The Indian Railways has been ranked as the third largest organisation in the world under a single management and one of the top employers employing more than 1.39 million employees. It is the largest passenger carrier and fourth largest freight carrier globally according to a report by the Ministry of Railways. Acting as one of the major promoters to the growth of the Indian economy, Indian Railways is the largest rail network in Asia covering a total of distance of 6332 kilometers.
The Indian Railways has registered a growth rate of 8.24 per cent in the profits for the period April 2010 – February 2011 and its earnings rose to US $ 18.68 billion as compared to the US$ 17.26 billion during the same period. The total foreign direct investment (FDI) inflows into the Railways and its related components industries have grown due to the 100 per cent FDI sanction by the Indian government. The US$ 13.01 billion investment for the annual plan of 2011-12 is the highest ever investment made in a single year for the Indian Railways as stated in the Railway Budget for 2011-12.
The Indian railways have earned total revenue of US$ 5.22 billion for the financial year 2010–2011 as compared to US$ 4.74 billion for the last fiscal period. Also, the revenues for other related departments within the Indian Railways were US$ 508.4 million between April 2010 - February 2011, as compared to US$ 461.22 million revenue during the same period in the last financial year. There was a net increase by 6.33 per cent in the total number of passengers booked by the Railways in 2010-2011 as compared to 2009-2010.
The Indian Railway budget for 2011-12, highlights some of the following initiatives by the Government. They are as follows -
In order to promote higher investments, the Indian railways have introduced several policies to assist its business associates. Some of the policies by the Ministry of Railways are –
The Indian Government and the Ministry of Railways has been engaged in talks to develop a US$ 700 million safety strategy to set up anti collision systems, enhance the existing signaling system, improved telecommunication services, and highly mechanised services of railway tracks. This safety plan has already been submitted to the Prime Minister’s office for approval.