The budgetary allocation for Indian Railways in the budget assumes critical importance to transform Indian Railways into a world-class system capable of meeting rising demand and complementing India’s economic growth.
It should be noted that around 40% of Indian Railways’ capital expenditure is supported through budgetary allocations from the union government, underscoring the critical role of these funds. During this budget, there is considerable anticipation regarding the allocation of funds towards the modernization, safety, and expansion of Indian Railways.
Railway Budget 2025: Key focus areas
During this budget, the focal areas include modernisation of Indian Railways, developing freight corridors, rolling stock, safety measures, and robust infrastructure. These key areas collectively form the foundation for a world-class railway system capable of meeting the demands of a growing economy.
Dedicated freight corridors need of the hour
Dedicated Freight Corridors (DFCs) is the need of the hour for the rail network expansion as it represents a transformative initiative to improve freight efficiency and reducing logistical costs. In this regard, two flagship projects—the Eastern DFC (connecting Punjab to Bihar) and the Western DFC (linking Maharashtra to Uttar Pradesh)—have already achieved significant milestones and the the Eastern corridor fully operational and large sections of the Western corridor functioning.
The next phase of rail network development should focus on new corridors, such as the East-West (Maharashtra to West Bengal), North-South (Haryana to Tamil Nadu), and East Coast (West Bengal to Andhra Pradesh) DFCs, as envisioned in the National Rail Plan.
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