Difficulty: Easy
Correct Answer: Goods traffic earning from freight services
Explanation:
Introduction / Context:
This question tests understanding of the basic revenue pattern of Indian Railways. Many people use trains as passengers and may assume that passenger tickets are the main source of income. However, for policy and exam purposes it is important to know that freight or goods traffic actually contributes the largest share of railway earnings. This has implications for planning, pricing, and future reforms in the rail sector.
Given Data / Assumptions:
Concept / Approach:
Historically and in current practice, freight services, also called goods traffic, generate most of the revenue for Indian Railways. Passenger fares are often kept relatively low for social and political reasons, which means passenger services by themselves are less profitable. By contrast, freight tariffs are higher and carry heavy goods such as coal, cement, and food grains, making goods traffic the backbone of railway income. The correct approach is to recall this general pattern and identify the corresponding option.
Step-by-Step Solution:
Step 1: Recall that Indian Railways provides two main categories of service, passenger transport and freight or goods transport.
Step 2: Remember that freight trains carry bulk commodities over long distances and are priced to generate significant revenue.
Step 3: Note that passenger fares are often subsidised and do not usually cover the full cost of operation.
Step 4: Look at the options and find the one that represents goods traffic earning from freight services.
Step 5: Select goods traffic earning from freight services as the maximum contributor to railway revenue.
Verification / Alternative check:
Verification can be done by looking at any Indian Railways annual report or Economic Survey discussion on the transport sector. These documents show that a large majority of operating revenue comes from freight loading, with coal often being the single largest contributor among commodities. Passenger earnings form a much smaller proportion and may even run at a loss for certain classes. Sundry earnings, coach rentals, and rentals from station premises are relatively minor. Since the data consistently show freight as the main revenue source, the conclusion is confirmed.
Why Other Options Are Wrong:
Passenger earning from ticket sales: This category is important but does not surpass freight in total revenue contribution, so it is not the maximum earner.
Sundry earnings from miscellaneous sources: These are small receipts from fines, advertisements, and other minor items and cannot be the main revenue head.
Other coach earning from special coaches: Income from special coaches such as parcel vans or tourist coaches is limited and does not exceed freight earnings.
Rental income from station premises: This includes shops and commercial use of space in stations, which is again much smaller than core freight revenue.
Common Pitfalls:
Because most people interact with Indian Railways as passengers, they sometimes assume that passenger earnings must be the largest component. Another pitfall is to overestimate the revenue from visible commercial activities at stations, such as shops and advertisements. Some learners may also not distinguish between operational revenue and one time capital receipts. To avoid these mistakes, remember that heavy freight hauled over long routes is the financial lifeline of the rail system.
Final Answer:
The category that contributes the maximum earning to Indian Railways is goods traffic earning from freight services.
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