The Budget for 2024-25 presented in Parliament by the Hon’ble Finance Minister Nirmala Sitharaman has kept the momentum of infrastructure investment and has announced measures to take it to the next level. The Budget aims to boost safety systems in railways along with modernization and upgradation of existing infrastructure. The continued thrust on infrastructure will prove to be a catalyst for the manufacturing sector. 

India stands on the cusp of a significant economic transformation, on the cusp of a Viksit Bharat. The Budget announcement of a monumental capital expenditure allocation of ₹11.11-lakh crore, accounting for 3.4 per cent of the GDP, marks a pivotal moment in our journey towards becoming a global economic powerhouse. 

The Budget has allocated ₹2.52-lakh crore to Indian Railways and significantly ₹1.08-lakh crore has to be utilised for implementation of safety related activities which includes Kavach, improvement on signaling systems, construction of flyovers and underpasses, along with replacement of old tracks. Kavach 4.0 is the Indian railways’ flagship , sophisticated, safety system, which will be installed on rapid pace. The Budget allocation will also be utilised for newer projects like Vande Bharat, Vande Metro and Amrit Bharat.

The economic survey released on Monday highlighted the progress we have made in urban transportation. With 945 km of metro rail or Regional Rapid Transit System (RRTS) lines operational and an additional 939 km under construction across 27 cities, India’s urban landscape is being reshaped to meet the demands of a growing, flourishing population. The operationalisation of approximately 86 km of metro rail/RRTS lines in FY24 alone is a testament to our unwavering commitment as a nation to improving urban mobility. 

Private investment

One of the key highlights of this economic blueprint is the emphasis on bolstering private sector investment through viability gap funding and the introduction of enabling policies and regulations. The government’s commitment to creating a market-based financing framework is a commendable step towards ensuring that the private sector plays a crucial role in this developmental saga.

This, coupled with the very distinct and clear focus on our country’s youth shows a clear path towards our Hon’ble Prime Ministers, and our country’s vision of an ‘Amrit Kaal’.  

Equally noteworthy is the substantial increase in capital expenditure on Railways, which has surged by 77 per cent over the past five years. This significant investment has been directed towards the construction of new lines, gauge conversion and improving infrastructure. Such initiatives are not just about expanding the physical infrastructure but also about enhancing the efficiency and reliability of our rail network.

With the BJP-led NDA government presenting its first Budget in its third term, the Budget has continued its trajectory of making integral investments towards infrastructure development, particularly overhauling of the Indian railways. The government’s vision, as articulated through these strategic investments, is a clear call for industries across the board to rise to the occasion. For the rail industry, this is an unparalleled opportunity to align with this visionary call, contribute to economic growth, help in shaping our nations future and play a significant role in shaping India’s infrastructure landscape.

The substantial capex allocation and the progressive policies aimed at fostering private sector involvement herald a new era of economic development. At Titagarh Rail Systems, we believe that as India grows, we are a small yet significant part of that growth. Our commitment to innovation, quality and collaboration ensures that we contribute effectively to the nation’s infrastructure development. Together, we can drive India’s growth story towards a ‘Viksit’ Bharat,  ensuring that our infrastructure meets the demands of the future.

 The author is Dy. Managing Director, Titagarh Rail Systems Limited