How Indian railway is contributing in the growth of Indian economy

Indian railway always has been playing a vital role in the Indian economy. India has one of the largest rail networks in the world and as we all know that most Indian travel through trains. With humble beginnings in India in 1853, the Indian Railways has grown to become the country’s primary driver for economic growth. Indian railway has a capacity of providing 13.6 lakhs employment. Hens, it is one of the largest employment providers in India. 

The Indian railway system contributes greatly to the development of employment in the country. When opposed to road transportation, rail transportation offers a variety of benefits. Rail has much lower social costs in terms of environmental damage or deterioration. For comparable levels of traffic, rail building costs are approximately six times lower than road construction.

Indian Railway Organization Structure

Indian railway is owned by Indian railway and it’s headquarter is in New Delhi. It is owned and operated by the Indian government’s Ministry of Railways. Indian Railways has a total track length of 114,500 kilometres (71,147 miles), a route length of 65,000 kilometres (40,389 miles), and 7,500 stations. India comes fourth in the list of world’s largest rail networks, the first three countries are the United States, Russia, and China.

What Role Does Indian Railway Play in Economic Development?

  • The service industry is key to the growth of the Indian economy. Railways, being an integral aspect of the service sector, contribute both directly and indirectly to the nation’s economic development.
  • Through its forward and backward integration, Indian railways generate not just formal but also a substantial amount of informal employment. The service sector is gradually increasing its employment share.
  • Building capacity on current routes will aid in the transportation of more and more freight as well as an increase in passenger traffic.
  • The improvement of operating ratios will be prioritised, which will aid in future project financing.
  • E-catering services on trains are assisting Indian Railways in their expansion and, as a result, creating more job possibilities. This has proven to be a tremendous benefit for job creation, which in turn helps the Indian economy thrive.
  • Extensive network expansions under the “Diamond Quadrilateral Scheme” will facilitate the movement of goods and shorten company lead times. This huge project aims to build a high-speed rail network in India, connecting four major metro cities: Delhi, Mumbai, Kolkata, and Chennai. In the first phase, segregated rail routes will be upgraded to train speeds of 160 to 200 km/h using conventional technology. Key intercity corridors will be identified in the second phase, and state-of-the-art high-speed lines up to 350 km/h will be created via public-private partnerships and state ownership.
  • Delhi – Kolkata corridor : New Delhi – Aligarh – Agra – Kanpur – Lukhnow – Sultanpur – Varanasi – Buxar – Gaya – Patna – Dhanbad – Asansol – Bardwan – Kolkata
  • Delhi – Mumbai corridor : New Delhi – Gurugram – Rewari – Jaipur – Ajmer – Bhilwara – Udaipur – Himmatnagar – Ahmedabad – Anand – Vadodra – Surat – Vapi – Boisar – Virar – Thane – Mumbai
  • Mumbai – Chennai corridor : Thane – Navi Mumbai – Lonavala – Pune – Kolhapur – Belagavi – Hubballi – Davangere – Tumkur – Bangaluru – Banagarpet – Chennai
  • Kolkata – Chennai corridor: Kolkata – Haldia – Cutttack – Bhubaneshwar – Vijayanagram – Vishakapatnam – Rajahmundry – Nellore – Chennai
  • Delhi – Chennai corridor : New Delhi – Agra – Gwalior – Guna – Bhopal – Itarsi – Betul – Nagpur – Nizamabad – Hyderabad – Vijaywada – Ongole – Chennai
  • Mumbai – Kolkata corridor : Thane – Nashik – Aurangabad – Akola – Nagpur – Durg – Raipur – Bilaspur – Rourkela – Kharagpur – Kolkata
  • Rail has much lower social costs in terms of environmental damage or deterioration.
  • For comparable levels of traffic, rail building costs are approximately six times lower than road construction.
  • It is the only major mode of transportation that can use any type of primary energy.

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