Railway Budget 2026: Record ₹2.93 Lakh Crore Investment to Transform Indian Railways

Indian Railways has received its highest-ever financial support in the Union Budget 2026-27. Presenting the Budget, Finance Minister Nirmala Sitharaman announced a massive boost for rail infrastructure. With record capital expenditure and ambitious plans for high-speed rail corridors, the government has signalled that railways will remain central to India’s growth strategy. The focus is not only on faster trains but also on expanding capacity, improving safety, and modernising the railway network across the country.

Record Allocation Explained: Capex vs Total Outlay

• For the financial year 2026-27, the Ministry of Railways has been provided ₹2,93,030 crore as capital expenditure (capex).
• This funding is meant for long-term asset creation such as new railway lines, doubling of tracks, rolling stock, and station redevelopment.
• The total outlay, which includes both capital and revenue expenditure, stands at ₹2,78,030 crore.
• This unprecedented allocation highlights the government’s continued priority on rail-led infrastructure growth and logistics efficiency.

Seven High-Speed Rail Corridors Announced

• A major highlight of Railway Budget 2026 is the proposal to develop seven high-speed rail corridors across India.
• These corridors aim to significantly reduce travel time between major cities and promote regional economic integration.
• The proposed routes are Mumbai-Pune, Pune-Hyderabad, Hyderabad-Bangalore, Hyderabad-Chennai, Chennai-Bangalore, Delhi-Varanasi, and Varanasi-Siliguri.
• These corridors will complement existing rail infrastructure and support India’s long-term vision for faster and cleaner transport.

Focus Areas for Capital Expenditure

• The increased budgetary support will be channelled into several priority areas.
• These include construction of new railway lines, doubling and gauge conversion of existing routes, traffic facilities, and procurement of modern rolling stock.
• Investment will also support signalling upgrades, station modernisation, and capacity enhancement on high-density routes. T
• ogether, these measures aim to improve punctuality, safety, and passenger comfort while supporting freight movement.

Key Summary at a Glance

Aspect	Details
Why in News?	Record allocation to Railways in Budget 2026
Capex Allocation	₹2.93 lakh crore
Total Outlay	₹2.78 lakh crore
New Proposal	7 high-speed rail corridors
Key Focus	Expansion, modernization, capacity building

Question

Q. What is the capital expenditure allocation for Indian Railways in Budget 2026?

A. ₹1.75 lakh crore
B. ₹2.10 lakh crore
C. ₹2.93 lakh crore
D. ₹3.50 lakh crore