Indian Railways is on a transformative journey with total investments projected to reach Rs 1.74 trillion between fiscals 2016 and 2025, according to a CRISIL report. This represents a compound annual growth rate (CAGR) of 12%, positioning Indian Railways as a key driver in India’s push toward becoming a high-income economy.
The report highlights major infrastructure advancements, including the electrification of over 94% of the broad-gauge network as of fiscal 2024, along with ongoing modernization of rolling stock and track upgrades. One of the key projects under construction is the Rs 1.08 trillion high-speed rail corridor between Mumbai and Ahmedabad, which will reduce travel time to two hours with trains running at speeds up to 320 km/h.
Additionally, Indian Railways has completed 15,861 km of track doubling since fiscal 2016 and operates 82 Vande Bharat and eight Tejas Express trains. The indigenous automatic train protection system, Kavach, has been installed on 144 locomotives, with plans to expand it to cover 44,000 km within five years.
To sustain its growth, the report suggests Indian Railways must diversify revenue sources, with strategies like vicinity development around stations, premium services, and data monetization. Looking ahead, the railway is expected to build 100,000 km of new tracks over the next two decades and produce 400 new Vande Bharat trains within three years.
The Amrit Bharat Station Scheme, with an investment of Rs 1 trillion, aims to modernize 553 stations, enhancing facilities such as waiting areas and digital ticketing systems. Indian Railways has also installed free Wi-Fi at over 6,000 stations and launched a next-gen e-ticketing system capable of processing 26,000 tickets per minute.