Before 2014, Indian Railways (IR) faced years of underinvestment, averaging only around Rs 250 billion annually. Recognising this, the union government significantly increased capital expenditure between 2014 and 2025, raising the railway budget to approximately Rs 2.5 trillion. This sustained and methodical investment has focused on modernising infrastructure, enhancing safety, accelerating project execution and improving passenger amenities. At recent industry events, Ashwini Vaishnaw, Union Minister of Railways, shared his views on the improving state of IR, the importance of safety and sustainability, and key government initiatives in the sector. Edited excerpts…
Operational performance
IR’s financials, which had been severely impacted by Covid-19, have now stabilised. In 2024-25, the sector recorded a revenue of around Rs 2.78 trillion and expenditure of approximately Rs 2.75 trillion. Since 2022-23, IR has been meeting its major expenses through its own income. While the passenger segment remains heavily subsidised, earnings come primarily from the freight segment. For every passenger km, the cost incurred by IR is Rs 1.38, but only 73 paise is recovered through fares, resulting in a subsidy of about 47 per cent. Despite this, IR continues to offer one of the most affordable services globally. For a 350 km journey in general class, the fare in India is Rs 121, much lower than other Asian countries. In the western countries, fares are around 10-20 times higher. IR ensures that passengers receive safe, reliable and good quality services at the lowest possible cost.
Performance of the freight and passenger segments
In 2024-25, IR ranked among the top three railways globally in terms of freight transport, carrying 1,617 million tonnes (mt) – comparable to the US, with China slightly ahead. Passenger traffic rebounded strongly post-Covid, crossing 720 million passengers in 2024-25. A major transformation in the sector came through the Gati Shakti Cargo Terminals initiative. Multimodal logistics, once hindered by complex processes, saw significant reforms in December 2021, streamlining approvals and accelerating development. As a result, 108 multimodal cargo terminals have been completed in a short period. One notable example is the Maruti Suzuki terminal, inaugurated in June 2025. Spread over 45 acres, it has the capacity to transport around 400,000 cars annually.
“Among the most iconic achievements is the completion of the Chenab Bridge in ammu & Kashmir. Standing 35 metres taller than the Eiffel Tower, it is now the highest railway bridge in the world.”
Redefining railway infrastructure
IR has achieved several major milestones in recent years. Between 2014 and 2025, over 34,000 km of new tracks were constructed, more than the entire railway network of Germany. Additionally, 50,000 km of existing tracks were replaced with stronger, higher-quality rails, significantly enhancing safety. Further, more than 12,000 flyovers and underpasses were built, addressing issues like waterlogging in rural and small-town areas.
Among the most iconic achievements is the completion of the Chenab Bridge in Jammu & Kashmir, which connects the Kashmir Valley to Jammu and the rest of India. Standing 35 metres taller than the Eiffel Tower, it is now the highest railway bridge in the world. Built in a high seismic zone and capable of withstanding wind speeds of up to 250 km per hour, it features a foundation half the size of a football field and used approximately 30,000 tonnes of steel. The Anji Bridge nearby is another feat of engineering.
From its inception until 2014, IR had constructed only about 125 km of tunnels across the country. However, between 2014 and 2025, this length increased significantly to around 460 km. The sharp rise underscores the pace of infrastructure development, particularly in challenging terrain such as the Himalayas, where tunnel construction was once constrained by complex geological conditions but has now witnessed remarkable progress.
Additionally, major bridge projects have been completed across key rivers. Four bridges have been built on the Ganga river (at Prayagraj, Ghazipur, Patna and Munger), with construction under way for three more. In West Bengal, the Jubilee and Pamban bridges are now complete. On the Brahmaputra river, the Bogibeel bridge is operational, and Saraighat has been sanctioned.
