After decades of under-investment, the Indian Railways has embarked on a Rs 8.56 tn capex plan over FY16-20F, which is ~3.5x the actual capex during FY11-15. While Nomura estimates an actual cash spend of Rs 6.5tn over the period, it expects capex to sustain at higher levels well beyond FY20F. Just as important, it believes a paradigm shift is under way in the functioning of the railways, boding well for India’s economic growth
