Union Budget for India Railway in 2025

Finance Minister Nirmala Sitharaman presented the Union Budget for the fiscal year 2025-26 on February 1, 2025. Indian Railways have been allocated with Rs.2.52 lakh crore and the budget also include the plan to manufacture of 200 Vande Bharat trains in both sleeper and chair car configuration.

Updated On - 06 Sep 2025

The Indian Railways can be called the lifeline of India's transport system, connecting villages, towns, and cities across the country in a cost-effective and efficient manner. Every year, the Union Budget is a highly anticipated event with all eyes set on the proposals for the railways in the latest budget. These will set the tone for new development projects to enhanced levels of safety and comfort for passengers.

Highlights of Union Budget FY 2025-2026

Here are the major highlights about the railway budget mentioned under the Union Budget FY 2025-2026:

  1. Indian Railways received Rs.2.52 lakh crore in Budget FY 2025-2026.
  1. Approval received for the following:
  1. 17,500 general coaches
  1. 200 Vande Bharat trains
  1. 100 Amrit Bharat trains
  1. Project of Rs.4.60 lakh crore will be completed in next three to four years that will include quadrupling, doubling, infrastructure improvements, encompassing new lines, and station redevelopment.
  1. To enhance the short-distance connectivity between the cities, the budget includes the plan of manufacturing 100 Amrit Bharat trains, 200 Vande Bharat trains, and 50 Namo Bharat trains in both chair car and sleeper car configuration.
  1. 1400 out of 17,500 general coaches would be ready by 31 March and additionally, approvals for 1000 new flyovers have also been provided.
  1. Railway electrification is expected to be completed by the end of this financial year.
  1. A cargo capacity of 1.6 billion tonnes is expected to reach by 31 March 2025, thereby positioning Indian railways the second-largest cargo carrying railway globally after China.
  1. Safety investment is expected to reach Rs.1.16 lakh crore in the next financial year and has seen an increase from Rs.1.08 lakh crore to Rs.1.14 lakh crore.
  1. Comprehensive initiative for railway development is represented through PPP (Public Private Partnership) investment that amounts to Rs.2.64 lakh crore.

Proposals for Railways in Union Budget for FY 2023-24

The Union Budget highlights with respect to the Indian Railways are mentioned below:

  1. A total of Rs 2.40 lakh crore has been earmarked in capital expenditure for the Indian Railways in the Union Budget 2023-24. This is approximately nine times the amount spent in fiscal year 2013-14. 
  2. Capex will rise more over the next few years and the railway system will evolve as a national growth engine.
  3. Increased private investment will be made in the infrastructure sector of the railways. The Infrastructure Finance Secretariat, which has been developed recently will support all stakeholders like roads, power, railways, and urban infrastructure which rely primarily on government resources.
  4. The Union Budget 2023-24 is expected to benefit the middle-class sector since railways are not likely to increase passenger ticket or freight fares.
  5. A comprehensive description of the Indian Railways' budget estimates, allocations, revenue, and annual statements will be provided by the finance minister.
  6. The Railway budget 2023 is likely to encourage the Make in India effort and to emphasise the importance of renewable energy.
  7. The Indian Railways has designed an autonomous railway protection system called Kavach (Train Collision Avoidance System). This system will focus on preventing accidents caused by human errors.
  8. By 2030, the Indian Railways aims to become a Net Zero Carbon Emitter. It intends to lower its carbon footprint and reliance on imported fuel, while saving foreign exchange.
  9. The Indian Railways is introducing Kavach in stages. It has been implemented for 1,455 route km on the South Central Railway with 77 locomotives till 23 December 2022. Kavach work is underway on the Delhi-Mumbai and Delhi-Howrah sectors (3000 route km).
  10. The railway track doubling between Surendranagar and Rajkot is nearly complete. The Ministry of Railways states that 92% of the 116.17 km long doubling project is finished.
  11. The Udhampur Srinagar Baramulla Rail Link (USBRL), which was implemented to build a broad-gauge railway line over the Himalayas is now 90% finished. Through this project, Kashmir will be connected to other parts of India.
  12. The Sivok-Rangpo New Broad-Gauge Rail Line Project is now more than half completed. Sikkim will be connected to the rail network with the help of this project. This railway line will stretch 44.96 km from Sivok to Rangpo. A small railway line of 41.55 km will stretch in Sikkim.
  13. The introduction of Vande Bharat Express has brought a significant improvement in terms of speed and convenience. Because of its rapid acceleration and deceleration, the train may reach a maximum speed of 160-180 km per hour. With these trains, the journey time will be reduced by 25% to 45%.
  14. In the coming three years, 400 new-generation Vande Bharat Express trains will be constructed and manufactured. Additionally, more money will be allocated for the new Vande Bharat trains and the sleeper-class Vande Bharat 2.0.

