Market Reports

India’s Railway Industry

1	Quick Facts: India’s Railway Industry
2	Overview of Indian Railway Industry
3	India’s Railway Industry – By Application
4	Government Initiatives
5	Megatrends in Railway Industry
6	Why Invest in India’s Railway Industry?

Quick Facts: India’s Railway Industry

Indian Railways manages the fourth largest national railway system globally by size, with a route length of 69,181 km as of 2024
97% of the broad-gauge network has been electrified, with 3,210 km of Route electrified during the calendar year 2024
In FY 2023-24, Indian Railways achieved gross revenue of INR 2.6 trillion, with freight earnings constituting 65% of gross earnings
Indian railways carried 7 billion passengers in 2023-24, registering 7.9% growth over the previous year, with passenger earnings of INR 706 billion
The central government allocated a capital expenditure of INR 2.6 trillion for 2024-25, the highest budget allocation in railway history
As of 31st March 2024, Indian Railways employed 1.2 million regular employees, making it one of the world’s largest commercial employers
As of December 2024, 136 Vande Bharat train services are operational across the Indian railways network, representing the semi-high-speed revolution
Under the Amrit Bharat Station Scheme, 1,337 stations have been identified for redevelopment, with work commenced at 1,198 stations as of 2024
The government allows 100% FDI in the railway sector under the automatic route, with cumulative FDI inflows of INR 91.6 billion from April 2000 to March 2025 in railway-related components
Indian Railways has set a target of becoming a Net Zero Carbon Emitter by 2030, with approximately 2,014 MW of renewable energy capacity tied up as of November 2024

Overview of Indian Railway Industry

The Indian railway industry, the fourth largest globally, forms the backbone of the nation’s transportation and economic infrastructure. Spanning 69,181 km and over 8,000 stations, it facilitates extensive mobility, connectivity and trade. In FY 2023–24, Indian Railways reported gross traffic receipts of INR 2.7 trillion, a 6.4% annual increase as compared to FY 2022-23. Freight operations contributed 1.6 billion tons of cargo, while passenger services accounted with 7 billion passengers.

Currently, undergoing major modernization, the sector benefits from a record INR 2,652 billion capital outlay in FY 2024–25 for freight corridors, high-speed rail and station redevelopment. With 97% electrification and a Net Zero Carbon goal by 2030, initiatives such as Vande Bharat trains, Kavach safety systems and digitalization exemplify its progress. Employing over 1.2 million people, the industry continues to drive inclusive economic growth across India.

India’s Railway Industry – By Application

Freight:
The freight segment is the primary revenue driver for Indian Railways, accounting for 65% of gross earnings in FY 2024–25. The segment transported 1.6 billion tons of cargo, with coal (49.5%), iron ore and raw materials (18.8%) and cement (9.6%) as key commodities. Enhanced by dedicated freight corridors, the segment now emphasizes speed, capacity and reliability. With the growing adoption of containerization, logistics hubs and multimodal connectivity, freight transport is evolving into a modern, technology-driven logistics network that supports India’s industrial and economic growth.
Passenger:
The passenger segment is the backbone of the Indian railway industry, providing essential mobility for millions across the country. This segment marked an annual growth rate of 11.5% as compared to FY 2023-24. Serving over 20 million people daily, the segment includes premium trains such as the Rajdhani and Vande Bharat, as well as suburban networks and unreserved services. Modernization initiatives, including the introduction of Vande Bharat and Namo Bharat trains, digital ticketing and enhanced comfort features, are significantly improving travel efficiency and the overall passenger experience.

Government Initiatives

Amrit Bharat Station Scheme (ABSS)

Aims to redevelop 1,337 railway stations across India with world-class passenger amenities and improved accessibility.
Focus on sustainability with solar energy, rainwater harvesting and green building practices, alongside cultural integration through local art and heritage design.
Key features include roof plazas for city integration, multimodal connectivity, modern lounges, food courts, lifts, escalators and digital systems.
Expected to boost employment, urban development and tourism around redeveloped stations.

Vande Bharat Mission – Indigenous High-Speed Trains

136 Vande Bharat train services are operational across India as of December 2024, offering 160 kmph speed, faster travel and modern amenities like automatic doors, GPS information and bio-vacuum toilets.
First indigenously built Vande Bharat Sleeper train launched in September 2024, designed for overnight travel with upgraded comfort and safety.
Production expansion underway with 50 new Sleeper rakes and Vande Metro development, targeting 400 services by FY 2025.

Dedicated Freight Corridor Development

Eastern Dedicated Freight Corridor (EDFC) is fully operational, while 1,220 km of Western Dedicated Freight Corridor (WDFC) is commissioned, together handling over 72,000 trains.
The corridors reduce logistics costs by 30–40%, support double-stack container trains, and ensure fully electric, energy-efficient operations.
Three new Economic Corridors covering 434 projects have been launched in 2024, boosting connectivity for energy, minerals, cement and high-traffic routes.

