Indian Railways Becomes Key Driver Of Progress to High-income Economy In A Decade: Crisil Report

A Crisil report released on Wednesday highlights investments of Rs 17.4 lakh crore in Indian Railways between fiscal years 2016 and 2025. These investments aim to modernize the rail network and position it as a key driver of India’s transition to a high-income economy.

The report notes that Indian Railways has undergone significant transformation over the past decade, marked by infrastructure development and technological advancements. Railway capital expenditure has achieved a compound annual growth rate of 12 percent during this period. The government is committed to enhancing all core elements of the rail system, including tracks and trains.

Future Growth and Revenue Diversification

The report outlines ambitious plans, such as constructing 100,000 km of new railway tracks over the next 20 years. Additionally, it aims to expand the Kavach safety system to cover 44,000 km within five years and equip 50,000 locomotives with this technology. To support these initiatives, Indian Railways must diversify its revenue sources.

The report suggests strategies like leveraging real-time data for operational efficiency, introducing premium services, and developing commercial spaces around railway stations. In the past 100 days alone, eight new railway line projects have been sanctioned, expected to generate 4.42 crore man-days of employment.

The report also mentions approved expansions for Varanasi’s Lal Bahadur Shastri International Airport and new civil enclaves in Bagdogra and Bihta, along with ongoing expansion plans for Bangalore Metro, Pune Metro, and the Thane Integral Ring Metro Rail Project.

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