Railways
The Indian railway system is the second largest system in the world under the single management. Railways virtually forms the life-line of the country, catering to its needs for large scale movement of traffic, both freight and passenger, thereby contributing to economic growth as well as promoting national integration. It is a multi – gauge system operating on three gauges – the broad, the metre and the narrow.

Effect on Indian economy
• The construction and expansion of the railways have been proved to be beneficial for the economic and inclusive growth of the economy. It provides a better linkage between producer, retailer and consumer.
• It has played a significant role in the development of cotton textile industry, jute industry as it provides free flow of raw materials with proper penetration to market areas.
• Railways have been very helpful in the development of Indian agriculture. Now farmers can send their agricultural goods to distant places and can fetch good incomes.
• Railways also help in maintaining uniform price level for agricultural products through better movement.
• New industrials hubs have emerged as higher mobility of raw materials reduced the concentration of industries mainly around raw material centres. As Kanpur is known for cotton garments whereas the raw materials are present in Maharashtra and Gujarat.
• Railways are playing significant role in running country’s administration and safeguarding its freedom and integrity, as it provides easy movement of police, troops, defence equipments etc.

Effect on Indian economy
• The construction and expansion of the railways have been proved to be beneficial for the economic and inclusive growth of the economy. It provides a better linkage between producer, retailer and consumer.
• It has played a significant role in the development of cotton textile industry, jute industry as it provides free flow of raw materials with proper penetration to market areas.
• Railways have been very helpful in the development of Indian agriculture. Now farmers can send their agricultural goods to distant places and can fetch good incomes.
• Railways also help in maintaining uniform price level for agricultural products through better movement.
• New industrials hubs have emerged as higher mobility of raw materials reduced the concentration of industries mainly around raw material centres. As Kanpur is known for cotton garments whereas the raw materials are present in Maharashtra and Gujarat.
• Railways are playing significant role in running country’s administration and safeguarding its freedom and integrity, as it provides easy movement of police, troops, defence equipments etc.
Problems and Issues in Railway’s Development
1. Problem of acquiring land.
2. Indian Railways has suffered from chronic and significant under-investment as a result of which the network expansion and modernization has not happened at the requisite pace leading to an erosion of the share in national freight and passenger traffic.
3. Cleanliness, punctuality of services, safety, quality of terminals, capacity of trains, quality of food, security of passengers and ease of booking tickets are issues that need urgent attention.
4. The high density networks of the Indian Railways are facing acute capacity constraints coupled with a low passenger fares thereby leading to increases in freight tariffs to cross subsidize passenger revenues.
5. Investments in safety have also suffered on account of low internal generation of resources.
1. Problem of acquiring land.
2. Indian Railways has suffered from chronic and significant under-investment as a result of which the network expansion and modernization has not happened at the requisite pace leading to an erosion of the share in national freight and passenger traffic.
3. Cleanliness, punctuality of services, safety, quality of terminals, capacity of trains, quality of food, security of passengers and ease of booking tickets are issues that need urgent attention.
4. The high density networks of the Indian Railways are facing acute capacity constraints coupled with a low passenger fares thereby leading to increases in freight tariffs to cross subsidize passenger revenues.
5. Investments in safety have also suffered on account of low internal generation of resources.
Environmental side effects
1. The laying of new tracks requires clearance of forests that affects the biodiversity and forest dwellers both.
2. Due to presence of railway track in elephant corridor accidents and death of elephants take place.
3. For the establishment of railway tracks in hilly areas dynamites are used to break hills which in turn cause air pollution as well as lead to frequent landslides.
1. The laying of new tracks requires clearance of forests that affects the biodiversity and forest dwellers both.
2. Due to presence of railway track in elephant corridor accidents and death of elephants take place.
3. For the establishment of railway tracks in hilly areas dynamites are used to break hills which in turn cause air pollution as well as lead to frequent landslides.
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