Railways are important for the growth of the Indian economy.
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Railway being an important part of service sector also contributing to nation's economic development directly as well as indirectly.Service sector is gradually improving its share in employment. Capacity building on existing routes will help in carrying more and more freight, also in increasing passenger travelling.
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Railways were the most important infrastructure development in India from 1850 to 1947. In terms of the economy, railways played a major role in integrating markets and increasing trade. In terms of politics, railways shaped the finances of the colonial government and the Princely States.
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