Indian Economy News

Freight earning in Indian railway reached Rs. 1 lakh crore (US$ 12.01 billion) and intends to earn over Rs. 1.5 lakh crore (US$ 18.01 billion) in this fiscal year

  • IBEF
  • November 16, 2023

After recently generating Rs. 1 lakh crore (US$ 12.01 billion) from freight, the Indian Railway is expected to reach its income objective of Rs. 1.5 lakh crore (US$ 18.01 billion). Despite a 6.5% increase in total revenues for the current fiscal year, the revenues do not meet the over 9% annual growth objective that was set for 2023–24. Despite this, officials at the railways are hopeful that they will meet the annual target because they anticipate a boost in economic activity following the monsoon, which would lead to more cargo loading.

Up to October 13, the fiscal year ended with passenger revenue of Rs. 43,101 crore (US$ 5.17 billion). The installation of trains such as the Vande Bharat has resulted in a 7% rise in earnings of Rs. 31,875 crore (US$ 3.82 billion) from reserved passengers. The total number of passengers has decreased to Rs. 47.4 crore (US$ 0.56 million), a 4.7% decline. This suggests that there has been an increase in revenue per passenger.

Earnings from the unreserved category have also seen a positive growth of 3.8%, reaching Rs. 11,326 crore (US$ 1.36 billion). The number of passengers in this category has increased by 12%, totaling Rs. 366 crore (US$ 44 million).

Railway data indicates that during this fiscal year up until October 14, goods loading grew by 3.7% to 940 million tonnes (MT). An important source of income, coal has increased by 3.3% to produce around Rs. 51,000 crore (US$ 6.12 billion), while its loading has increased by 5.5% to 463 million tonnes.

Railway authorities are optimistic that they will meet the annual revenue target because of the sustained growth in goods loading and the favourable economic outlook.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.