Productivity-based assessment of Indian metro systems: A two-stage total factor productivity approach

This study evaluates the productivity of nine metro systems in India that commenced operations before 2019, utilising a two-stage Total Factor Productivity (TFP) framework. The benchmarking framework integrates data from the metro's annual reports for the fiscal years 2015–2016 to 2022–2023. In the first stage, Gross Variable Input Productivity (GVIP) is computed using a multilateral index number method. The inputs are labour and soft input costs, and the outputs are passenger kilometres and other revenue. Based on GVIP, the Hyderabad Metro consistently ranks the most productive, securing the top position in four out of five years. Productivity is influenced by external factors such as network size, gross domestic product (GDP), and socioeconomic conditions; therefore, we computed Net Variable Input Productivity (NVIP) using regression analysis to retrieve the residual. The regression results indicate that track length and GDP have a significant impact on metro productivity. According to NVIP, there were some changes in the position of other metros, but Hyderabad Metro retained its top spot. Sensitivity analysis confirms the robustness of the benchmarking framework. The study's policy recommendations emphasise the importance of expanding network capacity, enhancing multimodal integration, and increasing non-fare revenue streams.