Indian Railways Sees Financial Rebound with 10-Year Revenue Surplus

As per PTI report, Union Railways Minister Ashwini Vaishnaw reportedly told the Rajya Sabha that the financial position of Indian Railways has improved over the past decade. He said the system is now reporting a small surplus after meeting its operating expenses.  

The change, he noted, followed higher freight movement, better passenger earnings, and steps to control costs. 

In 2024-25, the operating ratio stood at 98.22%. Gross traffic receipts were reported at ₹2,65,114 crore. The surplus for the year was ₹2,660 crore, according to the minister’s written reply. 

Major Expenditure Heads 

Total annual expenditure is estimated at about ₹2.74 lakh crore. Staff costs account for around ₹1.18 lakh crore for nearly 12 lakh employees. Pension payments for about 18 lakh retirees add another ₹65,000 crore. 

Energy spending is around ₹32,000 crore, while finance costs stand at ₹23,000 crore. Maintenance expenses are estimated at roughly ₹8,000 crore. These categories make up most of the railways’ routine outgo. 

Energy Costs and Electrification 

The minister said energy expenses have fallen despite an increase in freight traffic. Spending on diesel and electricity declined to about ₹32,400 crore from ₹37,841 crore four years earlier. 

He attributed the reduction to electrification and other operational changes. Energy-related measures alone have resulted in savings of about ₹5,500 crore. 

Freight Growth and Passenger Support 

Freight traffic has increased by around 400 million tonnes over the last ten years. This rise has contributed to higher revenue for the railways. 

Passenger travel continues to be subsidised. The government provides an estimated ₹60,000 crore annually, which works out to roughly 45 per cent of the average passenger fare. 

Employment and Regional Allocation 

Between 2014 and 2024, around 5.04 lakh jobs were created in the railways. Recruitment for another 1.5 lakh posts is underway, including 18,000 assistant loco pilot positions. 

Budget allocations for the Northeast have also risen to ₹11,486 crore, compared with about ₹2,000 crore earlier. 

Read More: Centre Lines Up ₹31,000 Crore Projects for Green Bond Funding in FY27! 

Conclusion 

The minister said higher freight volumes, lower energy costs, and controlled spending have helped the railways record a modest surplus after meeting annual expenses. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.   
 
Investments in the securities market are subject to market risks, read all the related documents carefully before investing.