Indian Railways is undertaking a major shift in its financial strategy by leaning heavily into the premium Vande Bharat segment. As passenger preferences evolve, the national transporter is leveraging the high profitability of AC 3-tier and chair car services to strengthen its financial health. This strategic focus is designed to optimize the railway’s operating ratio, which is currently recorded at approximately 98.8 percent.
Key highlights of the current Vande Bharat expansion include:
- AC 3-tier services generated a profit of approximately ₹3,645 crore in fiscal year 2025.
- AC chair car services contributed ₹376.77 crore in profit during the same period.
- Ridership has seen a significant 34% increase, with nearly 3.98 crore passengers opting for Vande Bharat trains in fiscal year 2026.
- 164 Vande Bharat trains are currently operational as of late 2025.
- Production is underway for 27 new trainsets at a cost exceeding ₹2,700 crore at the Integrated Coach Factory in Chennai.
Ambitious Scaling and Future Outlook
To keep pace with the surging demand for semi-high-speed travel, the Integrated Coach Factory (ICF) is working on both chair car and sleeper configurations. The railway has set an ambitious roadmap for the future, aiming to increase the fleet to 800 Vande Bharat trains by 2030, with a long-term goal of reaching 4,500 trainsets by 2047.
The success of the Vande Bharat project has transcended domestic borders, drawing interest from nations including Sri Lanka, Nepal, and Brazil. These countries are evaluating the indigenous trainsets as a cost-effective alternative to expensive global high-speed rail standards.
Diversifying into Freight Logistics
Beyond passenger services, Indian Railways is diversifying its portfolio to boost efficiency in the logistics sector. The administration is planning to introduce Vande Bharat freight services capable of speeds up to 160 km/h. This initiative is expected to streamline logistics and provide vital support to agricultural supply chains, ensuring that the semi-high-speed technology benefits both the economy and the passenger experience. With these developments, Indian Railways continues to modernize its infrastructure while securing a more stable financial future.