Railway Budget Allocation 2025: State-wise Breakdown and Key Highlights

KKN Gurugram Desk | Indian Railways (IR) has received an unprecedented allocation of ₹2,65,200 crore for the Union Budget of 2025-26. This is the highest-ever outlay for the national transporter. Railway Minister Ashwini Vaishnaw announced the state-wise breakdown of this significant budget during a press conference on February 3, 2025, at Rail Bhavan in New Delhi.

This massive allocation underscores the government’s commitment to enhancing railway infrastructure, improving passenger safety, and expanding the railway network across the country. Key initiatives will focus on modernization of railway stations, electrification, doubling of rail lines, and the implementation of Kavach, an Automatic Train Protection System (ATP), aimed at making train travel safer.

Railway Budget 2025: Key Objectives and Priorities

The main priorities in the Railway Budget 2025 are:

1. Passenger Safety: The safety of passengers is the top priority, with investments in the Kavach system for automatic train protection.
2. Infrastructural Upgrades: Several railway stations will be redeveloped, and the network will be expanded to even the remotest corners of India.
3. Electrification and Expansion: Indian Railways will focus on electrifying more routes and doubling railway lines to meet the growing demand for train services.
4. Job Creation and Economic Growth: With increased investments, the government aims to boost economic growth and create more employment opportunities in the railways sector.

State-wise Railway Budget Allocation 2025

The Railway Budget 2025 has allocated funds based on the developmental needs of each state. Below is the detailed breakdown of the allocation to different states:

1. Maharashtra: ₹23,778 crore

Maharashtra has received the highest allocation of ₹23,778 crore. The funds will be used to modernize railway stations, develop high-speed rail corridors, and improve the overall infrastructure in the state. Mumbai’s suburban train network is also expected to see upgrades.

2. Uttar Pradesh: ₹19,858 crore

Uttar Pradesh has been allocated ₹19,858 crore for the development of railway infrastructure. The funds will be used for expanding the railway network, modernizing stations, and improving safety measures across the state.

3. Gujarat: ₹17,155 crore

With a significant allocation of ₹17,155 crore, Gujarat will see enhancements in its railway infrastructure, particularly in the electrification and modernization of key stations such as those in Ahmedabad and Surat.

4. West Bengal: ₹13,955 crore

West Bengal will receive ₹13,955 crore for upgrading its railway services, with a focus on modernizing Kolkata’s iconic Howrah Station and expanding suburban train networks to ease urban congestion.

5. Assam and North-Eastern States: ₹10,440 crore

For Assam and the northeastern region, ₹10,440 crore has been allocated to further develop the rail network, especially connecting remote areas to the national railway grid. This initiative will promote regional connectivity and boost economic development.

6. Jammu and Kashmir: ₹844 crore

Jammu and Kashmir will receive ₹844 crore to enhance the existing railway infrastructure, with special attention to connectivity between Jammu, Srinagar, and other major areas in the region.

Other Key State Allocations:

• Andhra Pradesh – ₹9,417 crore
• Bihar – ₹10,066 crore
• Chhattisgarh – ₹6,925 crore
• Delhi – ₹2,593 crore
• Goa – ₹482 crore
• Haryana – ₹3,416 crore
• Himachal Pradesh – ₹2,716 crore
• Jharkhand – ₹7,302 crore
• Karnataka – ₹7,559 crore
• Kerala – ₹3,042 crore
• Madhya Pradesh – ₹14,745 crore
• Odisha – ₹10,559 crore
• Punjab – ₹5,421 crore
• Rajasthan – ₹9,960 crore
• Tamil Nadu – ₹6,626 crore
• Telangana – ₹5,337 crore
• Uttarakhand – ₹4,641 crore

Focus Areas for Indian Railways in 2025-26

• Safety First: The government is prioritizing the Kavach system, which will be implemented across various railway routes to ensure better safety for passengers.
• Modernizing Stations: Major stations across the country, particularly in metros like Delhi, Mumbai, and Kolkata, will undergo major redevelopment to cater to growing passenger demand.
• Electrification of Rail Routes: A substantial portion of the budget will be allocated to electrifying non-electrified routes, ensuring greener and more efficient rail operations.
• Improved Connectivity: The focus on connecting even remote and underserved areas will not only improve transportation but will also foster economic integration across regions.
• Expansion of Rail Network: Doubling and tripling of rail lines will help reduce congestion, ensuring smoother and faster travel times for passengers.

Significance of Railway Budget 2025

The Railway Budget 2025 is a significant step towards making Indian Railways a world-class transportation system. The allocation of funds aims to address the growing demand for modern, safer, and more efficient train services. Moreover, the focus on infrastructure development is expected to generate thousands of new jobs, which will contribute to India’s economic growth.

The government’s push for the Kavach Automatic Train Protection System is particularly noteworthy. The system will help prevent train accidents and reduce human error, enhancing the overall safety of railway travel. This is part of a broader goal to modernize the railway sector, making it more competitive globally.

The Indian Railways Budget for 2025-26 is the largest-ever allocation for the sector, with a focus on modernizing infrastructure, ensuring safety, and improving connectivity across the country. The state-wise allocations highlight the regional priorities and the government’s commitment to making rail travel safer, more efficient, and accessible. With investments spread across modernization, electrification, and the Kavach system, the future of Indian Railways looks promising.