Railway Electrification Program

97% of India’s broad-gauge network electrified as of 2024, covering 68,701 km of route, with full electrification targeted.
Electric traction is 70% more economical than diesel, enabling faster, heavier trains with lower emissions and fuel dependence.
Renewable energy push includes 487 MW solar, 103 MW wind and 100 MW RE-RTC projects, total of 2,014 MW of renewable capacity.
Indian Railways aims to achieve Net Zero Carbon Emissions by 2030 through full electrification, renewable integration and energy-efficient infrastructure.

Mumbai–Ahmedabad High Speed Rail Corridor (Mumbai–Ahmedabad HSR)

Mumbai–Ahmedabad High Speed Rail is India’s first bullet train project, being developed using Japan’s Shinkansen technology. It aims to significantly cut travel time and set new benchmarks for high-speed rail infrastructure.
The corridor spans approximately 508 km with 12 stations across Maharashtra and Gujarat. It is designed to improve regional connectivity and enhance passenger mobility between two major economic hubs.
Trains are planned to operate at 320 km/h, with a design speed of 350 km/h. This will reduce the Mumbai–Ahmedabad journey to about 2 hours, compared to the current 6–7 hours.
The total project cost is estimated at around INR 1.08 trillion. Approximately 81% of this is financed through a low-interest loan from Japan’s JICA, highlighting strong international collaboration.
Nearly 90% of the route is being built on elevated viaducts, ensuring minimal land disruption. The project also includes a 21-km tunnel, with a unique 7-km undersea stretch the first of its kind in India.

Megatrends in the Railway Industry

Digital Transformation and Passenger Services

E-ticketing adoption reached 86% in reserved and 33% in unreserved sectors by October 2024, marking a major digital shift in railway operations.
IRCTC enables seamless ticketing with real-time availability, digital payments and automatic refunds within 24 hours.
QR code-based payments introduced across ticketing and parcel counters, enhancing contactless transactions and efficiency.

Gati Shakti Multi-Modal Integration

Launched in December 2021 to promote private participation in cargo terminal development.
Multi-modal connectivity strengthened through integrated station redevelopment and the One Station One Product (OSOP) initiative at 1,906 stations, supporting local artisans.
Logistics efficiency boosted with the Joint Parcel Product – Rapid Cargo Service (JPP-RCS), offering online booking, real-time tracking and cost-effective door-to-door delivery for e-commerce and FMCG sectors.

Advanced Safety Systems and Technology Integration

Kavach automatic train protection system ensures Safety Integrity Level – 4 (SIL-4) safety standards, preventing collisions through automatic braking and real-time monitoring in all weather conditions.
Centralized safety upgrades include Public Address Systems, digital VHF communication, tunnel communication and CCTV coverage at 1,051 stations.
Optical Fiber Cable network expanded to 66,588 km and Wi-Fi enabled at 6,112 stations, enhancing operational safety and passenger connectivity.

Why Invest in India’s Railway Industry?

Massive Infrastructure Expansion and Capital Investment

A record capital outlay of INR 2.6 Trillion allocated in FY 2024–25, marking a 76% rise over five years and the highest in the railway sector’s history.
Aiming for INR 60.7 Trillion investment by 2030 to expand networks, modernize rolling stock and upgrade technology infrastructure.
Expanding Public-Private Partnership (PPP) opportunities across station redevelopment, private train operations and manufacturing, backed by streamlined approvals and policy reforms.

Strong Policy Support and Regulatory Framework

100% FDI permitted under the automatic route, attracting INR 91.6 billion from April 2000 to March 2025, reflecting strong investor confidence.
Long-term stability driven by the National Rail Plan 2030, dedicated freight corridor roadmap and full electrification targets, ensuring a predictable investment climate.
Government backing through Production-Linked Incentive (PLI) schemes, infrastructure funds and technology missions, with a 19% budget hike for the railways sector in FY 2024–25.

Technology Adoption and Innovation Ecosystem

Strong focus on indigenous innovation with Vande Bharat trains (~75% local source), Kavach safety system and advanced crossing signal technologies, reducing import dependence.
Digital transformation through e-ticketing, automated refunds and integrated passenger information systems, enhancing efficiency and service quality.
Global collaborations and technology transfer in high-speed rail and automation, strengthening India’s railway innovation ecosystem.

Growing Domestic Market and Consumption Base

India’s railway industry generated revenue of INR 2.6 trillion in FY 2024-25, driven by strong freight and passenger earnings.
Growing demand for logistics services driven by economic growth, e-commerce expansion, manufacturing sector development and government initiatives like Make in India and Atmanirbhar Bharat.
Railways positioned to capture increasing share of freight market through competitive pricing, improved service quality and multimodal connectivity.