Railways – Engine for Growth over the Next Decade: Religare

Religare has come out with its sector report on Capital Goods & Infrastrusture sector. According to the research firm,We believe IR has the potential to emerge as the next engine of growth in capital investments in India over the next decade!

Download Full Report Here: CapitalGoods-23-2-17-PL

Mumbai: The central government has chosen railways as one of important driver for capital formation given the huge potential and multiplier impact it can have on the economy (~5x). Government has put together a plan to significantly step up investment in Indian Railways (IR).

It has planned an investment of over Rs 8.5 trillion over next five years, more than 3.5x over previous five years. In line with the plan, FY16 and FY17 saw allocation increase by 51% and 21% respectively.

In efforts to sustainably turn around railways, focus is not only on investment, but also other long term structural reforms to bring in efficiency, accountability and transparency. While investment plan might sound ambitions, sound financial plan makes it more reliable.

While putting mammoth organization like railways on track is a tall task, over the past one year many creditable steps have been taken which is expected to start bear fruits. We believe IR has the potential to emerge as the next engine of growth in capital investments in India over the next decade.

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