Sat Feb 01 23:48:26 IST 2025: ## Indian Railways Receives No Major Budget Boost in FY2026
**New Delhi, [Date of Publication]** – Finance Minister Nirmala Sitharaman presented the Union Budget 2025-26 today, allocating ₹2.55 lakh crore to the Indian Railways. This figure remains unchanged from the previous fiscal year’s allocation, disappointing many who had hoped for significant new initiatives.
While last year’s budget included announcements of new Vande Bharat trains and three major railway economic corridors, this year’s budget speech lacked similar large-scale announcements for the railways. The only mention of the sector was a relaxation of norms for the railway’s maintenance, repair, and overhaul (MRO) industry, mirroring similar benefits already extended to the aviation and shipping sectors. This measure aims to boost India’s MRO hub and transportation sector growth.
The unchanged allocation has led to a sharp dip (up to 6%) in the share prices of several state-owned and private railway-related companies, including IRFC Ltd, RVNL Ltd, IRCON International Ltd, RailTel Ltd, and IRCTC Ltd. The lack of significant new funding for the railways contrasts with allocations to other sectors, such as defense, which received a 9.5% increase.
The budget’s overall impact on the railways remains a point of discussion, with some criticizing the lack of ambitious projects and others focusing on the positive implications of the MRO industry relaxation. The government’s silence on major railway infrastructure developments has sparked debate about the future direction of the sector.
First Piper 