With strategic investments, technological advancements and a visionary public policy approach, Indian Railways is redefining connectivity, efficiency, and sustainability
The Indian Railways, often regarded as the crouching tiger of India’s growth story, is one of the world’s most remarkable yet under-discussed examples of how strategic investments in infrastructure and connectivity-focused public policy can yield exponential dividends for national development. The progress made by Indian Railways (IR) over the past decade (2014-2024) could well be considered its golden period of growth and transformation, making it one of the fastest-growing railway networks globally.
What sets India’s railway story apart, making it a lesson for countries and regions with similar growth ambitions? The key lies in a public policy approach best summarised as: planning for the railways has been done with Bharat and for Bharat.
This approach recognizes that the railway system must remain both world-class and affordable, fulfilling its essential role as the common person’s mode of transport while simultaneously supporting India’s industry, commerce, and the ambition of a $5 Trillion economy. Every day, 22.4 Million people rely on Indian Railways as an integral part of their economic lives, and the system must grow in tandem with their aspirations.
This transformation required revolutionising business operations. Historically, Indian Railways faced criticism for slow modernisation and infrastructure constraints. However, many fail to recognise the crucial shift in priorities. While the total network length has gradually increased to 68,000 km since 1950, a more significant achievement is the expansion of track kilometers, which has grown to an impressive 132,000 km today, enhancing capacity and efficiency.
A decade-on-decade comparison highlights the scale of progress. Between 2014 and 2024, Indian Railways laid 31,000 km of new tracks compared to just 14,900 km in the preceding decade (2004-2014). Similarly, cumulative freight loading surged from 8,473 million tons to 12,660 million tons, revenue generation soared from `8.64 Lakh Crore to `18.56 Lakh Crore, and electrification expanded from 5,188 km to over 44,000 km, significantly reducing carbon footprints. The development of world-class Dedicated Freight Corridors (2,741 km, compared to none in the previous decade) has further bolstered efficiency. Locomotive production nearly doubled from 4,695 to 9,168 units, while coach manufacturing rose from 32,000 to 54,000 units. Across all productivity and performance indices, Indian Railways has set new benchmarks.
A major reform was the merger of the Railway Budget with the General Budget-a decision still lamented by some who hold onto outdated perspectives. Historically, inadequate financing led to a thin spread of resources across a vast backlog of pending projects. However, focused investments have changed the landscape, with Gross Budgetary Support (GBS) soaring to `8.25 Lakh Crore over the last decade, compared to just `1.56 Lakh Crore in the preceding 10 years.
One of the most significant upcoming milestones is the completion of the railway link to Srinagar, featuring some of the world’s tallest bridges and longest tunnels, seamlessly connecting the valley to the national network. Additionally, Indian Railways is on track to become the first major railway system to achieve 100 per cent electrification, ensuring seamless connectivity while reducing dependence on fossil fuels and drastically cutting carbon emissions.
The proliferation of the KAVACH anti-collision system across the network is the most extensive implementation in any mixed-traffic railway system globally. Meanwhile, Indian trains are surpassing “world-class” standards, blending advanced global technologies with domestic priorities to create safer, faster, cleaner, and more comfortable travel experiences-all while maintaining affordability to keep rail services accessible to all.
A unique aspect of Indian Railways’ business model is its ability to subsidise passenger travel using freight revenues while remaining profitable. In contrast, major railway systems in developed countries are either privatised with the freedom to set high tariffs or reliant on government subsidies to cover losses. Despite stiff competition from other transportation modes and its dependence on derived demand, Indian Railways continues to meet ambitious revenue targets, delivering record-breaking performance year after year.
This transformation may come as a surprise to those who remember an era when anything labeled “export quality” was reserved for affluent nations, while Indians settled for substandard goods and services. Generations of citisens were conditioned to lower their expectations, even for crucial services like Indian Railways. However, post-2014, the government has adopted a progressive and ambitious approach toward infrastructure development. A modern India demands a national transporter free from outdated constraints, fostering innovation and global competitiveness. This progress has been achieved while maintaining high levels of localisation for essential railway components and scaling up domestic manufacturing to unprecedented levels. While Vande Bharat trains have captured public attention, Indian Railways’ transformation extends far beyond these high-speed marvels.
India is now set to roll out the world’s most powerful hydrogen trains in the coming months, a feat comparable to Operation Smiling Buddha, which established India as a nuclear superpower. At 1,200 horsepower, these locomotives far surpass those being developed by “advanced” nations still struggling with half as much power. To ensure safety, Germany’s TÜV SÜD has conducted third-party audits of India’s hydrogen trains.
With the establishment of the world’s longest hyperloop test facility, India is emerging as a global leader in futuristic transportation. Following the completion of a 422-meter test track in December 2024, India is now developing a
nearly 50-km test track to assess hyperloop’s commercial viability. Agreements with SwissPod (backed by Elon Musk) and France’s SYSTRA underscore India’s commitment to leading hyperloop innovation. Even China has recognised the strength of the ‘Make in India’ initiative. CRRC India is actively localising metro coach manufacturing for the Bangalore Metro, achieving over 75 per cent domestic content, with plans to reach 90 per cent. Furthermore, the facility is set to handle export orders for West Asia and Africa.
While bullet train rolling stock supply agreements with Japan are being finalised, India has already embarked on domestic high-speed train manufacturing. Beyond rolling stock, Plasser India, a subsidiary of Austria’s Plasser and Theurer, is revolutionising railway maintenance with locally produced track machines, enhancing self-reliance while supporting global exports.
Indian Railways is also spearheading ambitious connectivity projects. The BBIN initiative aims to enhance rail connectivity across South Asia, while the ‘Act East Policy’ envisions linking India with ASEAN. The ‘IMEC initiative’ is set to establish a Rail-Sea-Rail corridor connecting India with Europe. Meanwhile, Indian Railways’ public sector undertakings (PSUs) are exporting rolling stock, undertaking track infrastructure projects, and providing consultancy services across Asia and Africa. With its new trains, modernised stations, faster speeds, dedicated freight corridors, and high-speed networks, Indian Railways has solidified its place as a world-class transportation system. This success story serves as a model for other nations yet to fully leverage the transformative potential of railways in national growth.
The motto ‘Viksit Rail, Viksit Bharat’ (Developed Railways, Developed India) is not just a vision for 2047, it is an ongoing journey for Bharat and with Bharat, with new records, milestones, and achievements being set every day.
(The writer is a distinguished fellow at CRF and former member, Traffic Railway Board. Views expressed are personal)
