The Indian Railways has seen its passenger revenues growing 65% from Rs 44,283 crore in 2015-16 to an estimated Rs 73,000 crore 2023-24, a growth rate that lagged nominal GDP growth (115%), and the growth in competing segments like aviation revenues during the 9-year period. The share of the passenger segment in the railways’ gross traffic revenues hovered in the range of 25-28% during the last decade, excluding the pandemic years when it understandably shrank to a trickle.
Of course, Indian Railways is expecting to earn Rs 106.67 per passenger in 2024-25, almost double the rate of Rs 54.62 in 2015-16. The passenger revenues haven’t grown commensurately because of a dip in passenger volumes.
