Interim Budget 2024: Highlights for Railways, Metro and Infrastructure Sectors

New Delhi, India (Metro Rail Today): In a strategic move to propel economic growth and usher in transformative changes, India's Interim Budget, presented by Union Finance Minister Nirmala Sitharaman, unfolds a comprehensive roadmap for the nation's infrastructure development. This budget not only strengthens the existing economic framework but also outlines transformative sectors poised to shape India's future. Noteworthy allocations of Rs 2.55 Lakh Crore for the Ministry of Railway signal unprecedented growth in infrastructure over the next five years.

The budget places a significant focus on reinventing the railway sector, the backbone of the nation's transportation system. The introduction of three critical corridors—Energy, Mineral & Cement Corridor; Port Connectivity Corridor; and High Traffic Density Corridor—is aimed at streamlining resource transport, reducing manufacturing costs, facilitating exports, and enhancing efficiency in high-traffic zones. This initiative seamlessly aligns with the PM Gati Shakti initiative, positioning infrastructure as a key driver for economic growth.

A transformative stride is announced with the conversion of 40,000 normal rail bogies to Vande Bharat standards, reinforcing the rail sector's commitment to technological advancement. The substantial capital expenditure announcement of 11.1 lakh crore echoes the overarching theme of enabling infrastructure, especially in the era of Amrit Kaal.

"While keeping the fiscal deficit under control in this Budget, a historic high of Rs. 11 lakh 11 thousand 111 crore has been allocated for capital expenditure. In the language of economists, this is somewhat of a sweet spot. This will not only lead to the construction of 21st-century modern infrastructure in Bharat, but also create countless new opportunities for employment for the youth. In the Budget, it has been announced to manufacture 40,000 modern coaches under the ‘Vande Bharat Standard’ and induct them in regular passenger trains. This will enhance the experience of comfortable travel for millions of passengers on different railway routes across the country," said Narendra Modi, Prime Minister of India.

"The Prime Minister’s focus on railways is very clear. It is helping bring more capacity, it is helping…once the three corridors are completed, we will have enough capacity that the waiting list jhamela (complication) will be over. So that is the kind of capacity which is getting created. The upgradation of the 40,000 trains would be done at a cost of Rs 15,200 crore, over the next five years. This will really bring a big transformation in our country’s economy, make it more efficient, make it more productive and reduce pollution to make it more sustainable," said Ashwini Vaishnav, Union Railway Minister, Govt. of India.

Commenting on this, Olivier Loison, Managing Director of Alstom India, states, "The Union Budget promises to drive development and innovation, taking India’s infrastructure to the next level. The continued focus on infrastructure, with an increased outlay of INR 11.11 lakh crores in FY25, will play a key role in boosting India’s economic growth."

"Prioritizing people, the focus on railway corridors and PM GatiShakti projects is a significant stride towards a developed India by 2047. Converting 40,000 rail coaches to Vande Bharat standards ensures comfort, convenience, and safety. 'Naya Viksit Bharat' travel sets a new paradigm, aligning with the vision of a reliable and updated transportation network," said Umesh Chowdhary, Vice Chairman & Managing Director, Titagarh Rail Systems Limited.

The Interim Budget positions digital infrastructure and technology as pivotal factors of production, extending beyond traditional elements. A strong focus on fortifying the financial sector, including support for GIFT City to attract foreign investments, sets the stage for economic resilience. The India Middle East Europe Economic Corridor emerges as a growth catalyst, promising opportunities for Indian infrastructure and engineering companies, closely tied to the Railway-Port Connectivity Corridor initiative.

The budget showcases a commitment to improving the railway sector through the Metro and Namo Bharat programs. These initiatives signify dedication to enhancing railway infrastructure, fostering urbanization centers, and improving regional connectivity. The forward-looking approach encapsulated in the budget positions India for sustainable growth and technological evolution.

Mrs. Mamta Shah, MD & CEO of Urban Infra Group, commends the visionary approach showcased in India's Interim Budget 2024. The substantial allocations for the Ministry of Road Transport & Highways and the Ministry of Railway resonate with Urban Infra Group's commitment to contributing to India's urban development. The emphasis on transformative sectors, particularly the reinvention of the railway sector and the focus on digital and green transformation, aligns seamlessly with our mission at Urban Infra Group. This budget lays a robust foundation for sustainable growth, technological innovation, and the evolution of India's urban infrastructure. We are eager to participate in and support the initiatives that will drive the nation toward a progressive and resilient future.

India's Interim Budget serves as a comprehensive strategy to propel the nation into a new era of growth and development. The focus on transformative sectors, coupled with a commitment to technological advancements and sustainability, outlines a strategic leap forward. As the nation charts its course for the future, this budget lays the foundation for a resilient and progressive India.