Investment on Indian Railways and Its Contribution to GDP-An Empirical Study

The service sector covers a wide array of activities ranging from services provided by the most sophisticated sector like telecommunications to simple services, highly capital intensive activities like civil aviation and shipping to employment-oriented activities like tourism and housing, infrastructure related activities like railways, roadways, and ports to social sector related activities like health and education. Indian Railways is one of the largest systems in the world under single management. It is also one of the very few railway systems in the world generating operating surpluses. With a modest beginning in India from 1853, the Indian Railways has emerged today as the main vehicle for socio-economic development of the country. Investment is very important factor for the development of any economy. The present study makes an attempt to explore the relationship between Railways share in India's G.D.P and investment in Indian railways. This study is an attempt to examine how investment in Indian railways has influenced its contribution to GDP.