Freight Subsidizes Passengers in India

One of the world’s fastest growing economies, India has recorded growth not only in rail freight volumes but also in revenues.  Rail is used to move many types of cargo in India, from metal ores and agricultural products to finished goods, and the profits from this are used to subsidize the traditionally cheap passenger fares.  The revenue for rail freight has increased 8.99 per cent in April and May compared with the same two months last year.  Indian Railways is proposing to expand the structure and hoping to regain freight business from the roads.