The Economics of India’s Railways A fare hike for India’s railways may represent a step in the right direction for India, but more must be done. By Ram Mashru June 26, 2014 thediplomat/2014/06/the-economics-of-indias-railways/ India boasts the world’s largest rail network, with over 25 million people traveling on some 11,000 trains every day. The railways that snake across India, a colonial inheritance first built to transport troops across the country, are the crucial economic lifeblood of the country, enabling the movement of goods and people. This week, in a hugely contentious move, India’s Railways Ministry hiked up the cost of traveling by train. From June 25 the cost of tickets for passengers will increase by 14.2 percent, while the costs for transporting freight will go up by 6.5 percent. With India’s low-cost airlines racing to the bottom on prices to win customers, the rail fare increases mean that, on some popular routes, it is now more expensive to travel by train than it is to fly.
Posted on: Wed, 25 Jun 2014 17:50:09 +0000
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