As India moves closer to the "Viksit Bharat 2047" vision, the Rail Chamber anticipates a strategic shift in budgetary priorities—transitioning from pure network expansion toward a more sophisticated, safety-first, and technology-driven infrastructure. The industry expects a capital expenditure (capex) of approximately ₹2.75–₹2.8 lakh crore, representing a steady 10–12% increase focused on high-multiplier outcomes.
Strategic Recommendations for Budget 2026-27
Accelerated "Kavach" Implementation: The Chamber advocates for a 25% increase in funding specifically for the Kavach (Automatic Train Protection) system. To speed up the rollout across the 78,000 km broad-gauge network, the Chamber recommends "Vendor Diversification Grants" to support new OEMs entering the ecosystem.
Next-Gen Rolling Stock: With the successful launch of Vande Bharat Sleeper trains in early 2026, the Chamber seeks predictable procurement guarantees to help manufacturers scale production toward the national goal of 800 trainsets by 2030.
MSME Integration & Fiscal Support: A core recommendation includes the mandatory integration of Railway Production Units with the TReDS platform to ensure 45-day payment cycles for MSMEs. The Chamber also urged the rationalization of GST on train parts to correct the existing inverted duty structure.
Metro & High-Speed Rail (HSR): Expectations include dedicated allocations for Namo Bharat (Rapid Rail) expansions and the acceleration of the Mumbai-Ahmedabad High-Speed Rail corridor, alongside a "National Infrastructure Pipeline 2.0" to provide long-term visibility to private investors.
Asset Monetization & PPPs: The Chamber encourages the government to leverage InvITs (Infrastructure Investment Trusts) and Toll-Operate-Transfer (TOT) models for station redevelopment and terminal management to unlock capital for fresh projects.
Quote from the Director General
"The Union Budget 2026-27 must act as both a stabilizer and a growth enabler for the Indian railway industry. We are not just building tracks; we are building the industrial backbone of a global power. By focusing on safety systems like Kavach and supporting our domestic MSME base, the government can significantly reduce input costs and improve the operating ratio, ensuring that 'Make in India' remains the engine of our rail revolution."
— Dr. Vinod Shah, Director General, Chamber of Railway Industries
About the Chamber of Railway Industries
The Chamber of Railway Industries (Rail Chamber) is a unified, data-driven voice for manufacturers, innovators, and service providers in the railway and metro sectors. It is committed to fostering transparency, self-reliance, and global competitiveness within India's rail ecosystem.
