Indian Railways is expected to see a 15-20 percent increase in capital expenditure allocation for FY26, supporting infrastructure growth.
Indian Railways is likely to receive a 15-20 percent increase in capital expenditure allocation for FY26, raising the total to over INR 3 lakh crore, compared to INR 2.65 lakh crore in the current fiscal year. The upcoming Union Budget, to be presented by Finance Minister Nirmala Sitharaman on February 1, is expected to prioritise key initiatives like upgrading railway stations, introducing modern trains, and alleviating track congestion. The budget may also include additional financial support for the Mumbai-Ahmedabad bullet train project to accelerate its progress.
With about 80 percent of the current fiscal year’s INR 2.65 lakh crore capital expenditure already utilised, Indian Railways is poised to meet its targets ahead of schedule. The FY26 budget is anticipated to focus on expanding track infrastructure, modernising existing facilities, and increasing public-private partnership investments, encouraging private sector participation in rail infrastructure development amid the nation’s slowing economy.
