Financial Performance and Operational Efficiency of Indian Railways: An Econometric Analysis

Abstract

Using annual data from 2014–2024, this study examines the relationship between operational efficiency and financial performance of Indian Railways. Key variables include operating ratio, freight tonne-km, passenger km, electrified route km, and macroeconomic controls such as GDP growth and inflation. Econometric analysis using ARDL and regression models reveals that improvements in freight and passenger efficiency, as well as electrification, are significantly associated with better financial performance. Policy implications include targeted productivity reforms, dynamic pricing, and strategic capital allocation.