Indian Railways Witnesses a 6% Surge in Passenger Volume in FY25, crosses 7 billion mark

Indian Railways recorded a 6% passenger growth in FY25, surpassing 7 billion passengers for the first time in five years, though still below pre-Covid levels. Revenue rose 50% since FY20 to ₹75,215 crore, driven by premium services like the Vande Bharat Express, which boosted chair car earnings fourfold to ₹4,400 crore. While sleeper-class travel declined, officials expect long-distance sleeper Vande Bharat trains to further enhance revenue. Modernization efforts and evolving passenger preferences signal a strong recovery and promising future.

Indian Railways has achieved a significant milestone in the fiscal year 2024-25 (FY25), with passenger traffic recording a robust 6% growth. This increase is driven by a 5% rise in the reserved ticket category and a 6.2% uptick in unreserved passenger volume. The resurgence in train travel marks a notable recovery following the disruption caused by the Covid-19 lockdowns, although total passenger numbers remain slightly below pre-pandemic levels.

For the first time in five years, the Railways' total passenger count has exceeded 7 billion, signaling a strong rebound in demand. However, historical data reveals that the system consistently transported over 8 billion passengers annually during the decade preceding the pandemic, with FY13 marking the peak at 8.49 billion passengers. The current figures highlight how close the Railways is to reclaiming its former momentum.

Interestingly, the decline in passenger numbers is largely confined to the non-suburban segment, which has led to a substantial 50% rise in revenue compared to FY20. Revenue for the national transporter reached an impressive ₹75,215 crore for FY25, underscoring the financial resilience of the system despite reduced volumes in certain categories.

One notable trend is the continued decline in sleeper-class passengers over the past two years. Yet, premium services have stepped up to fill the gap. The introduction of modern, high-speed trains like the Vande Bharat Express has significantly boosted earnings, with revenue from chair car services experiencing an extraordinary fourfold increase over the past four years, reaching ₹4,400 crore.

Looking ahead, officials are optimistic about the potential of long-distance sleeper variants of the Vande Bharat Express, which are expected to drive even greater revenue growth in the long-haul passenger segment. These developments indicate a shift in passenger preferences toward faster and more comfortable travel options, further solidifying the Railways' standing as a cornerstone of India's transportation network.

With its ongoing efforts to modernize services and cater to evolving passenger needs, Indian Railways is not only recovering from the pandemic's impact but also setting the stage for a brighter, more prosperous future.