Big GDP boost through Indian Railways Overhaul

Industry has always wanted the Govt to reduce cross-subsidies IR pays on the passenger business. As it was some years ago, India had much higher rail freight costs compared to China.

Since 2016, Govt has obliged. It has taken time interim to add extra capacity through doubling and speeding up railways. What is remarkable is that it is not worried about short-term hits to IR profits.

Govt has a grand plan to overhaul the entire railways. Both freight and passenger sides need much higher carrying capacity and need to operate at much higher speeds. Overhaul means doing these things and modernising the outside ("looks, customer sevice"), the inside ("system upgrade to communication, safety, etc"), operations ("staff output, efficiency & quality control") and profitability ("do away with customer discounts", "increase revenue from premium passenger offerings, add new freight revenue streams, make money from spare land").

Results so far are outstanding!!

IR records highest freight & out-does roadways; also adds auto & other biz, alu wagons, etc

While passenger side grabs attention & its revenues soar