Union Budget 2025-26: Shifting Tracks Towards Railways

The upcoming Union Budget for 2025-26 is set to prioritize the railway sector over highways, marking a significant redirection in infrastructure investments. This decision is fueled by railways’ environmental advantages and cost-effectiveness in freight transport, prompting increased funding to bolster rail networks.

In a striking shift in infrastructure priorities, the Union Budget for 2025-26 is expected to favor the railways sector over highways, according to a new report by Nuvama. This decision could lead to a reprioritization of budgetary allocations, historically weighted towards highways.

The report notes that the previous fiscal year saw a massive allocation of Rs 2.70 lakh crore for highways. However, the forthcoming budget anticipates a heightened focus on railways, aligning their allocations with highways, as railways last year already received a record Rs 2.5 lakh crore.

Advocates highlight the environmental benefits of rail over road transport, noting that freight trains can significantly reduce greenhouse gas emissions. As the government addresses infrastructure deficiencies, there's hope for enhanced rail connectivity, aiming for a greener and more efficient logistics framework.

(With inputs from agencies.)