Railway Budget 2025: Know What Train Travellers Expect Ahead Of February 1

India is eagerly awaiting the presentation of the Union Budget for FY 2025-26. Finance Minister Nirmala Sitharaman will present the Union Budget later this week on Saturday, February 1.

Ahead of the Union Budget for 2025, rail travellers are eagerly awaiting the presentation of the Budget. In 2024 a record capital expenditure of Rs 2,62,200 crore was allocated to railways. Additionally several railway focused initiatives such as the establishment of the Gati Shakti Directorate were also announced as a part of the Union Budget 2024. Additional funds were also infused for supporting industrial clusters at strategic locations such as Kopparthy on the Visakhapatnam-Chennai Industrial Corridor, Orvakal on the Hyderabad-Bengaluru Industrial Corridor in Andhra Pradesh, and Gaya on the Amritsar-Kolkata Industrial Corridor in Bihar. 

Here’s a look at some key expectations rail travellers are likely to have from the Union Budget 2025:

Manish Chowdhury the Head of Research at StoxBox said that he anticipates the allocation for railways to increase by 15-18 per cent in Union Budget 2025.

“We anticipate the government to boost the railway sector budget, with an anticipated 15-18 per cent increase in allocation for this segment. In the 2024-25 budget, Rs. 2,62,200 crores were allocated to the railway sector,” Chowdhury said.

Viral Bhatt the founder of Money Mantra, a company which provides personal finance-related consultancy services told Outlook Money that rail-travelers are expecting the announcement of measures aimed at digital transformation as a part of Union Budget 2025. He added that expanded internet connectivity and enhanced use of AI and data analytics for better route optimisation and customer service are among the expectations rail travelers have.

“Expanding internet connectivity on trains and at stations. Enhanced use of AI and data analytics for better route optimization, maintenance, and customer service are among some budget expectations rail travellers have,” Bhatt told Outlook Money.

Bhatt also added that he anticipates increased encouragement for the private sector players in railway.

“Further encouragement of Public-Private Partnerships (PPP) for train operations, catering, and station modernization and introduction of more private players in luxury or premium train services,” Bhatt said.

Chowdhury added that with an aim to increase passenger convenience, the government might also integrate AI into functions such as ticketing. He added that the introduction of new Vande Bharat and Amrit Bharat trains is also expected along with the expansion of the Amrit Bharat Yojana.

“The government is also integrating AI into operations like ticketing and monitoring track conditions to improve efficiency and safety. The introduction of new Vande Bharat and Amrit Bharat trains is expected, alongside an expansion of the Amrit Bharat Station Yojana, a scheme aimed at modernizing 1,275 railway stations with enhanced passenger amenities and contemporary designs,” Chowdhury said.