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The case discusses the growth and operations of Indian Railways (IR), the largest railway network under a single management and the largest employer in the world. The roots of IR are traced back to the 1800s, when India was under the British rule. The case includes a detailed account of the development of IR since the mid-1800s till the early-2000s. Most of the important developments in the history of IR are outlined. Although railway networks were initially developed by private companies, after 1920 they were all taken over by the central government, which created a department of railways. Even after Indian independence in 1947, railways continued as a central government department. The practice of presenting a railway budget separate from the annual general budget is also traced back to British times. The second part of the case outlines some of the problems faced by IR in the late-1900s and the difficulties the department faced in overcoming them. Several experts suggested ways in which IR may be restructured. These suggestions are also discussed in detail. The case concludes with a description of the steps taken by IR to overcome some of its problems.