Railway Budget 2025 Highlights: Railways allocation remains unchanged at Rs 2.65 lakh crore for the second year in a row

All eyes are on rail stocks as investors expect higher allocations in this year’s budget. Key stocks in focus include Rail Vikas Nigam Ltd (RVNL), Indian Railway Finance Corporation Ltd (IRFC), RITES Ltd, IRCTC, Railtel Corporation of India Ltd, among others.

Union Finance Minister Nirmala Sitharaman stated that India’s economy is the fastest growing among all major economies. She highlighted the country’s development track record over the past 10 years and the structural reforms that have garnered global attention. Sitharaman emphasized that confidence in India’s potential has only increased during this period, and she views the next five years as a unique opportunity to achieve inclusive growth and development across all regions.

Chaos erupted in Parliament as the Opposition protested when Nirmala Sitharaman began her budget presentation.

The Finance Minister is delivering her record eighth consecutive budget, making her the only finance minister to present the Union Budget for eight consecutive years. This also marks the first full budget of Modi Government 3.0.

Finance Minister Nirmala Sitharaman is expected to announce new trains on additional routes, including the Katra-Banihal section, as part of expanding India’s railway network. Expanding the railway infrastructure has been a key priority for the NDA government under Prime Minister Modi’s leadership.

The Union Budget 2025-26 speech will commence at 11:00 AM today, with the Railway Budget announcements following shortly after.

This year’s Railway Budget will primarily focus on modernizing Indian Railways, developing dedicated freight corridors, upgrading rolling stock, enhancing safety measures, and building robust infrastructure. These initiatives aim to establish a world-class railway system that can support the growing demands of India’s economy.

Railway stocks saw a significant rise during the special trading session ahead of the Union Budget for 2025-26. Stocks like IRFC, RVNL, IRCTC, RailTel, Titagarh, and others surged by over 6% on February 1. As of 10:30 AM, Titagarh Rail Systems was trading near its intra-day high of Rs 1,100, while RVNL and RITES saw gains of over 3%. READ MORE

The Railway Budget is expected to prioritize the modernisation of stations across the country, focusing on renovations, improved amenities, and the integration of advanced facilities. This includes expanding Wi-Fi connectivity, installing digital displays, and creating passenger lounges. The goal is to provide a world-class travel experience, boost tourism, and support local economies.

Indian Railways is implementing several initiatives to improve passenger experience and station amenities, focusing on station redevelopment, affordable healthcare, better catering services, and support for local artisans.

The Union Cabinet, chaired by Prime Minister Narendra Modi, approved the full budget for 2025-26 on Saturday. Following this, Finance Minister Nirmala Sitharaman will present her eighth consecutive budget in the Lok Sabha.

Ahead of the Union Budget 2025 presentation, the Union Cabinet meeting has commenced in Parliament.

As India moves towards its net-zero carbon emission goals, the Railway Budget is expected to introduce sustainable initiatives in rail operations, including investments in eco-friendly technologies. With a focus on energy-efficient trains, this may include announcements related to hydrogen-powered trains, contributing to greener and more sustainable transportation.

The Mumbai-Ahmedabad High-Speed Rail Project has a revised budget of Rs 1.08 lakh crore. As of October 2024, the project is 47.17% physically complete, with Rs 67,486 crore spent so far.

Amrit Bharat Station Scheme: This initiative aims to upgrade railway station amenities. A total of 1,337 stations have been identified for redevelopment, with work already underway at 1,197 stations.

Pradhan Mantri Bhartiya Janaushadhi Kendras (PMBJKs): To enhance the wellness of passengers, 50 PMBJKs have been set up at railway stations. Additionally, 18 new PMBJKs were inaugurated on November 13, 2024, offering affordable medications and healthcare services.

Food and Catering Services: A new mobile catering policy was introduced on November 14, 2023. By November 23, 2024, 557 Base Kitchens have been established, servicing 468 pairs of trains.

One Station One Product Scheme: This scheme operates at 1,900 stations, with 2,163 outlets providing local artisans a platform to sell their products, benefiting 79,380 artisans.

