India’s rail minister Sadananda Gowda just presented his first rail budget, promising a number of reforms, foreign direct investment, greater investments through public-private partnership and great emphasis on better passenger convenience. He was clear about the bad shape the railways is in, blaming his predecessors for sacrificing good management at the altar of populism. Railways spends 94% of its earnings in operations, investing just 6% in improving infrastructure.


India’s rail minister Sadananda Gowda just presented his first rail budget, promising a number of reforms, foreign direct investment, greater investments through public-private partnership and great emphasis on better passenger convenience. He was clear about the bad shape the railways is in, blaming his predecessors for sacrificing good management at the altar of populism. Railways spends 94% of its earnings in operations, investing just 6% in improving infrastructure.
The announcement that has caught the most attention is the introduction of a bullet train on the Mumbai-Ahmedabad sector. Surprisingly, only Rs100 crore was allocated for BJP’s ambitious “diamond quadrilateral”—a high-speed rail network connecting important trade centres and major cities.
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Here are the main promises he made in terms of passenger amenities. A lot of these are announced by every rail minister but we hardly see any of these measures implemented. But Gowda has made clear promises and there would be many opportunities later to hold him accountable.
The masterstroke of the government was to keep fare hikes separate from the rail budget. If the hikes had been announced during the budget, it would have taken the attention away from all the good measures Gowda is trying to put in place. By announcing it weeks in advance, the government kept the budget free of distraction. It also allowed the minister to tell the world that this enterprise has been run to the ground by his predecessors, and he is trying everything possible to turn it around.