Union Budget 2025-26: Indian Railways to Witness Historic Expansion with Big Allocation

New Delhi: The Union Budget 2025-26 has set the stage for Indian Railways’ transformative expansion, with a historic allocation of ₹2,52,000 crore for the financial year (FY) 2025-26. This marks the second consecutive year of this substantial allocation, which is expected to revolutionize rail travel across the country by making it faster, safer, and more comfortable.

The massive allocation will pave the way for the introduction of 200 Vande Bharat trains, 100 Amrit Bharat trains, 50 Namo Bharat rapid rail systems, and the addition of 17,500 general non-AC coaches over the next two to three years. These upgrades are designed to cater to the growing demand for better rail travel, especially for the middle and low-income groups across the country.

Union Minister Ashwini Vaishnaw Commends the Budget

Expressing gratitude, Union Minister for Railways, Ashwini Vaishnaw, called the Union Budget “amazing” and thanked Prime Minister Narendra Modi and Union Finance Minister Nirmala Sitharaman for their continued support in allocating this substantial amount for the railways. He emphasized that these new trains and modernized coaches would significantly enhance services for the lower and middle-class people of India.

Speaking to the media after the budget announcement, Vaishnaw highlighted the Union Budget as a roadmap for India’s vision of “Viksit Bharat.” The budget outlines infrastructure development projects for the railways worth ₹4,60,000 crore, marking a significant step toward modernizing the country’s transport infrastructure.

Focus on Safety and Infrastructure Development

The budget also dedicates ₹1,16,000 crore to improving the safety of Indian Railways, signaling the government’s commitment to ensuring passenger safety across the vast railway network. This allocation will fund various safety enhancement projects, including the installation of advanced safety systems, track upgradation, and other safety measures.

The railway sector will also benefit from ₹10,000 crore from extra-budgetary resources, pushing the total capital expenditure (Capex) to ₹2,62,000 crore. This amount will fund the procurement of new assets, replacement of old infrastructure, and construction of new facilities.

Dedicated Budget for Safety and Debt Servicing

The Union Budget allocates ₹200 crore from the Nirbhaya Fund to ensure safety measures for women passengers, further demonstrating the government’s commitment to enhancing the safety of the railways. Additionally, ₹2,739 crore has been set aside for the reimbursement of losses incurred on strategic railway lines. The debt servicing for National Projects will be allocated ₹706 crore in FY 2025-26.

Indian Railways on Track to Become Freight Leader

Minister Vaishnaw also revealed that Indian Railways is on track to become the second-highest freight-carrying railway globally, with an expected cargo haul of 1.6 billion tonnes by the end of this fiscal year. He added that the railways’ freight capacity would continue to grow, ensuring a steady supply of goods and services for the Indian economy.

High-Speed Rail and Sustainability Goals

Aiming for a future of high-speed rail travel, the government has set a target of creating a 7,000 km high-speed rail network by 2047, which will support trains running at speeds of up to 250 km per hour. Vaishnaw further announced that Indian Railways is set to achieve 100% electrification by the end of FY 2025-26, a crucial step toward sustainable transport.

In line with the government’s green energy initiatives, the Railway Minister also pointed out that Indian Railways will take a leading role in utilizing Small Modular Reactors (SMRs) as a non-fossil fuel source to support the electrification process.

A Vision for the Future of Indian Railways

With these ambitious reforms, Indian Railways is poised for a transformative journey that will not only improve travel comfort and safety but will also contribute significantly to the nation’s economic growth and sustainability. The historic allocation in the Union Budget 2025-26 will serve as a catalyst for growth, setting the stage for a modernized, world-class railway system.