Pros:
Better connectivity within districts and state capital
Better utilisation of available resource
Containing ticketless travel
Better punctuality can be achieved
States...
more... with better economy will have better public amenities
Cons:
2 levels of politicisation increase favouritism
Intentional neglect considering political affiliation
Running interstate trains would be cumbersome
Small state will get ignored
Passenger facilities will be affected in poor states
Appointment and training of Railway employees will be the biggest challenge