Indian Railways (IR) is undergoing a major transformation, driven by a significant investment of Rs 2.65 trillion under Union Budget 2025-26. With allocations of Rs 750 billion for track infrastructure, Rs 455 billion for rolling stock and Rs 68 billion for signalling and telecommunications, IR is spearheading a shift towards faster and more sustainable passenger and freight movement.
Track expansion and upgrade
To support semi-high-speed trains such as Vande Bharat and Amrit Bharat, IR is upgrading tracks with high-quality rails, longer panels and thick web switches. In 2024-25, IR targeted the replacement 7,000 km of old tracks. By February 2025, 90 per cent of the target had been achieved, with 7,900 km planned for 2025-26. As of July 2025, 78 per cent of IR’s network supports sectional speeds exceeding 110 kmph.
The total track length has expanded from 79,342 track km (tkm) in 2014 to 105,672 tkm in 2025, a growth of more than 33 per cent. Notably, tracks supporting speeds of 110-130 kmph have expanded significantly from 26,409 tkm in 2014 to 59,800 tkm in 2025. Meanwhile, track sections supporting 130 kmph and above speeds have surged from 5,036 tkm to 23,010 tkm, a fivefold increase, whereas those supporting speeds below 110 kmph have significantly reduced from 47,897 tkm to 22,862 tkm, highlighting a focused effort on modernisation.
The pace of track laying has accelerated with the use of mechanised equipment, enhancing both efficiency and precision. Between 2014 and December 2024, IR commissioned 34,613 km of track length, an average of 3,461 km per year. This is 131 per cent higher than the 2004-14 average. In 2023-24, track laying peaked at 14.54 km per day but dipped to 12.48 km per day in 2024-25 due to election-related constraints.
Between 2014 and 2025, IR has focused on multitracking projects (doubling, tripling, etc.) and gauge conversion projects, which accounted for approximately 72 per cent of the total capacity additions during this period. However, since these segments do not contribute to route length expansion, IR’s net rail line coverage has grown at a slower pace, despite the increase in tkm. From 2020 to 2025, the primary emphasis of track construction was on doubling existing lines. However, in 2023-24, the construction of new lines exceeded track doubling. In 2025-26 (as of August 2025), the Cabinet Committee on Economic Affairs has approved various multitracking projects worth over Rs 450 billion. Notable approvals include the Lumding-Tinsukia Junction-Dibrugarh project in Assam, Kharsia-Parmalkasa in Chhattisgarh and Gondia-Balharshah in Maharashtra.
Progress under mega programmes
While initiatives such as dedicated freight corridors (DFCs) have been instrumental in driving freight growth, key projects and programmes such as the Mumbai-Ahmedabad high-speed rail (MAHSR) project and the Amrit Bharat Station Scheme are significantly enhancing passenger infrastructure. Construction on the remaining section of the western DFC is expected to be completed by December 2025. In July 2025, Dedicated Freight Corridor Corporation of India Limited (DFCCIL) reported a 13 per cent year-on-year growth, with 66.4 billion gross tonne-km. The western DFC alone operated 5,607 trains, a 22 per cent increase over the previous year.
The MAHSR project has also made significant progress, with a cumulative expenditure of Rs 788 billion as of June 2025. The project has completed 304 km of viaducts, 388 km of pier work and 14 river bridges, among other major infrastructure. Japan’s E3 series Shinkansen, designed for 320 kmph, is expected in India by early 2026 for trial runs. In addition, 103 Amrit Bharat stations, built at an investment of Rs 11 billion, were inaugurated in June 2025.
Modernisation, indigenisation and expansion of rolling stock production
IR is enhancing operational efficiency by ramping up the production of rolling stock. In 2024-25, it produced 7,134 coaches, a 9 per cent increase from 6,541 in the previous year. This includes 5,439 Linke-Hofmann-Busch coaches, which also recorded marking a 9 per cent year-on-year growth. Freight rolling stock production also saw strong momentum, with 41,929 wagons manufactured in 2024-25, an 11 per cent increase from 37,650 in 2023-24. Locomotive production reached a record high of 1,681 units, a 19 per cent year-on-year rise, surpassing the annual output of countries like the US, Europe and Australia.
IR has also accelerated the roll-out of advanced passenger trains such as the Vande Bharat Express and Amrit Bharat, offering higher speeds and improved passenger comfort. As of August 2025, 150 Vande Bharat and seven Amrit Bharat trains are operational. Meanwhile, the first Vande Bharat sleeper train is scheduled to be launched in September 2025. The Integral Coach Factory (ICF) has been tasked with manufacturing 60 sleeper rakes, with contracts for 200 more awarded to technology partners. Aligned with the Make in India initiative, around 85 per cent of components used in the Vande Bharat trains are sourced domestically.
