Indian Railways has projected growth in freight loading, passenger revenue, and overall earnings for the fiscal year 2025-26, as per the latest revised estimates (RE) and budget estimates (BE) released by the Ministry of Railways

Manoj Kumar Pathak

New Delhi: Union Minister for Railways, Communications, and Electronics & IT,  Ashwini Vaishnaw, has hailed the Union Budget 2025-26 as "amazing," expressing gratitude to Prime Minister Narendra Modi and Finance Minister Nirmala Sitharaman for continuing the trend of high allocations to the Indian Railways. The budget prioritizes railway safety, infrastructure expansion, and a transformative passenger experience.

A major highlight of this year’s railway budget is the introduction of 200 new Vande Bharat trains, 100 Amrit Bharat trains, and 50 Namo Bharat rapid rail services over the next two to three years. Additionally, 17,500 new non-AC general coaches will be added to enhance passenger convenience, particularly for the common man.

The government’s focus on bolstering rail safety remains paramount, with significant investments directed toward modernizing rail infrastructure, upgrading tracks, and deploying advanced safety mechanisms. This aligns with the larger vision of making Indian Railways a global leader in efficiency and passenger service.

Apart from passenger services, Indian Railways is poised to achieve a historic milestone in freight transportation. The national transporter is on track to becoming the world’s second-largest freight-carrying railway, with an ambitious target of handling 1.6 billion tonnes of cargo by the end of this fiscal year. The railway network is undergoing massive capacity expansion, including the addition of new freight corridors and enhanced multimodal logistics solutions to boost the economy.

Indian Railways Projects Growth in Freight and Passenger Revenue for 2025-26

Indian Railways has projected growth in freight loading, passenger revenue, and overall earnings for the fiscal year 2025-26, as per the latest revised estimates (RE) and budget estimates (BE) released by the Ministry of Railways.

Freight and Passenger Traffic Projections

For the year 2024-25, freight loading is projected to reach 1635 million tonnes (MT), compared to 1588.06 MT achieved in 2023-24. In the upcoming fiscal year 2025-26, the freight loading target is further increased to 1700 MT, indicating a 4% rise over RE 2024-25.

Freight Net Tonne Kilometres (NTKMs) have been revised to 938 billion for 2024-25 from the earlier 930 billion, while the projection for 2025-26 stands at 967 billion NTKMs.

The number of originating passengers is also expected to grow significantly. In 2023-24, Indian Railways carried 6805.45 million passengers, while the target for 2024-25 is set at 7269.78 million, marking a 6.8% increase. For 2025-26, the estimate is further raised to 7574 million passengers.

Passenger Kilometres (PKMs) are projected to reach 1204 billion in RE 2024-25, compared to 1065 billion in 2023-24. The growth trend continues into 2025-26, with PKMs expected to reach 1311 billion.

Revenue and Earnings

Passenger revenue for 2024-25 has been targeted at ₹80,000 crore, representing a 13.2% growth over the previous year. For 2025-26, the projection stands at ₹92,800 crore, an increase of ₹12,800 crore over RE 2024-25.

Goods revenue is expected to rise by 4.4% to ₹1,88,000 crore in 2025-26 from ₹1,80,000 crore in 2024-25. Additionally, revenue from Other Coaching services is projected at ₹8,500 crore, and Sundry revenue is estimated to grow to ₹12,000 crore.

Gross Traffic Receipts are forecasted to increase from ₹278,600 crore in 2024-25 to ₹301,400 crore in 2025-26. Total receipts of Indian Railways are estimated at ₹302,100 crore, reflecting an 8.3% growth over RE 2024-25.

Revenue Expenditure and Operating Ratio

The Ordinary Working Expenses (OWE) provision in RE 2024-25 is increased to ₹2,08,000 crore, primarily due to higher spending on safety-related maintenance. In BE 2025-26, OWE is further increased to ₹2,26,256 crore, including provisions for the Unified Pension Scheme (UPS).

Appropriation to the Pension Fund is set at ₹66,358.69 crore for 2024-25 and ₹68,602.69 crore for 2025-26. The total revenue expenditure of Indian Railways is estimated at ₹2,99,059 crore in BE 2025-26.

The Operating Ratio for RE 2024-25 is projected at 98.90%, which would have been 98.41% excluding interest payments related to the COVID-19 loan. For 2025-26, the Operating Ratio is estimated at 98.43%, improving to 97.98% without the COVID-19 loan interest.

Capital Expenditure and Infrastructure Development

Indian Railways has maintained a capital expenditure (Capex) provision of ₹2,65,200 crore for both RE 2024-25 and BE 2025-26. The focus areas include safety, capacity augmentation, customer amenities, and rolling stock upgradation.

• Network Expansion: Nearly 4,000 km of new tracks are being added annually, with 31,180 km laid over the past decade.
• Electrification: Indian Railways aims to achieve 100% electrification by 2025, marking the centenary of railway electrification.
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• Station Redevelopment: Over 1300 stations will be redeveloped over the next four years, integrating city connectivity, multimodal transport, and improved passenger facilities.
• Kavach Safety System: The indigenous Kavach ATP system is being installed on 10,000 locomotives. Track-side installations on 3,000 km of the New Delhi-Mumbai and New Delhi-Kolkata corridors are expected to be completed by December 2025.

To enhance passenger safety and comfort, Indian Railways has ambitious plans for rolling stock modernization:

• Non-AC Coaches: 17,500 General and Sleeper coaches are planned for manufacturing.
• LHB Coaches: Replacement of conventional ICF coaches with safer LHB coaches is targeted for completion within the next five years.
• Vande Sleeper Trains: The first rake is under testing, with 50 sleeper rakes in a 24-car configuration planned for manufacturing in 2025-26 and 2026-27.
• Namo Bharat Rapid Rail: Developed for suburban and inter-city travel, this system harnesses Vande Bharat train features for short-distance movement.
• Improved Catering: The Railways is upgrading its base kitchens to enhance food quality and hygiene standards.

Indian Railways is on an ambitious growth trajectory, with robust plans for passenger and freight traffic expansion, revenue enhancement, and infrastructure modernization. With a strong emphasis on safety, electrification, and rolling stock upgradation, the national transporter aims to bolster efficiency and passenger convenience while maintaining financial sustainability in the years ahead.

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