Multiple choice

Indian Railways earn the maximum revenue from

  1. passenger fare

  2. freight

  3. traffic tax

  4. passenger tax
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Indian Railways generates its maximum revenue from freight traffic, not passenger fares. Freight accounts for approximately two-thirds of railway revenue, while passenger traffic often operates at a loss. This is why cross-subsidization exists, where freight profits support passenger services.

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