Passenger Amenities: Improvements include the installation of Train Indication Boards at 1,351 stations, Coach Guidance Systems at 866 stations, and Wi-Fi at 6,112 stations.

The Railway Budget is expected to introduce measures aimed at enhancing passenger comfort and safety. Key initiatives could include upgrading onboard amenities, improving cleanliness standards, and enhancing passenger facilities. This would involve updates to coach designs, better sanitation facilities, and improved passenger information systems to ensure a safer and more enjoyable travel experience.

Union Minister Pralhad Joshi says, “Ever since economy of this country started being taken care of under the leadership of PM Narendra Modi, we have given pro-people, pro-poor, pro-middle class budget. It will be the same this time.”

Union Minister Gajendra Singh Shekhawat says, “The Budget will be in continuity and will be for the welfare of the country, of the poor and will be a novel and strong step towards the resolve of making ‘Viksit Bharat’…”

President Droupadi Murmu offers Union Finance Minister Nirmala Sitharaman the traditional ‘dahi-cheeni’ (curd and sugar) before her Budget presentation. Union Finance Minister Nirmala Sitharaman is set to present her 8th consecutive Union Budget today in Parliament.

Union Finance Minister Nirmala Sitharaman arrives at Parliament after meeting President Droupadi Murmu at Rashtrapati Bhavan. She is set to present the Union Budget in the House shortly.

Given the rise in train accidents, today’s budget is expected to allocate additional funds for safety-enhancing technologies in Indian Railways. With this in mind, Finance Minister Nirmala Sitharaman may also increase the budget for the KAVACH safety system.

To address these challenges, the government is focusing on enhancing rail infrastructure with the aim of reducing logistics costs and improving freight transport efficiency. Initiatives include the development of dedicated freight corridors, expanding connectivity to ports, and modernising railway infrastructure.

The expected increase in railways’ budget allocation signals a concerted effort to rejuvenate the sector and reduce its reliance on road transport, thus fostering a more sustainable and cost-effective logistics ecosystem. With continued investment in infrastructure and modernisation, Indian Railways is poised to play a key role in transforming the country’s transportation landscape in the years ahead.

A recent report by Nuvama indicates that Indian Railways is set to receive a larger share of funding in the upcoming budget, narrowing the gap with the highways sector. In FY24, the highways sector received Rs 2.70 lakh crore, but the upcoming budget is expected to reflect a shift in the government’s infrastructure priorities towards railways.

In FY25, Indian Railways was allocated a record-high budget of Rs 2.5 lakh crore, up from Rs 2.4 lakh crore in FY24. This marked a significant increase from the Rs 28,000 crore allocated in FY13-14. Meanwhile, the highways sector received Rs 2.78 lakh crore for the same year. This growing emphasis on railways highlights the environmental and logistical advantages of rail transport over roadways. A single freight train can replace hundreds of trucks, cutting greenhouse gas emissions by up to 75%.

FM Sitharaman leaves from Rashtrapati Bhavan after meeting President Droupadi Murmu.

The railway stocks are smartly up ahead of Budget 2025. The share prices of IRFC, RVNL, Titagarh Rail Systems, RITES, RailTel, BEML, and many others rose as much as 6.7%. Except for Container Corporation of India all other major rail stocks were trading in the green.

Union Finance Minister Nirmala Sitharaman and MoS Finance Pankaj Chaudhary arrive at Rashtrapati Bhavan to meet President Droupadi Murmu before tabling the Union Budget 2025.

Copies of the Union Budget 2025 have been brought to Parliament as Union Finance Minister Nirmala Sitharaman prepares to present her eighth Union Budget today for the fiscal year 2025-26 in the Lok Sabha.

Union Finance Minister Nirmala Sitharaman will present and read out the Budget through a tab, instead of the traditional ‘bahi khata’.

The Finance Minister is all set to present Union Budget 2025 in the Parliament soon. Stay tuned!

The Railway Ministry has launched the SwaRail app, a SuperApp designed to provide a one-stop solution for a range of public services, now available for testing on the Google Play Store, an official confirmed on Friday (January 31).