Ahead of the Union Budget 2025 announcement on February 1, infrastructure and development experts are hopeful for a comprehensive boost in the railway sector. Industry watchers also anticipate a boost in road networks, renewable energy, power transmission, defense, and new-age infrastructure such as data centers, in addition to the railway sector. Here’s what’s in store for you in Asia’s largest railway network.
What Will The Railway Get?
The industry emphasized the necessity of deploying cutting-edge 12,000 HP electric locomotives and raising the average freight train speed to 50 kmph.
According to an ET NOW report, the government is going to continue its focus on infrastructure upgrade and expansion and the key areas going to be the railways. In the upcoming Union Budget, the government is likely to increase budgetary allocation for railways by 15 to 20 per cent and the total outlook is expected to touch Rs 2.8 lakh crore.
Analysts forecast a 15-20 percent year-on-year increase in the railway budget, pushing it to Rs 3 lakh crore. In the Union Budget 2024-25, presented on July 23, the Railway Ministry received a record allocation of just over Rs 2.62 lakh crore for capital expenditure. By January 5, approximately Rs 2 lakh crore of the allocated budget had already been utilized.
Bullet Trains, Vande Bharat Trains, and Cargo Rail
An increase in funding for the Bullet Train project, improvements to the KAVACH safety system, and the integration of artificial intelligence for operations like ticketing are expected in the Union Budget 2025. Regarding cargo infrastructure, the Finance Minister is anticipated to announce measures that will attract private sector investments, such as accelerating the Amrit Bharat Station Redevelopment Scheme and the development of Gati Shakti Multi-Modal Cargo Terminals (GCT).
With more investment in roads and railways, analysts predict an 8 to 10 percent increase in demand for cement. They also believe the industry will benefit from tax incentives aimed at encouraging the adoption of green cement technologies.
Railway Budget 2025: Focus on Safety, Kavach Rollout
The Ministry of Railways will continue to prioritize safety, with the national transporter expected to allocate Rs 15,000 crore in the upcoming budget for this important area. Union Minister Ashwini Vaishnaw had previously mentioned that the ₹1.08 lakh crore allocated in the Budget 2024 would be used to enhance safety. A significant portion of this funding, according to the minister, would go towards upgrading the ‘Kavach 4.0’ safety system as part of the broader safety improvements.
Kavach
Kavach, an Automatic Train Protection (ATP) system developed domestically, was designed to revolutionize railway safety across India. The system’s core function is to prevent train collisions and derailments by using a combination of GPS, RFID, and data loggers to monitor train movements in real-time.
Focus On Rail Connectivity To Kashmir
A statement on the rail connectivity to Srinagar is also expected in the budget. Udhampur-Srinagar-Baramulla Rail Link (USBRL) is expected to get a boost in the budget. The prestigious project was completed in December 2024 and the first train is set to hit the tracks soon between Jammu and Srinagar.
Mumbai-Ahmedabad High-Speed Rail Corridor
The Mumbai-Ahmedabad High-Speed Rail Corridor, commonly known as the bullet train, may receive increased funding this year to speed up its completion.
Vande Bharat Sleeper
In the Union Budget 2025-26, the government may focus on increasing the production of Vande Bharat Sleeper trains, which are designed for longer distances and overnight travel. New routes for Vande Bharat and Amrit Bharat Express trains are also expected. According to various reports, 10 Vande Bharat sleeper and 100 Amrit Bharat Express trains will likely be announced in the Budget.
