Railway Budget 2026: From Vande Bharat to Kavach - what a decade of railway capex push has delivered

Ahead of Budget 2026, a decade of sustained capital expenditure by Indian Railways is offering a clear snapshot of what long-term investment in the sector has delivered — from modern Vande Bharat and Amrit Bharat trains to near-total network electrification and the rollout of Kavach safety systems.

With budgetary allocations expected to remain range-bound in 2026–27, recent data highlights how consistent capex over the last ten years has translated into visible upgrades across safety, new trains and core railway infrastructure.

While future budget allocations may remain range-bound, the data shows that sustained capex has already delivered some changes across the rail ecosystem.




Modern passenger trains take centre stage

According to an ET analysis on Indian Railways data, capital expenditure over the last ten years has led to the introduction of 164 Vande Bharat trains and 30 Amrit Bharat train services, signalling a push towards modern, faster, and more passenger-friendly rail travel.

In the last few years, Indian Railways has introduced several new passenger trains - Vande Bharat, Vande Bharat sleeper, Tejas Express, Amrit Bharat Express, Namo Bharat trains, Vistadome coaches, Antyodaya Express. These additions reflect a shift in focus from incremental upgrades to a more transformation-driven approach in passenger services.

Looking ahead, priorities for 2026 will likely include reducing consequential accidents to single digits, improving food and onboard services, implementing 52 reforms in 52 weeks, and increasing the use of AI and advanced technologies.

Safety upgrades gain momentum

Safety has emerged as a major outcome of this spending cycle. The implementation of Kavach, the automatic train protection system, stands out as a key achievement aimed at reducing accidents and enhancing operational safety. However, the rollout is still in initial stages and requires concerted effort to cover a major portion of the Indian Railways network.

This aligns with the broader spending pattern, where safety has seen Rs 1,16,470 crore spent, or 84 per cent utilisation of allocated funds till December-end, amounting to over 80% of the total gross budgetary support of Rs 2.52 lakh crore.

Network electrification and core infrastructure strengthening

Network-level upgrades form another core outcome of the capex push.

Over 99 per cent of the broad-gauge network has now been electrified, marking a near-complete transition away from diesel traction.

Extensive works covering railway tracks have also been carried out, underscoring the emphasis on strengthening core infrastructure alongside service upgrades.

Capacity expansion and fleet augmentation

Capacity expansion has moved in parallel with safety and modernisation.

Capacity augmentation spending has reached Rs 1,09,238 crore, or 69 per cent utilisation, indicating steady progress in easing congestion and improving operational efficiency across the network.

The scale of investment is further reflected in rolling stock additions, with Indian Railways planning to add 4,838 coaches in 2025–26 and 4,802 coaches in 2026–27, pointing to continued emphasis on fleet expansion even as major network milestones are achieved.