Travails of the great Indian ‘cattle class’

On 3 March 2025, the government upgraded the Indian Railway Catering and Tourism Corporation (IRCTC) and Indian Railway Finance Corporation (IRFC) to ‘navaratna’ companies. The very next day, share prices of these two listed companies rose by four per cent—which would not have been surprising had the entire market not been tanking spectacularly.

This gemological classification of better-performing public sector under-takings as maharatna, navaratna and miniratna companies dates back to 1997. What it means is simply more autonomy—they can take certain decisions and invest up to a certain ceiling without waiting on government approval. Neither company, though, seems to merit the ‘better performing’ tag.

IRCTC share prices slipped from a high of Rs 1,148 per share in May 2024 to Rs 655 in March 2025. IRFC shares also slipped from a high of Rs 229 in July 2024 to Rs 115 in March 2025.

Even as Railway minister Ashwini Vaishnaw rushed to congratulate the two companies, there was really not much to celebrate. In fact, according to a CAG report, IRFC liabilities have surged to Rs 4.4 lakh crore, with lease charges—Rs 27,905 crore in capital and Rs 31,433 crore in interest—now consuming 20 per cent of revenue, up from Rs 15,598 crore in 2016–17.

Even as the operational and financial performance of the Railways slipped, the hype around its policies and performance stayed on track.

Barely two days after the deadly stampede at New Delhi railway station on 15 February, the Railways awarded a Rs 2,200- crore contract for the station to have airport-like facilities such as arrival and departure lobbies, cloak rooms, a twin glass dome structure, a shopping arcade… Seriously?

This focus on glitz, at the expense of most passengers’ needs, is evident in all its actions.

Ever since 2017, when the separate railway budget was dropped, the Indian Railways have become less accountable to the people of India. Was the 2011–22 vision statement—’Indian Railways shall provide safe, efficient, affordable, and customer-focused transport’—just hot air?

The numbers reveal that India’s vast majority of ‘second class’ passengers have been sidelined to prioritise the affluent ‘executive class’. While AC/executive class passengers rose from 393 million in 2013–14 to Travails of the great Indian ‘cattle class’ 532 million in 2022–23, ordinary class passengers fell from 7,921 million to 5,859 million.

In 2022–23, Indian Railways carried one billion fewer second-class passengers on long-distance trains compared to 2011–12. Meanwhile, AC capacity grew by 190 per cent, while second-class capacity increased by just 15 per cent.

A massive sum has been allocated to the Ahmedabad–Mumbai bullet train. Though the deadline has been pushed to 2030, efforts are underway to launch it in Gujarat before the 2027 assembly elections. Originally pegged at Rs 1 lakh crore, the cost is expected to double.

Meanwhile, most of the fancy— and fancied—Vande Bharat trains are operating with eight coaches instead of the usual 16 due to low demand. While the Railways’ coffers run on empty, these plush trains often run with many empty seats.

F or 90 per cent of Indians, train travel is the most affordable long-distance option. Yet, for years, Railway officials have complained that passengers generate lower revenue, with freight earnings and higher AC fares cross-subsidising general passengers.

According to retired railway engineer Alok Verma, India is no exception—passenger traffic is subsidised globally. “If people’s mobility improves, the economy benefits. In India, IR is building dedicated freight corridors, while China has focused on dedicated passenger corridors,” says Verma, noting that many Indians travel across the country in search of temporary work.

These migrant workers and poorer sections are the ones who die in railway accidents, squeezing into overcrowded trains or perilously perching on roofs and footboards. Most of the victims in last month’s stampede at New Delhi railway station were waiting to board second-class general coaches.

A CAG report cites 20 train accidents in 2023– 24, resulting in 313 deaths and 800 serious injuries. Two years ago, the Railway Board introduced a policy on ‘standardisation of rakes’, limiting trains to no more than two unreserved coaches.

Previously, a standard 22-coach train had four general coaches— this has now been reduced to two. The number of second-class sleeper coaches, once seven, has also been cut to two.

However, ticket sales for unreserved coaches have not been reduced. This was evident last month after the stampede at New Delhi Railway Station, where, despite two unreserved cars seating only 300 passengers, 600–700 tickets were sold, ignoring limited capacity.

Severe overcrowding during festivals like Chhath Pooja and the recent Kumbh Mela highlights that, despite high demand, the number of general coaches has not increased.

RTI data shows unreserved passengers in reserved coaches rose by 110 per cent in 2023–24 compared to the previous year. Despite this demand, additional coaches are not added due to shortages of loco pilots, ticket-checking staff and other resources. Non-air-conditioned classes account for maximum traffic but show minimal growth.

Sleeper class (22 per cent of non-suburban traffic, Rs 16,509 crore) grew just 0.3 per cent annually since 2015–16, second-class mail/ express (35 per cent, Rs 17,511 crore) grew 3 per cent, and second-class ordinary (7 per cent, Rs 1,626 crore) declined by 10 per cent.

In contrast, air-conditioned coach passengers saw strong growth: AC 3-tier (20 per cent, Rs 37,115 crore) grew 14 per cent, AC chair-car (2 per cent, Rs 5,626 crore) grew 29 per cent, and AC first class (0.4 per cent, Rs 1,527 crore) grew 11 per cent. Suburban traffic, generating 1.24 billion passenger kilometres and Rs 3,071 crore, operates at a loss of Rs 8,316 crore.

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The projected internal revenue for Indian Railways in 2025–26 is Rs 3,02,100 crore, up from Rs 2,78,000 crore in 2024–25. The majority comes from freight operations (62 per cent, Rs 1,88,000 crore), followed by passenger earnings (31 per cent, Rs 92,800 crore).

Ancillary sources, including catering and advertisements, contribute 4 per cent (Rs 12,000 crore), with miscellaneous receipts, including fines, totalling Rs 700 crore.

Freight and passenger movement remain sluggish. Despite the government’s claims and the Gati Shakti hype, the average speed of freight trains dropped from 27.2 km/h in 2010–11 to 24.4 km/h in 2019–20. Track overcrowding, failure to upgrade and renew tracks and a shortage of staff, including loco pilots, have all contributed to the slowdown.

Train and passenger safety receive scant attention. A frightening 63 per cent of nonAC coaches lack basic safety equipment like fire extinguishers. By November 2024, the ‘kavach’ automatic train protection system covered just 3,434 km. At Rs 50 lakh per km and Rs 80 lakh per locomotive, this safety measure covers only a small fraction of India’s 65,000 km rail network.

The Rashtriya Rail Sanraksha Kosh (RRSK), established in 2017–18 with a target corpus of Rs 1 lakh crore over five years (extended to 2027), was meant to receive Rs 15,000 crore annually from the government and Rs 5,000 crore from Railway revenue.

However, the Railways contributed just Rs 201 crore in 2019–20 and nothing the following year. The 2025–26 allocation is Rs 2,000 crore, up from Rs 920 crore in 2024–25, but still far below the mandated Rs 5,000 crore.