EY India has recommended that the government consider reducing its stake in railway public sector units (PSUs) as a strategic measure in Budget 2024-25. This proposal aims to optimise fiscal management and foster private sector participation in India's railway infrastructure development.

The suggestion comes amidst efforts to enhance operational efficiency and attract investments in the rail sector. EY India emphasises the potential benefits of reducing government ownership in rail PSUs, citing improved financial performance and increased market competitiveness as key advantages.

According to EY India, a reduced stake could unlock new opportunities for private sector partnerships and innovations in rail infrastructure. This move aligns with broader objectives to streamline governance, promote transparency, and leverage private sector expertise in driving the growth of India's railway network.

The recommendation underscores the need for strategic reforms to sustainably strengthen the railway ecosystem, ensuring robust growth and modernization. By encouraging private sector involvement through stake reduction, the government aims to stimulate infrastructure development while optimising public resources effectively.

Overall, EY India's proposal seeks to support economic recovery efforts post-pandemic and enhance the resilience of India's railway infrastructure against future challenges.