Indian Politicians will never allow it. They derive power and money by controlling Indian Railways, by doling out quota, freebies, budget speeches favoring themselves and their vote banks.
If India wants to acheive a double digit GDP growth, then it must free the railways of beurocrats and ministers. Railways must be turned into a corporation like Coal India, ONGC, Indian Oil etc. The progress on laying new tracks is negligible. Railways still manufactures its rolling stock and all the items it consumes. The services are poor to say the least. Newspapers create a lot of noise about lack of facilities at airports but nobody mentions railways, just because well-paid journos never even go near a railway track, forget about travelling by railways.