An Economic Analysis of Privatization of Indian Railways

Abstract

Importance of Work –The main purpose of this paper is to understand the history of Indian railways and what would be the possible advantages and disadvantages from these privatization programs and also to highlight the recent initiatives of Indian government to provide better facilities with the support of private investors without leaving its social objectives. Abastract-With the introduction of liberalization and privatization market expanded by manifold but due to many social objectives Indian railway was deprived for many decades from this privatization programmer. In India Indian railways are credited for serving the largest democracy in the world. Recently for the trial purpose Indian railway catering and tourism corporation started Tejas express which was partially privatized. According to Arvind subhramanyan if you invest one rupees in Indian railway it will generate five rupees in the economy. There is another proposal of a National rail plan for India it is a 30 year plan from 2021 to 2051, which envisages investments of 38.5 lakh crore for the larger need of fund government open up foreign direct investment through automatic route which means buyer or investor does not require prior approval from the reserve bank of India.