What Can Suresh Prabhu Do to Revive The Indian Railways?

Source:  www.niticentral.com

The Indian Railways (IR) is broke. And so is the Government of India (GOI) in context; despite a $ 2 trillion economy, and $ 333 billion in foreign exchange reserves.

This is because of the immense developmental back-log, and the massive ambition to not only revive but bring the IR into the 21stcentury at the earliest.

The States of the Indian Union, long slack on fiscal prudence, are also financially strapped, subsisting on massive bank overdrafts to tide over their revenue deficits, paying out high interest costs. Almost uniformly, excepting Gujarat, they have little or nothing left over for development.

None of these entities have the free and clear funds, or the ability to substantially finance their development ambitions. The Centre too cannot do very much on its own without losing a grip on the nation’s fiscal deficit, with dire consequences to follow. There is therefore a very good reason for Modi’s hectic international diplomacy seeking investment pledges, conducted over the last nine months and ongoing. More info

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