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Time to realise capex benefits

February 02, 2026

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Business Standard

Budget 2026-27 reflects reassuring continuity in the Railways' performance.

- R SIVADASAN

Coal continues to support freight. Passenger business too is growing. By total ridership count, the Indian Railways (IR) is the world's largest Passenger Rail System. The current Lower Middle Income Group status of India has compelled IR to equilibrate its public service role with the difficult task of financial sustainability. Rail Passenger business, whether Amtrak of US, PRASA of South Africa or IR faces a low-margin market.India is set to join the Upper-Middle Income Group of Countries by 2030. Nearly 350 million Indian households, buying 7400 million Railway journeys in 2025, can sense a transition in IR, towards higher train speeds, improved passenger comforts and station upgrades.

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