Trade Analytics
Railways
India's rail network was the third largest in the world in FY18.

Indian Railways: Sectoral Presentation & Analysis

Latest update: June, 2018

  • In the last 10 years, revenues from the passenger segment expanded at a CAGR of 10.42 per cent, with the total revenue earnings in FY17 totalling to around US$ 7.2 billion. Passenger earnings stood at US$ 6.8 billion during April-February 2017-18.
  • 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.
  • With eight metro rail networks spread over a length of 370 kilometres (km) and over two dozen metro projects lined up, India’s metro rail network is expanding at a fast pace. The Government of India has allocated US$ 2.21 billion for metro projects in Budget 2018-19.
Growth

Notes: CAGR – Compound Annual Growth Rate, FY – Indian Financial Year (April–March), F – Forecast, FY18*- Up to February 2018, *CAGR is up to FY17
Source: Ministry of Railways, Aranca Research

  • Increase in the demand for passenger trains is supported by urbanisation, improving income standards, etc
  • India Railways is collaborating with Russian Railways to work on 575-km long stretch between Secunderabad and Nagpur, which would allow the trains to run at speeds of more than 200 km/hr
  • In January 2017, the Indian Railways and UNESCO signed an agreement, for setting up a rail link between neighbouring countries like Bhutan, Nepal, Bangladesh and Myanmar.
  • In March 2017, the government signed the TIR – Transport Internationaux Routiers or International Road Transports, under the United Nations Economic Commission for Europe (UNECE), to ease trade with other countries.
Growth

Notes: CAGR – Compound Annual Growth Rate, E – Estimate, FY – Indian Financial Year (April–March), FY181-Up to February
Source: Make In India, Ministry of Railways, Aranca Research

Last Updated: June, 2018

India has the world's third-largest railway network under single management. As of 2016-17, India’s rail network had a total length of 67,368 km.

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. Indian Railways’ increased at a CAGR of 9.66 per cent during FY07-FY18 to US$ 27.71 billion in FY18. Freight and Passenger earnings are the two largest components of revenues for Indian Railways. In FY18, Indian Railways generated US$15.70 billion in earnings from commodity freight traffic, much higher than passenger earnings of US$7.55 billion. In the last ten years, revenues from the commodity freight and passenger segment have expanded at a CAGR of 9.88 per cent and 3.71 per cent, respectively. Passenger earnings and freight earnings during April 2018 stood at US$ 0.63 billion and US$ 1.39 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. Government of India’s focus on infrastructure is a major factor which will accelerate growth of railways.

Indian Railways Industry Report (June, 2018)

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Indian Railways Industry Report (May, 2018)

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Click to access the Railways Industry Archived Report

Indian Railways

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

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