The opposition leaders said that privatization of the railways will only benefit the corporates and they even criticized the Government of Narendra Modi for highly concentrating their efforts in ‘privatizing’ the Railways.
Indian Railways- A Key Driver of The Indian Economy
Indian Railway is a major contributor to jobs, GDP, and mobility. Even it plays a major role in integrating the markets and also helps in increasing trade. Throughout the entire lockdown, the Indian Railways has been chugging manfully. The Indian Railways has somehow managed to reinvent and rediscover itself during its critical period. The Indian Railways by applying new methods always helps in increasing the economic growth and development of India.
Negative Impact of Privatization of Railways
Privatization of Railways would mean an exponential rise in the fares of common men. Congress leader Naranbhai J Rathwa said, “The Railways should remain with the state because the profit-driven private sector will simply not run trains on unprofitable routes and will alarmingly increase the ticket fare to increase their profit margins”. It is not always that privatization will mean improvement in the services. DMK Leader P.Wilson said, “Though the Railway Minister claims that railways will not be privatized when activities of railways are privatized, the income of railways will deplete, resulting in a financial crisis which eventually will become like Air India and Indian Airlines”.
TPT Policy Advocacy & Recommendations
- Privatization of the Indian Railways would highly eliminate the less popular railway routes. Even the hike in fares can render the railways out of reach for the lower-income groups.
- The Indian economy would be affected on a large scale if the railways are ‘privatized’. It is the backbone of India and it even provides low-fare transportation to the industrial trade. So, by keeping all these in mind, the Government of India must bring other ways to improve the infrastructure of the railways and also the security system.