With the Union Budget 2026-27 approaching, the rail sector is entering a phase where execution and reform will matter as much as headline allocations. The Railways Minister’s ‘52 Reforms in 52 Weeks’ programme signals a clear push toward system-wide improvements in operations, safety, and service delivery.

Based on recent trends, the rail outlay is expected to see a calibrated increase of around five percent, taking the overall allocation to approximately ₹2.65 lakh crore, including extra-budgetary resources. With electrification nearing completion, capital deployment is likely to be redirected toward easing congestion through new lines, gauge conversion, track doubling, and the expansion of Dedicated Freight Corridors and economic corridors linked to ports and mineral clusters.

The reform agenda’s focus on faster adoption of artificial intelligence and advanced technologies for safety, predictive maintenance, and train operations is particularly encouraging, as it reflects a shift from asset creation alone to measurable performance outcomes.

From an industry standpoint, continued capital support, regulatory simplification, deeper private sector involvement, and a more enabling framework for public-private partnerships will determine how effectively policy intent translates into on-ground execution. The forthcoming Budget should therefore focus on converting reform intent into projects that directly reduce congestion and lift operating efficiency across the rail network.

Vivek Lohia, Managing Director, Jupiter Wagons Limited