One of the remarkable landmarks in the process of civilization is the building development of railways and roadways. Industrial Revolution was benefited by railway line routes construction. Indian Railways is the lifeline of our country. Railways are fully owned by government for social benefits to citizen by connecting geographical boundaries and easy enabling trade and commerce. Railways service with the concept of benefitting the people of its nation be they be rich middle class or poor people of society. It enhances the regional development of states through connecting rail routes. But in spite being such an important part of economy is several past years there has been under investment in this sector. As a result the infrastructural development is ignored, advance technology needs to be implemented with high amount of investment both in terms of monetary and research wise. Investment in safety has to be ensured as well in order to increase the service delivery and quality and generate desirable national income. It is one of the pillars of the nation.In the year 2004 under the regime of Mr. Lalu Prasad Yadav, the then railway minister of Indian railways had earned an unexpected profits. The period is termed as a “Turnaround” of our Indian railways. Mr. Lalu Prasad Yadav is known as one of the best Central railway minister our nation has witnessed till date. He achieved tremendous success and became perhaps the best railway minister so far, breaking the record of 1994-96 and bringing down the Operating Ratio (OR) to the tune of 78 per cent in the year 2006-07 and  76 per cent in 2007-08 with in four years.

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Keywords: Financial Performance, New Economic Policy, Turnaround in Indian Railways.