Union Railways and Electronics & IT Minister Ashwini Vaishnaw has announced that the Indian Railways is set to expand significantly in the coming years following the Union Budget 2025-26. He called the budget “amazing” and highlighted the government’s ambitious plan for the rail sector. With a substantial allocation for the Indian Railways, the country can expect the introduction of several new trains and modern coaches, which will revolutionize travel for millions of citizens.
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Budgetary support for the Indian Railways for FY 2025-26
The Union Finance Minister Nirmala Sitharaman allocated a whopping Rs 2,52,000 crore as gross budgetary support for the Indian Railways for FY 2025-26, marking the second consecutive year with such a high allocation. The minister emphasized that this funding would enable the railways to provide safer, faster, and more comfortable travel options across India. He further stated that the country’s rail network will see the introduction of:
• 200 new Vande Bharat trains
• 100 Amrit Bharat trains
• 50 Namo Bharat rapid rail services
• 17,500 general non-AC coaches over the next two to three years
These new trains and coaches will particularly benefit the low and middle-class populations by providing affordable and comfortable travel options.
Focus on Safety and Infrastructure Development
In addition to the new trains, the 2025-26 Budget earmarks significant investments in safety measures and infrastructure development for Indian Railways. A total of Rs 4,60,000 crore has been allocated for infrastructure projects, which include expanding rail routes, building new stations, and modernizing existing facilities. Among these, Rs 1,16,000 crore will be used specifically for improving safety on the network, including the installation of new signaling systems and upgraded track infrastructure.
Vaishnaw also pointed out the government’s commitment to reducing the income tax burden on the middle class, which will help improve their financial situation and, indirectly, their access to better transportation options. The minister praised the budget’s efforts to create jobs and provide relief to the middle class while simultaneously focusing on long-term infrastructural growth.
Increased Budget for Debt Servicing and National Projects
In terms of financial management, the Reimbursement of losses for the operation of strategic lines is pegged at Rs 2,739.18 crore for FY 2025-26, compared to Rs 2,602.81 crore in the previous fiscal year’s revised estimates. Additionally, Rs 706 crore is allocated for debt servicing related to market borrowings for national projects. The net revenue expenditure for Indian Railways is projected to reach Rs 3,02,100 crore, up from Rs 2,79,000 crore in the revised estimates of FY 2024-25.
The gross budgetary support for Indian Railways has seen significant growth. It is almost 9 times higher than what it was in 2013-14, when the allocation was only Rs 28,174 crore. This increase in funding will allow Indian Railways to modernize its operations and improve services, bringing long-term benefits to the economy.
Freight and High-Speed Rail Initiatives
On the freight front, Indian Railways is set to become the second-highest freight-carrying railway globally. The rail network is expected to transport 1.6 billion tonnes of cargo by the end of the current fiscal year. This achievement is significant in terms of logistics and economic growth, as it will bolster the nation’s supply chains and trade capabilities.
Furthermore, India is making strides in high-speed rail infrastructure. The government has set ambitious goals for high-speed trains, aiming for a 7,000 km high-speed rail network by 2047, capable of supporting trains that travel at 250 km per hour. This initiative, which will provide faster and more efficient travel options, is a major step in transforming the nation’s rail network into one of the world’s most advanced and efficient systems.
With a record allocation in the Union Budget 2025-26, the Indian Railways is poised for a major transformation, which will benefit millions of people across the country. The focus on expanding the rail network with modern trains, boosting safety, and increasing freight capacity reflects the government’s commitment to improving public transportation and infrastructure. The introduction of Vande Bharat trains, Amrit Bharat trains, and the ambitious high-speed rail network promises a bright future for rail travel in India, making it faster, safer, and more accessible for all.
