India's road transport and railway ministries have registered unprecedented capital expenditure (capex) in the April to September period of FY26, spending over ₹3.1 lakh crore. This accounts for more than 50% of the Centre’s total capex target of ₹11.2 lakh crore for the fiscal year.
The Ministry of Road Transport logged a record ₹1.7 lakh crore spend in H1 FY26, out of a total budgeted ₹2.7 lakh crore, achieving a utilisation rate of 63%. This marks the highest ever H1 capex utilisation in the ministry’s history, reflecting its intensified focus on infrastructure development. Compared to the same period last year, spending has grown significantly from ₹1.4 lakh crore.
The Ministry of Railways followed closely, recording ₹1.4 lakh crore in expenditures out of the allocated ₹2.5 lakh crore, reflecting a 56.5% utilisation rate. These figures underscore the vital role of both ministries in driving economic momentum through infrastructure investments.
The railway ministry’s outlay prioritised infrastructure augmentation and safety. Around ₹22,286 crore was exclusively invested in safety upgrades, including automatic train protection (KAVACH), bridge enhancements, track renewals, and road overbridges. The majority of the remaining budget supported projects focused on new lines, doubling, electrification and metro rail expansions.
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The road and rail ministries’ historic capital utilisation of ₹3.1 lakh crore in H1 FY26 highlights the government's aggressive infrastructure strategy. With over 60% of their combined annual budget already utilised by September, future allocations may further increase to support this momentum.
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Published on: Oct 10, 2025, 2:46 PM IST
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