The Indian Railways recently introduced Surge Pricing in premium trains i.e Rajdhani, Duronto, Shatabdi. The move is an attempt at generating more revenue for some loss making trains. Railways is increasingly feeling the need to remove inefficiencies, despite increase in revenue year over year
Government's premier think-tank Niti Aayog reports that the railways' profits have not been able to keep up with its expenditures. This graph looks at the surplus/deficit of Indian Railways since Independence. The railways noted heavy surplus up until 2008-2009 after which the graph shifts dramatically in the negative. Niti Aayog suggests that after the 6th pay commission in 2008, the burden of payment of employee salaries increased considerably and now with the 7th pay commission in effect from October 2016 that liability is set to increase even more.
The rising deficit means railways will have to depend heavily on funds from the government for sustenance which if not addressed could become a serious concern soon.