Building a safer railway network
IR has placed a significant emphasis on safety through a combination of advanced technology, infrastructure upgrades and capacity building. Key initiatives include the use of longer, high-strength rails, electronic interlocking systems, fog safety devices, thick web switches and the elimination of unmanned level crossings. These measures, along with improved maintenance and extensive staff training, have led to a 92 per cent reduction in weld failures and a 91 per cent reduction in rail fractures, from around 2,500 annually in 2013-14 to just 250 at present. In 2025-26, approximately Rs 1.16 trillion has been allocated for investment by IR under safety initiatives through revenue and capex. Due to the steps taken and the focus on safety, there has been a significant reduction in accidents and derailments.
A major highlight is the large-scale roll-out of the Kavach system, India’s indigenous automatic train protection technology. Work is under way to install Kavach on 10,000 locomotives and over 15,000 km of tracks in phases. Over 20,000 field staff have been trained, and MoUs have been signed with 13 engineering colleges for specialised training. Kavach is not just a device, it involves building an entire telecom-like infrastructure, including towers every 4-5 km, trackside devices every 100 m, data centres at stations and central integration. Despite the complexity, IR is committed to completing this roll-out within the next five to six years, half the time taken by developed nations with smaller networks.
Focus on passenger convenience
Modern and comfortable trains such as the Vande Bharat and Amrit Bharat have been introduced as part of IR’s upgrade initiatives. A standout feature of the Vande Bharat trains is noise reduction – they produce hundred times less noise than aircraft due to a specially designed bogie (underframe). This advanced design significantly reduces vibration and noise, typically transferred from the wheel-track interaction into the coach. The bogie system used exceeds global standards, offering passengers a quieter and smoother journey.
Amrit Bharat trains are fully non-air conditioned (AC) and incorporate several modern features of Vande Bharat, such as semi-permanent/automatic couplers, fully covered gangway coaches with a new design and charging points. A total of 100 Amrit Bharat trains are currently under construction. Further, for short-distance travel, about 50 Namo Bharat trains, both AC and non-AC, are being developed to serve routes between smaller cities.
A historic decision has also been made to upgrade passenger mainline electric multiple-unit (MEMU) trains. Traditionally consisting of 8-12 coaches, 100 new MEMUs will be built in 16- and 20-coach configurations. These MEMUs will be produced at a new factory in Kazipet, Telangana, benefiting regional commuters significantly.
Additionally, around 1,300 Amrit Bharat stations are being developed under the Amrit Bharat Station Scheme. After the initial six, 103 new stations were recently inaugurated, and 100 more are expected by December 2025. By 2026, an additional 500 stations will be completed.
Striving for a net-zero future
Railways are one of the most environment-friendly modes of transport. Compared to road transport, which emits about 101 grams of carbon dioxide (CO2) per tonne-km, diesel-powered trains emit just 11 grams – a 90 per cent reduction. With electric traction, emissions are virtually zero, aside from minimal lubricant use. Hence, the electrification of IR has delivered enormous benefits. Since 2018-19, IR has saved Rs 290 billion in diesel costs, reduced foreign exchange outflows, and cut CO2 emissions equivalent to planting 160 million trees. This underscores the importance of 100 per cent railway electrification, which is not just desirable but essential.
By 2025, IR will achieve Scope 1 net-zero emissions, with a 2030 target set for Scope 2, as guided by the government. The share of railways in freight transport had dropped to a low of 26 per cent in 2021-22 due to capacity constraints, but owing to accelerated project execution and increased investments, it has now risen to 29 per cent. The goal is to reach 35 per cent, as part of Mission 3,000 mt – a transformative initiative for the freight segment. This investment is crucial not only for improved logistics but also to ensure a cleaner, greener future for the next generation.
“The electrification of IR has delivered enormous benefits. Since 2018-1, IR has saved Rs 20 billion in diesel costs, reduced foreign exchange outflows, and cut CO2 emissions equivalent to planting 160 million trees. This underscores the importance of 100 per cent railway electrification.”
