As of FY14, Indian Railways had 12,617 passenger trains carrying over 23 million passengers daily. On the commercial front, 1,050.2 million tonnes (MT) of freight were transported via trains in FY14.
Revenue growth has been strong over the years; during FY07-14, revenues increased at a compound annual growth rate (CAGR) of 7.1 per cent to reach US$ 23.2 billion in FY14. It is expected to expand at a CAGR of 8.1 per cent during FY07-15. The revision in fare effective June 2014 is expected to increase railway revenues by US$ 1.3 billion in FY15.
Private sector companies are being encouraged to participate in rail projects, which were largely in the public domain. In December 2012, the Government of India approved 'participative models for rail-connectivity and capacity augmented projects', which allows private ownership of some railway lines. The government has been investing heavily to upgrade railway infrastructure. The sector has been witnessing increasing levels of foreign direct investment (FDI) participation over FY08-12. Cumulative FDI Inflows from April 2000 to January 2014 stood at US$ 507.3 million.
With increasing participation expected from private players, both domestic and foreign, due to favourable policy measures, freight traffic is expected to grow rapidly over the medium to long term. Railways has set a target of freight market share of 50 per cent by 2030 from 30 per cent in 2010.