Budget 2026: The much-awaited India’s Union Budget would be presented by Union Finance Minister Nirmala Sirtharaman on February 1. The railways are expected to stay a big priority in the upcoming budget with more launches of Namo Bharat, Vande Bharat and Amrit Bharat in the pipeline.
The railways outlay for the upcoming budget is expected to witness a calibrated surge of approximately 5-7 percent. This may take the overall allocation to about ₹2.65-2.90 lakh crore, including extra-budgetary resources.
Industry experts believe that capital deployment after electrification nearing completion is expected to get redirected toward easing gauge conversion, easing congestion via new lines, the expansion of dedicated economic & freight corridors and doubling of rail tracks.
Budget 2026-The Future Ahead
From an industry standpoint, regulatory simplification, continued capital support, deeper private sector involvement and a more enabling and streamlined framework for private-public partnerships is expected. It will be helpful to determine how effectively police intent gets translated into on-ground execution.
Last year, the allocation for railways was ₹2.65 lakh crore, unchanged from the previous year. But, investments in joint ventures and public sector units as well as spending allocation for passenger amenities were minimized.
The Indian government is expected to focus on areas like signalling upgrades, electrification, track expansion, freight efficiency and station redevelopment. It is believed that EPC segments and rail infrastructure may gain the most with the upcoming budget.
