New Delhi (Metro Rail News): Finance Minister Smt. Nirmala Sitharaman will unveil the Union Budget 2025 on February 1.
Expected Growth for Railways
The upcoming Union Budget is anticipated to increase capital expenditure for Indian Railways by 15-20% for FY26, prioritising the efficient utilisation of this year’s allocations. This boost could push the total capital outlay beyond ₹3 lakh crore, surpassing the ₹2.65 lakh crore allocated in the current fiscal year.
Key priorities for the next fiscal year will include commissioning upgraded railway stations, introducing modern train services, and expanding capacity to decongest the track network.
The Union Budget 2025 is anticipated to revolve around the central themes of ‘Amrit Kaal’ and ‘Viksit Bharat’.
Pre-Budget Quote by – Mr. Hari Somalraju ( MD & CEO , SYSTRA INDIA)
“Currently, India is in a transitional phase in the urban transportation segment, and the Union Budget 2025 would go a long way in defining its future. India currently has the third largest metro network in the world with over 1,000 kilometers of network across 23 cities and it aims to be the second largest network with another 1,000 km in pipeline. It is crucial to implement transit-oriented development, which allows the reduction of traffic congestion by 30% and the increase in property values near transit stations by 20%. Delhi-Ghaziabad-Meerut Corridor as well as expansions like Delhi Metro Phase IV demonstrate the government’s commitment to effective urbanisation and mobility solutions.
In the railway infrastructure, there are expected plans and investments in high speed rails, new types of freight transport, renewable energy project plans and modernization of stations. Implementing the Kavach anti-collision system and using AI and IoT on expanding them will improve safety and functionality. Furthermore, capacity building initiatives for PPP and terminal redevelopment by private players will complement the ecosystem.
The next budget is set to be a historical one for the metro and railway sectors particularly focusing on safety, technology, and sustainability. At SYSTRA India, we stand ready to support these initiatives to enable the paradigm shift in India’s transport system for the better to meet the requirements of the future”.
We anticipate that the forthcoming budget will hold great potential and present opportunities for the growth and development of rail infrastructure. It is expected to align with India’s vision of becoming a Developed Nation (Viksit Bharat) by 2047. We encourage industry leaders and stakeholders to share their insights and expectations for the upcoming budget, focusing on key areas such as:
- Rail Infrastructure Expansion
- Integration of Advanced Technologies
- Private sector participation and PPP models
Pre-Budget Quote by – Mr. Vivek Lohia ( MD, Jupiter Wagons Limited )
“As we look ahead to the Union Budget 2025-26, it is imperative that the Ministry of Railways adopts a multi-pronged approach to strengthen freight operations. Accelerating the expansion of Dedicated Freight Corridors (DFCs), including the newly introduced ‘Central India to Coast via DFC,’ will ensure faster, cost-efficient, and reliable freight movement, significantly enhancing the global competitiveness of Indian industries. Increasing the average speed of freight trains to 50 KMPH, deploying advanced 12,000 HP electric locomotives, and increasing the length of freight trains will be pivotal in accelerating freight loading. A strategic focus on railway geography assessments for sectors such as mining, NTPC, petrochemicals, cement, steel, FCI, dry ports, fertilizers, and textiles will ensure that freight operations align with India’s industrial needs.
Photo by Indranil Bhoumik @indralense
Simultaneously, capital expenditure must prioritize modernizing infrastructure, urban rail projects, and innovative strategies such as the real-time information system (RTIS) and the separation of parcel traffic from passenger operations to minimize delays and improve overall efficiency. Dedicated Kisan Rails for perishables will further support agricultural supply chains.
Equally vital are policies that incentivize domestic manufacturing under the ‘Make in India’ initiative. Expanding PLI schemes to include components such as rail wheels, axles, advanced bogies, and high-speed passenger coach components, alongside export incentives, will drive innovation and boost the railways’ global footprint. Additionally, the government should encourage public-private partnerships and provide financing for capacity expansion, fostering long-term growth. Bridging the talent gap in heavy engineering and R&D-focused companies through skill development and training programs will further strengthen the sector.
As Indian Railways progresses toward Net Zero Carbon status, this budget can be a transformative step in driving economic growth and sustainability.”
Pre-Budget Quote by – Mr. Olivier Loison ( MD, Alstom )
“In the last decade, the Government of India has passionately accelerated the nation’s infrastructure development, placing rail at the very heart of its vision. The Prime Minister’s recent, inspiring address, which highlighted the development of modern rail, overall infrastructure, and crucial upgrades in rail safety, fills us with immense hope for the future. This steadfast commitment to strategic investments promises long-term economic growth and unparalleled public service benefits.
As we stand on the cusp of building on the Government’s Viksit Bharat vision, the modernization of urban and mainline rail for both passenger and freight transportation is poised to be a transformative catalyst. We eagerly anticipate new initiatives that champion rail transportation, regional and high-speed trains, and urban mobility solutions. Robust government support for mobility infrastructure, stronger incentives for the Make in India initiative, and opportunities to implement cutting-edge public transport solutions are considerations that will mobilize world-class technology and product creation in India for India and for the world. Alstom’s large workforce, extensive manufacturing and engineering presence, and almost a century of heritage in India empower us to bring global, yet deeply local solutions that resonate with Bharat’s aspirations. We are guided by a sense of purpose and excitement as we look forward to contributing to this grand endeavour.”
Your valuable insights will play a pivotal role in shaping the conversation on the future of rail transportation in India. We eagerly anticipate your perspectives, ideas, and recommendations Share your pre-budget quote to editor@metrorailnews.in.
