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The evolution of Railways in India

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TypeCommercial Circular
Topicfreight
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Summary

over 67,956 kms, with 13,169 passenger trains and 8,479 freight trains, plying 23 million

Text of the circular

2021 
 
 
 
The Evolution of Indian 
Railways

2 
 
 
Table of Contents 
 
 
1. Evolution of Indian Railways…………………………………. 
2. Market size of Rail Industry……………………………………….. 
3. Sectoral Outlook……………………………………………………….. 
4. Challenges faced by Indian Railway……………………………………. 
5. Strategies adopted by Indian Railways…………………………………… 
6. Role of Railways in covid-19……………………………………. 
7. Modernisation of Railways………………………………………………… 
8. Export scenario …………………………………….. 
9. Make in India………………………………………….. 
10. Investment scenario in Indian Railway………………………………… 
11. Future outlook…………………………………………..

3 
 
 
 
 
 
 
 
 
 
Journey of Indian Railway

4 
 
Evolution of Indian Railways 
The Railways’ rate of growth was 
very high during the British Raj. In 
less than 20 years after the steam 
engine came to India in 1853, all its 
major 
metropolitan 
centres 
– 
including Delhi, Bombay, Calcutta 
and Madras – were linked by an 
extensive railway network. The 
country’s hill railways were laid in 
the next 50 years. Less than a 
century after the railways chugged 
into India, as many as 54,000 kilometers of tracks were added to India’s network at the annual 
rate of 600 km. However, in the 69 years since the country’s Independence, successive 
governments managed to lay only around 10,000 km of new tracks – at the approximate rate of 
160 km a year. While India’s erstwhile British rulers had ensured that all the five hill railways in 
the country became operational by 1930, Independent India has been struggling to complete 
construction work on the Kashmir rail link for the last 69 years. 
Journey of Indian Railway system 
1853-1869: Launching passenger rail services 
Although rail services in India were initially proposed in the 1830s, historians cite 16 April 1853 
as the kick starter for India’s passenger rail revolution. On this date, the country’s first passenger 
train set off on a 34km journey between Bombay’s Bori Bunder station and Thane. It consisted 
of 14 cars being hauled by three steam locomotives, and carried 400 passengers. This early era of 
passenger travel was primarily funded by private companies under a guarantee system created by 
the British Parliament, which ensured they would receive a certain rate of interest on their capital 
investment. In total, eight railway companies were established between 1855 and 1860, including 
Eastern India Railway, Great India Peninsula Company, Madras Railway, Bombay Baroda and 
Central India Railway.

5 
 
 
 
1901-1925: Moves towards centralisation 
After years of construction and financial 
investment the railways finally began to 
make a profit in 1901. Nevertheless, it 
was during the early years of this century 
that the scale of government intervention 
increased dramatically. GIPR was the first 
company to become state-owned in 1900. 
By 1907, the government had purchased 
all major lines and began leasing them 
back to private operators. 
1925-1946: Electrification and hard times 
The first electric train ran between Bombay and Kurla on 3 February, 1925, setting a precedent 
for further electrification in the coming years. By 1929, the railway network had grown to an 
overall length of 66,000km and carried approximately 620 million passengers and 90 million 
tonnes of goods annually. 
1980-2000: Technology and phasing out steam 
The 1980s saw a complete phase-out of steam locomotives, as electrification was spurred on by 
energy crises in the 1970s. Around 4,500km of track was electrified between 1980 and 1990. 
Meanwhile, India’s first metro system opened in Calcutta in 1984. 
Though economic stagnation and political upheaval blocked growth of the network in the 80s, 
the 90s saw the opening of the Konkan Railway; a 738km behemoth connecting the western 
coast of India with the rest of the country. 
2000-2017: Moving online 
Since 2000, metro stations have continued to pop up in India’s major cities, including Delhi 
(2002), Bangalore (2011), Gurgaon (2013) and Mumbai (2014). The n

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