Railways, highways continue to be primary drivers, take 47% of capex, Pg6

Key Highlights:

• In FY27, Road Transport and Highways are allocated Rs 2.94 lakh crore and Railways Rs 2.78 lakh crore, totaling 47% of India's capital expenditure.
• Seven new high-speed rail corridors and one East-West dedicated freight corridor were announced to boost the Bullet train project.
• As of October 2025, the Mumbai-Ahmedabad bullet train project achieved over 55% physical progress.
• India's National Highway length increased by 61% from 91,287 km in 2014 to 1.46 lakh km currently.
• National High-Speed Corridors expanded from 93 km in 2014 to 3052 km at present.

Detailed Insights:

• The increase in capex began after the government increased the budget, rising by 92% between FY19 and FY22, from Rs 3.07 lakh crore to Rs 5.92 lakh crore.
• The FY26 capex outlay increased to Rs 11.21 lakh crore, with Road Transport and Highways and Railways accounting for Rs 5.24 lakh crore, later revised to Rs 10.96 lakh crore.
• A scheme to enhance Construction and Infrastructure Equipment (CIE) is proposed to strengthen domestic manufacturing of technologically advanced construction equipment.
• The Economic Survey for 2025-26 states that every rupee spent on infrastructure increases GDP by Rs 2.5 to Rs 3.5.
• As of March 2025, the rail network expanded to 69,439 route km, with a target to extend it by 3,500 km during FY26.
• The average commissioning of the railway network per year has more than doubled from 1,499 km during 2004-14 to 3,118 km during 2014-24.

Key Concepts Involved:

• Capital Expenditure (Capex): Funds used by a company to acquire or upgrade physical assets such as property, buildings, or equipment.
• Dedicated Freight Corridor: A railway line exclusively used for freight transport, separate from passenger lines, to improve efficiency.
• Gross Domestic Product (GDP): The total monetary or market value of all the finished goods and services produced within a country’s borders in a specific time period.