IR is also promoting green innovation. In July 2025, it successfully tested India’s first hydrogen-powered coach at the ICF and is finalising a 1,200 horsepower hydrogen train. It also conducted trial runs for the 4.5 km long Rudrastra, India’s longest freight train, showcasing efforts to modernise and decarbonise freight transport.
Adopting futuristic technologies
There is a strong focus on technology adoption in the sector, driven by advancements in safety and passenger convenience:
Expanding the safety net
IR has made steady progress in implementing Kavach, its indigenous automatic train protection system. Key milestones include the installation of 619 telecom towers, laying of 5,856 km of optical fibre, deployment of trackside equipment over 4,001 route km (rkm), and integration of Kavach in 1,107 locomotives and 708 stations. In August 2025, the South East Central Railway and East Coast Railway zones installed Kavach on their first locomotives. IR plans to extend Kavach to an additional 3,100 rkm in the South Central Railway zone, covering 70 per cent of its network. Meanwhile, North Central Railway successfully completed Kavach trials on the Mathura-Palwal section.
Simultaneously, IR is advancing signalling technology. In July 2025, the direct drive electronic interlocking (DDEI) system was piloted at Tajpur and Dinanagar stations, replacing mechanical linkages with electronic controls via optical fibre, reducing copper cable usage by up to 70 per cent and significantly cutting maintenance costs. Notably, DDEI also brings down the train crossing time from 10-15 minutes to just 15-20 seconds and is fully compatible with future safety systems such as Kavach.
In June 2025, Southern Railway became the first zone to fully implement automatic block signalling on the Golden Quadrilateral-Golden Diagonal routes. IR also signed an MoU with DFCCIL to deploy artificial intelligence (AI)/machine learning (ML)-powered machine vision inspection systems, which capture high-resolution images of undergear in moving trains to detect anomalies in real time. It has also announced its plan to roll out the integrated track monitoring system (ITMS) across all zones, with an investment of Rs 1.8 billion. ITMS features contactless monitoring through laser sensors, high-speed cameras, light detecting and ranging technology, among others.
Enhancing passenger convenience
IR is implementing AI- and ML-based technologies to enhance both operational efficiency and passenger convenience. In July 2025, it announced plans to install AI-based facial recognition systems at seven major stations to strengthen surveillance. The automation of the complaint section in the interactive voice system has streamlined grievance redressal, leading to quicker responses.
The RailOne app, launched by the Centre for Railway Information Systems (CRIS) in July 2025, serves as a platform for integrated services such as live train tracking, unreserved ticketing with wallet discounts, e-catering and porter and taxi booking. CRIS is also developing a modernised passenger reservation system, slated for launch by December 2025. The system will be capable of handling 150,000 bookings and 400,000 enquiries per minute.
In addition, IR plans to overhaul its train control systems by employing real-time monitoring, AI-assisted traffic management and predictive analytics, all coordinated through a centralised command centre. This indigenous system will be modelled on best practices from Japan, Germany and France, but tailored to India’s requirements.
Driving non-fare revenues
While IR continues to strengthen its core revenue streams from passenger and freight services, it is actively exploring new avenues to improve overall revenues and financial sustainability. In 2024-25, IR generated approximately Rs 7 billion from non-fare sources such as e-advertising, e-auctions and the New Innovative Non-Fare Revenue Ideas Scheme, up from Rs 6 billion in the previous year. Despite this growth, non-fare revenue constitutes around 3 per cent of IR’s total income, significantly lower than the approximately 30 per cent seen in countries such as Germany and Japan.
In 2024-25, IR earned around Rs 31 billion from the commercial use of railway land and spaces – a 16 per cent year-on-year increase and an 8 per cent CAGR since 2019-20. However, only about 1 per cent (4,930 hectares) of total railway land is monetised commercially, with 1,078 hectares remaining encroached. In August 2025, IR amended its land monetisation policy to allow the establishment of sorting, grading, packaging and labelling units on vacant land, aiming to improve e-commerce cargo transport. To unlock further potential, NITI Aayog has invited expressions of interest for a study on asset and service monetisation, public-private partnerships, and sustainability-linked revenue streams such as solar projects and recycling.
The way forward
IR is on the path to becoming a more modern, efficient and financially resilient organisation. Backed by strong government support, it is scaling up infrastructure, adopting advanced technologies and exploring non-fare revenue opportunities. These efforts are not only improving operational performance but also laying the groundwork for a smarter, safer and more customer-focused railway network.
Prateek Chaturvedi
