A record capital expenditure of Rs 2,93,030 crore has been planned for Indian Railways in Union Budget 2026–27. This is the highest-ever capex as well as allocation for Indian Railways.
Historic Capex!
A robust capital expenditure of Rs 2,93,030 cr has been given to the Railways to drive infrastructure-led growth and accelerate the vision of Viksit Bharat. The allocation underscores the Government’s continued focus on strengthening railway infrastructure, expanding capacity and enhancing passenger safety. It reflects the emphasis on leveraging rail infrastructure as a key driver of economic growth and logistics efficiency. The sustained investment push aims to improve freight movement, reduce logistics costs, decongest high-density corridors and enhance passenger experience through modern trains and redeveloped stations.
As part of its long-term vision, the Government has announced the development of seven high-speed rail corridors between cities as ‘growth connectors’ to promote environmentally sustainable passenger transport systems. These corridors include Mumbai–Pune, Pune–Hyderabad, Hyderabad–Bengaluru, Hyderabad–Chennai, Chennai–Bengaluru, Delhi–Varanasi and Varanasi–Siliguri.
The proposed corridors are expected to significantly reduce inter-city travel time and facilitate seamless, multimodal movement of passengers.
7 High-Speed Rail Corridors as growth connectors between cities
Mumbai to Pune
Pune to Hyderabad
Hyderabad to Bengaluru
Hyderabad to Chennai Chennai to Bengaluru
Delhi to Varanasi
Varanasi to Siliguri
With the announcement of the new corridors, the rail-based transportation ecosystem is expected to undergo a paradigm shift. In South India, the Chennai–Bengaluru–Hyderabad high-speed network will form a South High-Speed Triangle (or Diamond), connecting major economic and IT hubs. Union Minister for Railways, Information & Broadcasting, and Electronics & Information Technology, Ashwini Vaishnaw, addressing the media at Rail Bhawan recently said that travel times will be significantly reduced.
New East–West Dedicated Freight Corridor
Vaishnaw said that Chennai–Bengaluru will take about 1 hour 13 minutes, Bengaluru–Hyderabad around 2 hours, and Chennai–Hyderabad around 2 hours 55 minutes. This network is expected to serve as a powerful growth multiplier for Karnataka, Telangana, Andhra Pradesh, Tamil Nadu, Kerala and Puducherry, significantly boosting regional development.
In western and central India, the upcoming Mumbai–Pune high-speed corridor will reduce travel time to around 48 minutes, effectively integrating the two major urban centres. Further connectivity from Pune to Hyderabad in around 1 hour 55 minutes, and onward links to southern hubs, will create a continuous high-speed spine across regions, benefiting passengers and regional economies alike.
In northern and eastern India, the Delhi–Varanasi high-speed corridor will enable travel in around 3 hours 50 minutes. Further, the high-speed rail corridor from Varanasi via Patna to Siliguri in West Bengal will enable travel between Varanasi and Siliguri in about 2 hours and 55 minutes. This connectivity is expected to create a new economic corridor across the belt spanning Delhi, Uttar Pradesh, Bihar and West Bengal, significantly boosting regional development and economic activity.
Vaishnaw said that, together, the seven high-speed corridors span nearly 4,000 kilometres and are expected to attract investments of approximately Rs 16 lakh crore, positioning railways as a central pillar of future mobility.
In a major boost to freight movement and logistics efficiency, the Union Budget also proposes a new Dedicated Freight Corridor connecting Dankuni in West Bengal with Surat in Gujarat, passing through Odisha, Chhattisgarh, Madhya Pradesh and Maharashtra. This 2,052-km corridor will integrate with the existing Western Dedicated Freight Corridor, enabling seamless movement of goods to ports along the west coast. The Union Minister noted that the existing Eastern and Western DFCs are already operating at near-saturation levels, handling around 400 freight trains daily, necessitating additional corridors to meet future demand.
A new Dedicated Freight Corridor linking Dankuni (West Bengal) to Surat (Gujarat) to enhance seamless East-West trade and logistics efficiency.
This East–West corridor will strengthen seamless trade flows across regions, decongest existing rail networks and enhance the efficiency of goods transportation, thereby supporting industrial growth and supply chains.
Safety Receives Major Funding Boost
The Union Minister has highlighted that safety remains the top priority, with nearly Rs1.20 lakh crore earmarked exclusively for safety-related works. The Union Minister noted that sustained investments over the years have already yielded results, with railway accidents reduced by nearly 95 per cent. He stated that the Government is now intensifying efforts to further strengthen safety outcomes. The focus areas include enhanced track, locomotive, wagon and coach maintenance, rapid deployment of the Kavach automatic train protection system, installation of CCTV cameras, upgradation of overhead electrical (OHE) systems, station redevelopment, and improved customer care and passenger facilities.
The Union Minister said that propulsion systems are the most critical component of railway technology, and that propulsion systems designed and manufactured in India are now being exported to the top countries including USA, Switzerland, Germany, France and Spain.
The Union Minister also highlighted record achievements in infrastructure creation, including construction of 35,000 km of new tracks, 47,000 km of electrification, and electrification coverage exceeding 99.5 per cent of the broad-gauge network. He said manufacturing of Vande Bharat sleeper and chair car trains, Amrit Bharat and Namo Bharat trains, along with record induction of wagons, is progressing at an unprecedented pace.
Emphasis on Sustainability
Emphasising sustainability, Vaishnaw stated that rail transport is nearly 95 per cent less polluting than road transport, aligning closely with the Government’s environmental and climate commitments and reflecting the Prime Minister’s vision of railways as a green mode of mass transport.
According to minster,the record allocation reinforces the role of Indian Railways as a backbone of national development, economic growth and inclusive connectivity. With the initiatives outlined in Union Budget 2026–27, Indian Railways is poised to play a decisive role in nation-building by delivering faster connectivity, efficient logistics and resilient infrastructure in line with the vision of Viksit Bharat.
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