Indian Railways Enters Era of “Super-Fast Transformation” with Record Budget Allocation

Guwahati, 18^th March, 2026:

               Indian Railways is undergoing an unprecedented phase of expansion and modernisation, backed by a record allocation of Rs 2.78 lakh crore in the Union Budget 2026–27. Responding to the discussion in Parliament on the Demands for Grants, Union Railway Minister on 17^th March, 2026 highlighted that the merger of the Railway Budget with the General Budget has brought transformational changes. He stated that this reform has enabled a sharp increase in budgetary support, ensured continuous decision-making throughout the year, and improved transparency through institutional monitoring involving Ministry of Finance and NITI Aayog, marking a shift from “slow growth” to “super-fast transformation”.

The Minister noted that despite substantial expenditures on staff, pensions, energy and finance, Indian Railways continues to maintain a modest surplus. Electrification has played a key role in improving efficiency resulting in annual savings of around Rs 6,000 crore while reducing dependence on diesel. Over the past decade, freight loading has increased significantly to around 1,650 million tonnes, making Indian Railways the second-largest freight carrier globally. Track construction and electrification have also accelerated, with approximately 35,000 km of new tracks laid and over 99% of the network electrified.

The Minister also emphasised that safety remains a core priority, with railway accidents reduced by nearly 90% due to focused investments and systematic reforms. The number of Road Over Bridges and Road Under Bridges has increased substantially, alongside expansion of automatic signalling. He also highlighted the progress of Kavach, the indigenously developed Automatic Train Protection system, which is being deployed across thousands of kilometres and locomotives to enhance operational safety.

The minister highlighted several strategically important connectivity initiatives across the country. He noted that plans are being developed for a 30 km underground double-line corridor in the Siliguri corridor to ensure uninterrupted connectivity during critical situations. Along the India–Nepal border, multiple doubling and capacity enhancement projects, including the Narkatiaganj–Raxaul–Sitamarhi–Darbhanga–Muzaffarpur section, are being undertaken to strengthen cross-border connectivity and regional development. In the North Eastern region, key projects such as the preparation and completion of DPRs for new lines including Lanka–Silchar and Dekargaon–Silghat are progressing, along with ongoing surveys and construction works for additional lines between New Jalpaiguri and Kamakhya. He further stated that international connectivity initiatives, including proposed rail links with neighbouring countries such as Bhutan, are also being actively pursued.

The Minister further highlighted advancements in rolling stock, infrastructure and passenger services. Production of modern LHB coaches, locomotives and wagons has reached record levels, while over 160 Vande Bharat and 60 Amrit Bharat trains are currently in operation. Dedicated Freight Corridors have significantly improved logistics efficiency and tunnel construction in difficult terrains such as the Northeast and Jammu & Kashmir has enhanced connectivity. Indian Railways now operates over 25,000 trains daily across a vast network, while continuing to provide affordable travel through significant passenger subsidies and expanded general and sleeper class services.

Highlighting future growth, the Minister stated that Indian Railways is leveraging technology, including AI and digital platforms such as the RailOne App, to improve services and efficiency. Major initiatives such as station redevelopment, PM Gati Shakti-based planning and high-speed rail projects like the Mumbai–Ahmedabad Bullet Train are progressing rapidly. He emphasised that continued cooperation with State Governments, especially in land acquisition, will be crucial for timely project execution. Acknowledging the contribution of 12.5 lakh railway employees, he reiterated that the ongoing transformation reflects a collective effort to build a modern, safe and globally competitive railway system.