The recent stampede at New Delhi Railway Station underscores deep-rooted inefficiencies within Indian Railways, arising more from neglect than from a lack of resources. Despite past tragedies at stations like Elphinstone Road (2017) and Allahabad (2013), authorities have failed to enforce fundamental crowd management strategies and safety protocols. Urgent action is needed to break this pattern of systemic inertia and ensure such incidents are recognized as preventable failures rather than mere unfortunate occurrences.

Indian Railways: A Pillar of Economic Growth and Development

Backbone of National Transportation

Indian Railways serves as the lifeline of the nation, providing affordable and reliable transportation to millions daily.

• It enables seamless movement of passengers and goods across vast distances, fostering economic integration.
• With over 8 billion passengers transported annually, it ranks among the busiest railway networks worldwide.
• During the COVID-19 pandemic, Indian Railways launched “Oxygen Express” trains to supply medical oxygen across states, demonstrating its logistical efficiency.

Driving Economic Growth and Industrial Development

Railways play a crucial role in boosting trade, commerce, and industrial expansion across India.

• It facilitates the transportation of essential raw materials such as coal, iron ore, cement, and agricultural produce, ensuring smooth industrial operations.
• Efficient rail logistics help lower supply chain costs, making Indian manufacturing and exports more competitive.
• Large-scale infrastructure projects like Dedicated Freight Corridors (DFCs) aim to enhance efficiency and economic productivity.
• According to the CAG (2021-22), coal alone contributes nearly 50% of railway freight earnings, underscoring its significance in industrial supply chains.

Employment Generation and Livelihood Support

Indian Railways is one of the world’s largest employers, directly and indirectly supporting millions of livelihoods.

• Employing over 1.2 million people, it ranks as the ninth-largest employer globally.
• It provides stable jobs across various skill levels, including engineers, technicians, station managers, and track maintenance workers.
• Expansion in railway infrastructure, station redevelopment, and rolling stock manufacturing generates additional employment.
• Privatization and Public-Private Partnership (PPP) models in railway operations are expected to create further job opportunities.

Enhancing Rural Connectivity and Regional Development

Railways serve as a key enabler in linking remote and rural areas with urban centers and markets.

• Improved railway infrastructure in underdeveloped regions enhances access to education, healthcare, and employment.
• Special railway projects, such as the North-East Connectivity Initiative, contribute to regional development and national integration.
• In FY 2023-24, Indian Railways initiated the redevelopment of 1,275 railway stations under the Amrit Bharat Station Scheme.
• The expansion of Vande Bharat Express to Tier-2 and Tier-3 cities is expected to improve accessibility and foster regional economic growth.

Promoting Sustainable Development and Green Mobility

Indian Railways is a vital component of India’s sustainable mobility strategy, offering an eco-friendly alternative to road and air transport.

• The transition to full electrification and renewable energy aims to make Indian Railways carbon-neutral by 2030.
• As of July 2023, 14 states and union territories had achieved 100% railway electrification.
• Energy-efficient locomotives, electrified routes, and green initiatives such as bio-toilets contribute to environmental sustainability.
• Rail freight produces nearly 80% fewer greenhouse gas emissions per ton-kilometer than road transport.

Key Issues Associated with Indian Railways

Challenges Facing Indian Railways: Financial, Structural, and Operational Hurdles

Deteriorating Financial Health

Indian Railways is grappling with severe financial stress due to a shrinking revenue surplus, growing dependence on extra-budgetary resources (EBR), and rising operational costs.

• The widening gap between revenue and expenditure has hindered internal resource generation, impacting long-term financial stability.
• Heavy cross-subsidization of passenger fares through freight revenue has distorted pricing mechanisms, making rail freight less competitive.
• The CAG (2021-22) reported the worst-ever Operating Ratio of 107.39%, indicating that Railways spent ₹107.39 to earn ₹100, which would have been 109.36% if pension and asset renewal expenses were included.

Infrastructural Deficiencies

Frequent derailments, stampedes, and collisions highlight major gaps in infrastructure maintenance and safety oversight.

• Poor track renewal, outdated signaling systems, and overcrowded stations increase the risk of accidents.
• A massive backlog in asset replacement further exacerbates safety concerns, endangering millions of passengers daily.
• The CAG (2021-22) flagged a ₹34,318.79 crore backlog in overdue asset renewal.
• The Odisha Balasore triple train accident (June 2023) underscored critical deficiencies in railway safety and signaling systems.
• The ‘Kavach’ anti-collision system, intended to prevent train crashes, has seen slow implementation, with limited coverage.

