Union Budget 2026: 7 High-Speed Rail Corridors, New Freight Corridor Announced by FM

Finance Minister Nirmala Sitharaman on Sunday unveiled plans to develop seven high-speed rail corridors in the Union Budget 2026–27, aimed at strengthening environmentally sustainable passenger transport and boosting inter-city connectivity.

Presenting the Budget, Sitharaman said these corridors would act as growth connectors between major urban centres. The proposed routes include Mumbai–Pune, Pune–Hyderabad, Hyderabad–Bengaluru, Hyderabad–Chennai, Chennai–Bengaluru, Delhi–Varanasi, and Varanasi–Siliguri.

New Dedicated Freight Corridor Proposed

To promote eco-friendly cargo movement, the Finance Minister announced a new dedicated freight corridor linking Dankuni in West Bengal with Surat in Gujarat, improving east–west logistics efficiency across the country.

At present, construction is underway on the Ahmedabad–Mumbai high-speed rail corridor, while the Eastern and Western Dedicated Freight Corridors are already operational, covering multiple states and districts.

Railways Budget Allocation Remains Unchanged

In the Union Budget 2025, Indian Railways received an allocation of ₹2.65 lakh crore, unchanged from the previous fiscal year. Of this, ₹2.52 lakh crore was earmarked for capital expenditure, including investments through Public-Private Partnerships (PPP).

Cut in Allocation for Passenger Amenities

The allocation for passenger amenities declined to ₹12,118.39 crore from ₹15,510 crore in FY 2024–25. These funds are used to upgrade station infrastructure, including waiting halls, ticketing counters, toilets, drinking water facilities, seating, lighting, fans, and signage.

Expansion of Train Services Announced

The Budget proposed the introduction of 200 Vande Bharat trains in sleeper and chair car variants, along with 100 non-AC Amrit Bharat trains. Additionally, 50 NAMO Bharat trains were announced for short-distance city routes with operational speeds of up to 130 kmph.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.