As Finance Minister Nirmala Sitharaman prepares to present the Railway Budget as part of Union Budget 2026-27, the Indian Railways stands at a crucial juncture, balancing ambitious modernization plans with fiscal realities. Expectations are high that the budget will continue to prioritize safety, infrastructure upgrades, and the introduction of new train services, while also focusing on efficient project execution and attracting greater private sector participation.

2025: A Year of Progress and Challenges

2025 was a year of significant achievements for Indian Railways. The Ministry of Railways launched 42 projects valued at over ₹25,000 crore, focusing on innovation, domestic production, track upgrades, electrification, and station modernization. Landmark projects included the completion of rail connectivity to the Kashmir Valley and Aizawl in Mizoram, marking the integration of previously remote regions. The commissioning of India's first vertical-lift rail bridge in Pamban, Tamil Nadu, and the world's highest rail bridge over the Chenab River, were also key milestones.

In FY 2025–26, Indian Railways achieved a historic milestone of 1 billion tonnes of freight loading, with daily loading touching 4.4 million tonnes. This was supported by policy interventions and capacity augmentation, including a simplified flat-rate tariff for bulk cement transportation and the commissioning of 25 Gati Shakti Cargo Terminals.

However, 2025 also presented challenges. A stampede at New Delhi Railway Station highlighted crowd management issues, prompting the implementation of holding areas on high-passenger platforms. Safety remains a paramount concern, with continued emphasis on advanced train protection systems and infrastructure maintenance.

TAG 2026: Enhancing Connectivity and Speed

Indian Railways has launched the "Timetable of Trains (TAG) 2026," unveiling a series of network upgrades designed to improve connectivity and travel efficiency. TAG 2026 includes the introduction of 122 new train services and the speeding up of 549 existing services. The new trains encompass a diverse range of categories, including 60 Mail/Express trains, 28 Vande Bharat trains, 26 Amrit Bharat trains, as well as Rajdhani, Jan Shatabdi, Humsafar, and Namo Bharat Rapid Rail services. In addition to new trains, TAG 2026 includes the extension of 86 trains, increased frequency of eight services, and the conversion of 10 trains to superfast categories.

Budget 2026: Expectations and Priorities

As Indian Railways approaches Budget 2026, several key expectations and priorities have emerged:

• Continued Capital Expenditure: A moderate increase in railway capital expenditure is expected, reflecting the government's commitment to infrastructure development. In Budget 2025-26, the capital expenditure target for Indian Railways was ₹2.52 lakh crore.
• Safety Enhancements: Following recent accidents, increased funding for advanced train protection systems, mechanised maintenance, and AI-driven monitoring is anticipated.
• Vande Bharat Expansion: Further expansion of the Vande Bharat network, including sleeper versions, is likely to be prioritized. Indian Railways plans to introduce 200 Vande Bharat trains to expand the semi-high-speed network.
• Private Sector Participation: Greater emphasis on attracting private investment in areas such as freight corridors, passenger and freight terminals, and logistics infrastructure is expected.
• Capacity Augmentation: Increased allocation for upgrading tracks and signaling systems to match the semi-high-speed potential of Vande Bharat trains, as well as decongesting high-density routes, is anticipated.

The sustained capital expenditure over the last decade has already yielded visible upgrades, including near-total network electrification and the rollout of the Kavach safety system. Priorities for 2026 include reducing consequential accidents to single digits, improving food and onboard services, implementing reforms, and increasing the use of AI and advanced technologies. The Indian Railways aims to build 1,000 Road Over Bridges (RoBs) and Road Under Bridges (RuBs) in the coming years.