings of IR declined 0.5% to Rs 164119.32 crore, while snapping 4.6% growth recorded in April-March FY2016. Further, the IR revenues have been below the budget target of Rs 169268.07 crore for FY2017. The goods revenue dipped 4.6% to Rs 105562.17 crore, while the passenger revenue rose at moderated pace of 4.6% to Rs 47449.75 crore.
The Indian Railways is aiming to invest around USD 500 billion in the next 10 to 12 year period to increase the capacity anticipating better economic performance and growth of the country.