Inadequate Crowd Management and Station Infrastructure

Overcrowding at major railway stations, lack of adequate holding areas, and ineffective crowd control measures pose significant safety risks, particularly during festivals and peak travel periods.

• The absence of proper barricading, planned unidirectional movement, and robust emergency response systems increases the likelihood of stampedes.
• The February 2025 New Delhi railway station stampede, triggered by a last-minute train announcement, resulted in multiple casualties.

Freight Revenue Stagnation and Market Competition

Freight operations, which subsidize passenger services, face stiff competition from road and air transport due to inefficiencies and high tariffs.

• Rail freight remains slow, lacks last-mile connectivity, and is overly reliant on bulk commodities like coal, limiting revenue diversification.
• The transition to renewable energy could reduce coal transportation demand, further impacting freight earnings.
• Government records indicate a steady decline in rail’s share of freight transport—from 85% in 1951 to 60% in 1991, and only 27% in 2022.

Environmental and Sustainability Challenges

Despite progress in electrification, Indian Railways continues to rely on diesel locomotives in several regions, contributing to air pollution and carbon emissions.

• The transition to 100% electrification is progressing slowly due to delays in infrastructure development and power procurement.
• Waste management at stations and onboard trains remains inadequate, affecting cleanliness and sustainability efforts.
• India’s transport sector accounts for 12% of the country’s greenhouse gas emissions, with railways contributing about 4%.

Lagging High-Speed Rail and Bullet Train Projects

The Mumbai-Ahmedabad bullet train project has encountered land acquisition challenges, funding delays, and political opposition, slowing India’s high-speed rail ambitions.

• The slow execution of semi-high-speed corridors, such as Vande Bharat, and inadequate track upgrades limit speed enhancements across conventional routes.
• Initially scheduled for completion in 2022, the Mumbai-Ahmedabad bullet train project is only 30% complete, with a revised deadline of 2028.

Mismanagement of Railway PSUs and Financial Viability Issues

Several Railway Public Sector Undertakings (PSUs) suffer from declining profitability, inefficiencies, and mismanagement, hampering their ability to contribute to Indian Railways’ growth.

• While some PSUs in financing and tourism have performed well, others in construction and logistics have reported diminishing returns.
• A declining return on equity and growing dependence on loans highlight deeper structural issues.
• The CAG (2021-22) reported that the return on equity for railway PSUs fell from 9.17% in 2017-18 to 7.53% in 2019-20.

Measures can be Adopted to Revitalise Indian Railways

Enhancing Financial Sustainability and Revenue Optimization

Indian Railways must transition to a more sustainable financial model by reducing reliance on extra-budgetary borrowings.

• Dynamic fare pricing, monetization of railway land assets, and greater private sector participation in station development (as recommended by the Bibek Debroy Committee) can diversify revenue streams.
• Rationalizing freight tariffs and improving last-mile connectivity will enhance rail cargo competitiveness.
• Strengthening Public-Private Partnerships (PPPs) in infrastructure projects can help alleviate fiscal burdens.

Prioritizing Safety and Infrastructure Modernization

Railways must focus on track renewal, bridge reinforcement, and station decongestion to reduce accidents and enhance operational efficiency.

• Expanding the deployment of automatic train control systems such as Kavach and centralized traffic management can significantly minimize human errors.
• Upgrading signaling infrastructure with AI-driven predictive maintenance will facilitate real-time monitoring and proactive fault detection.
• Implementing comprehensive crowd management strategies, including improved station layouts, designated holding areas, and automated entry-exit systems, will enhance passenger safety.

Leveraging Technological Advancements and Digitalization

Adopting cutting-edge technologies can boost efficiency, reliability, and passenger experience.

• AI-driven predictive maintenance, IoT-based asset monitoring, and blockchain-enabled freight tracking will optimize operations.
• Expanding real-time passenger information systems, smart ticketing solutions, and integrated mobility apps will improve service accessibility.
• Automating railway workshops and integrating robotics will streamline rolling stock maintenance.
• The complete integration of financial and operational data into a unified digital platform will enhance administrative efficiency.

Indian Railways continues to serve as the backbone of the nation’s transportation and economic infrastructure. However, systemic inefficiencies, financial constraints, and safety shortcomings limit its full potential.

• Addressing infrastructure gaps, improving crowd management, and ensuring financial sustainability are essential for long-term resilience.
• The adoption of advanced technologies, strengthening of freight operations, and promotion of green mobility can drive Indian Railways toward modernization and efficiency.