A large number of technological advancements have taken place on Indian Railways in recent times. Technological changes resulting in fuel and labor efficiency increase productivity and thereby reduce the cost of production on Indian Railways.
To assess the productivity performance on Indian Railways, two outputs and three inputs are considered for the period from 1981-82 to 2002-03. During this period, there was large structural change in capital stocks, especially with respect to rolling stock and equipment. Embodied new technology in terms of diesel and electric engines was added. The study clearly shows that technological progress must have been a very important factor leading to higher productivity
