Trade Analytics
Railways is aiming at $500 billion investment in next 10-12 years to increase capacity in anticipation of faster economic growth.

Indian Railways: Sectoral Presentation & Analysis

Latest update: February, 2018

  • Revenue growth has been strong over the years; during FY07–16, revenues increased at a CAGR of 6.4 per cent to US$ 25.2 billion in FY16
  • Revenues from the sector are estimated to reach to US$ 44.5 billion by the end of FY20
  • Revenues would expand at a CAGR of 9.07 per cent during FY07–20E
  • Indian Railway sector aims to boost passenger amenities
  • In March 2017, Railways started a new segment of revenue generation channel through auctioning for advertising and branding contracts on 1000 trains. The front running brands are to sign this contract for 5 years.

Note: CAGR – Compound Annual Growth Rate, FY – Indian Financial Year (April–March)
Source:Vision 2020, Ministry of Railways

  • In the last 8 years, revenues from the passenger segment expanded at a CAGR of 6.9 per cent, with the total revenue earnings in FY16 totalling to around US$ 6.9 billion
  • Indian Railways generated US$ 16.9 billion in earnings from commodity freight traffic during FY16
  • Increasing carrying capacity, cost effectiveness, improving quality of service will support the increment in the share of Railway in the freight movement from 35 per cent to 50 per cent by 2020
  • As of February 2017, Indian Railways to manufacture semi high-speed, 160 kmph “world-class” train under Make in India initiative, comprising 16 fully air-conditioned coaches. The new train will be manufactured at half of the import cost, at the Integral Coach Factory, Chennai, Tamil Nadu.

Notes: CAGR – Compound Annual Growth Rate, FY – Indian Financial Year (April–March),
Source: Ministry of Railways



Last Updated: February, 2018

India has the world's third-largest railway network under single management. Indian Railways is planning to launch an integrated mobile application for availing all travel-related services such as hiring taxis, pre-ordering a meal, requesting for porter services, lodging at a retiring room etc.

In collaboration with the Government of Japan, a high speed passenger corridor project between Ahmedabad to Mumbai was undertaken in Railway Budget 2016-17. Construction work has already begun and the total cost of the project is estimated at US$ 14.52 billion. The project is estimated to be operational by 2022.

Revenue growth for Indian Railways has been strong over the years. During FY07-17, revenues increased at a Compound Annual Growth Rate (CAGR) of 9.8 per cent to reach US$ 25.62 billion in FY17. Revenues stood at US$ 18.2 billion during April-December 2017 and are expected to expand at a CAGR of 12.12 per cent during FY07–20E. 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$7.3 billion. In the last ten years, revenues from the commodity freight and passenger segment have expanded at a CAGR of 9.57 per cent and 10.42 per cent, respectively. Revenue from freight and passenger traffic during April-December 2017 stood at US$ 12.6 billion and US$ 5.6 billion respectively.

With increasing participation expected from private players, both domestic and foreign, due to favourable policy measures, both passenger and freight traffic is expected to grow rapidly over the medium to long term.

Sectoral Presentation (February, 2018)

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Indian Railways

Earnings from freight (in US$ billion
Freight Traffic Projections on Dedicated Freight Corridor (in MMT)


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