Railways on Track for Transformation: Anticipations from the Union Budget 2025-26

With the Union Budget 2025-26 nearing, industry leaders expect impactful announcements for the railway sector, particularly in freight operations and infrastructure. The focus includes enhancing train speed, modernizing infrastructure, and sustainable practices. A potential boost in the railway budget is anticipated to propel India's logistics share significantly.

As the Union Budget 2025-26 approaches, industry stakeholders are eagerly awaiting pivotal announcements for the railway sector, particularly in freight operations and infrastructure advancement. The industry is advocating for increased freight train speeds to 50 kmph and the deployment of powerful 12,000 HP electric locomotives to enhance efficiency.

Sudipta Mukherjee, Managing Director of Texmaxo, expressed optimism for a substantial wagon order, building on a previous government announcement of nearly 1.2 lakh wagon orders over three years. Mukherjee hopes for a renewed mega order to increase railway logistics' share to 45 per cent from the current 26-27 per cent.

Additionally, Vivek Lohia of Jupiter Wagons Limited emphasized a holistic strategy to boost freight operations, advocating for the swift expansion of Dedicated Freight Corridors such as 'Central India to Coast via DFC'. The sector anticipates a significant increase in railway budget allocation to further support infrastructure modernization and sustainable practices.

(With inputs from agencies.)