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UID: EC-20240203-IN-03
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Revenue sources of Indian Railways encompass the various streams through which the organisation earns income to support its operations, infrastructure development, and modernisation initiatives. The two primary contributors to railway revenue are freight and passenger services. Freight transportation, particularly the movement of bulk commodities such as coal, iron ore, cement, and agricultural produce, constitutes over 60% of the total revenue. Passenger earnings stem from ticket sales across different travel classes, including suburban, mail/express, and premium trains. Beyond core services, Indian Railways generates supplementary income through catering, parcel and luggage transport, platform tickets, and public-private partnerships. Additionally, the railways monetise non-core assets by leasing land, selling advertising rights, and engaging in station redevelopment and commercial utilisation of railway properties.
Understanding and optimising the revenue sources of Indian Railways is crucial for ensuring financial sustainability and reducing dependence on government subsidies. As the railways undergo modernisation, electrification, and capacity expansion, robust revenue generation becomes vital to fund capital investments and improve service quality. Enhancing freight efficiency and promoting high-yield services can significantly boost earnings. Moreover, diversification of income through non-tariff avenues like real estate development and advertising offers opportunities to strengthen financial resilience. A balanced and forward-looking revenue strategy supports the dual goals of economic viability and accessible public transport.
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