Indian Railways is set for a major upgrade under the Union Budget 2026, which allocated Rs 2,780 billion (Rs 2,780 bn) for the sector. The allocation represents the highest ever outlay and is aimed at modernising services, boosting speed and improving safety across the network. The ministry also secured capital expenditure support of over Rs 2,930 billion (Rs 2,930 bn) to fund infrastructure projects. The budgetary package will finance new railway lines, gauge conversion, doubling of tracks, and upgrades to traffic facilities and rolling stock. The funds aim to accelerate project delivery and enhance capacity on busy routes. A central feature of the plan is the development of seven high-speed rail corridors designed to reduce travel time and strengthen links between major cities. The corridors include Mumbai–Pune, Pune–Hyderabad, Hyderabad–Bengaluru, Hyderabad–Chennai, Chennai–Bengaluru, Delhi–Varanasi and Varanasi–Siliguri and are intended to integrate economic hubs and facilitate movement of people. Authorities have positioned the corridors as growth connectors to support business travel, tourism and logistics by improving inter-city connectivity and easing congestion on existing routes. Safety has been identified as a priority, with plans to upgrade signalling systems, redevelop stations and introduce better rolling stock as part of a wider modernisation drive. The Railway Minister has emphasised that safety remains the top focus for the ministry. The budget sets out a roadmap for a more efficient railway system that can serve both daily commuters and long-distance travellers more effectively. Officials will publish detailed project timelines and phased funding allocations as work progresses. The modernisation push will also include enhanced digital systems to improve punctuality, passenger information and asset management and support operational efficiency across the network. The programme is intended to create opportunities for local suppliers and contractors during construction while delivering long term gains in connectivity and economic integration.