The Indian Railways is entering a transformational phase, with considerable expenditures and modernization efforts to improve infrastructure, safety, and passenger experience. The unprecedented capital spending allocated in the Union Budget 2024–25 demonstrates the government’s determination to raise Indian Railways to world-class levels.
The government has prioritized transforming Indian Railways into a world-class entity. In the Union Budget 2024–25, presented by Union Minister for Finance and Corporate Affairs Nirmala Sitharaman on July 23, 2024, a record capital expenditure (capex) of ₹2,62,200 crores has been allocated to the Railways.
The gross budgetary support for the same period is set at ₹2,52,200 crores, a significant increase from ₹2,40,200 crores in 2023–24 and a substantial rise from ₹28,174 crores in 2013–14.
Key projects, such as the Amrit Bharat Station Scheme, locomotive and coaching stock modernization, and upgraded safety measures implementation, are critical stages toward realizing this objective.
The Rail Land Development Authority’s initiatives to optimize land usage add to the overall development of the railway network. These comprehensive initiatives are expected to not only improve train efficiency and safety but also contribute to India’s overall economic growth and connectivity goals.
The infusion of Capex has produced amazing results, with Indian Railways loading an all-time high of 1,588 million metric tons (MT) in FY 2023-24, up from 1,095 MT in 2014-15. The railway aims to reach 3,000 MT by 2030. In 2023-24, Indian Railways recorded an all-time high total receipt of ₹2,56,093 crores and a net revenue of ₹3,260 crores, which will support Capex.
Indian Railways has achieved important milestones over the last decade, including the commissioning of 31,180 rail kilometers. The rate of track laying has risen from 4 kilometers per day in 2014-15 to 14.54 kilometers per day by 2023-24. Furthermore, 41,655 route kilometers (RKMs) have been electrified between 2014 and 2024, compared to only 21,413 RKMs before 2014.
This year’s budget also includes additional funds to stimulate industrial development, with a focus on infrastructure to assist industrial clusters in strategic locations.
Key nodes include Kopparthy on the Visakhapatnam-Chennai Industrial Corridor, Orvakal on the Hyderabad-Bengaluru Industrial Corridor in Andhra Pradesh, and Gaya on the Amritsar-Kolkata Industrial Corridor in Bihar. These measures aim to encourage industrial growth, particularly in eastern India.
Under the PM Gati Shakti Mission, Indian Railways has adopted a new approach to infrastructure development. Three Economic Railway Corridors—Energy, Mineral, and Cement Corridors (192 projects); Port Connectivity Corridors (42 projects); and High Traffic Density Corridors (200 projects)—have been identified.
The priority is still on increasing capacity, decongesting high-density networks, lowering logistics costs, and improving passenger experience and safety.