Proposals for Railways in Union Budget for FY 2021-22

These are the highlights of the proposals for the Indian Railways in the latest Union Budget:

  1. Rs.1.1 lakh crore was allocated to the Indian Railways out of which capital expenditure would account for Rs.1.07 lakh crore
  2. A National Rail Plan was submitted by the Indian Railways to the government as a framework to ensure that the railways match the country's evolving requirements and changing global standards
  3. Metro services will be offered in two variants - Metro Neo and Metro Lite, in tier II and tier III cities as well as peripheral areas for a more cost-effective experience while maintaining the same standards of safety and efficiency
  4. The Eastern Dedicated Freight Corridor (EDFC) and Western Dedicated Freight Corridor (WDFC) would be commissioned in a Public Private Partnership (PPP) model by June 2022. This would include 274.3 km of the WDFC in the Gomoh-Dankuni section and 263 km of the EDFC in the Sonenagar-Gomoh section
  5. The Railways will start other dedicated freight corridor projects such as the East-West Corridor from Bhusawal to Kharagpur to Dankuni, the East Coast Corridor from Kharagpur to Vijaywada, and the North-South Corridor from Itarsi to Vijaywada
  6. Broad gauge route electrification will be completed in full by December 2023
  7. On the tourist routes, Vistadome Linke Hofmann Busch coaches will be introduced for enhanced aesthetic appeal and comfort
  8. Kochi Metro Railway's Phase 2 project will commence soon at a cost of Rs.1,957.05 crore for a total of 11.5 km
  9. There will be continued investment and development of the metro rail system in cities like Chennai, Kochi, Nagpur, and Nashik
  10. The Bangalore Suburban Railway network will be developed which will help resolve traffic challenges for the IT sector

Proposals for Railways in Budget for FY 2020-2021

For Indian Railways:

  1. Re-development project to be undertaken for the betterment of 4 stations through the PPP models.
  2. Development of solar capacity in Indian Railways.
  3. Plans to be executed for the development of more projects like Tejas for connecting various tourist locations across the country.
  4. Bengaluru Suburban Transportation project to be launched wherein the Government will be spending Rs.18,600 crore.

Major Expectations for Railways from the Union Budget for FY 2020-2021

  1. Safety: A surge in the number of rail accidents has definitely raised the concern for better and improved rail infrastructure in India. In the previous year, the total count of train accidents rose to an alarming number of 48. Therefore, owing to these reasons, the railways sector is expected to get the maximum attention amongst all sectors. The expectation mainly lies in the domains of increasing precautionary measures, an upgraded infrastructure at the railway stations as well as inside the trains, improved facilities provided by executives serving inside the trains, new and advanced technical systems to signal warning in case of emergencies. The Indian Railways has already established a GPS based navigation system to better track, delays and accidents caused by fog. Deployment of drones in the railway stations for an improved crowd management is also on the agenda list. If allocations in these spheres get their due approval, we are sure to witness the most technologically advanced modern Railway network.
  2. Comfort: Despite installations of bio-toilets and upgraded infrastructure, the condition of the trains remain poor and highly contaminated. In an age where more and more people are shifting towards travelling via flights, a clean and dirt-free train journey can go a long way in ensuring that people of the country stick to traveling via railways.
  3. Cost: With the gradual approach of the 2020 general elections, the Modi government might consider reducing the existing fees for reservation but a major concern lies in the fact that the dip in the generation of revenue might effectively hamper the Railways in the future.
  4. Convenience: The "golden quadrilateral" project aims to connect all the metro cities through a single unified railway network. The same is believed to receive a huge chunk in the funds allocation and is likely to commence this year itself.
  5. Technology: Railways automation signalling system is expected to receive a huge allocation in this year's Budget.

Indian Railways is expected to make a major breakthrough this year with advanced technology and improved infrastructure.

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