Rail Budget 2025 - An Overview: Indian Railways has set big goals for the financial year 2025-26, projecting a 16 percent rise in passenger revenue, reaching Rs.92,800 Cr. The increase is largely due to growing demand for premium trains like Vande Bharat and AC3 class services. On the other hand, freight revenue is expected to rise more modestly by 4.4 percent, making a shift towards higher passenger revenue.
Passenger revenue is becoming a larger part of Indian Railways' total income, jumping from 26.4 percent in 2022-23 to 28.6 percent this year. By the fiscal year 20246, it is forecast to make up 30.6 percent of total earnings. While freight still plays a major role, this rise in passenger revenue gives Indian Railways more flexibility to implement policies that attract more cargo from road transport.
Growing Earnings from AC3 and Premium Classes
Earnings from AC3 class tickets are expected to reach Rs.30,089 Cr, by March, a 20 percent increase from last year. This segment's revenue is predicted to grow by another 23 percent in the same fiscal, hitting Rs.37,115 Cr. Similarly, revenue from executive class passengers is projected to increase by 42 percent , reaching Rs.698 Cr, by March, and rise to Rs.987 Cr, in FY26.
Earnings from AC Chair Car services are also on the rise, expected to hit Rs.4,280 Cr. by March showing an increase of 28.6 percent over the previous year. In FY26, this is projected to grow by 31 percent to Rs. 5,626 Cr.
Expanding Train Operations to Meet Demand
To keep up with rising demand, Indian Railways plans to operate more trains, especially with additional general coaches for lower-income passengers. Revenue from second-class general coaches in inter-city trains is expected to nearly double, reaching Rs.1,517 Cr. in FY25.
Railway Minister Ashwini Vaishnaw confirmed there would be no fare hikes, noting that total passenger numbers are expected to rise to 7.5 billion this year, with a further increase to 7.8-7.9 billion next year.
17,500 Non-AC Coaches for Affordable Travel
As part of its focus on affordability, Indian Railways will produce 17,500 non-AC General and Sleeper coaches under the Rail Budget 2025. This will support economically weaker sections of society. The ratio of non-AC coaches to AC coaches will be 2:3, ensuring balanced production.
Amrit Bharat Trains for Better Accessibility
Indian Railways is also rolling out the Amrit Bharat trains, which aim to provide affordable travel with modern features. 100 non-AC Amrit Bharat trains are currently being manufactured at the Integral Coach Factory (ICF) in Chennai. These trains will run at speeds up to 130 km/h and include features like smoother rides and push-pull operation for better acceleration.
Upgrading to LHB Coaches for Safety and Efficiency
The transition from ICF coaches to LHB coaches will take place over the next five years. This upgrade will improve passenger safety, comfort, and reduce maintenance costs. LHB coaches are safer in crashes, provide smoother rides, and are more durable with lower upkeep.
Record Investments for Infrastructure Growth
The Rail Budget 2025-26 has allocated a record Rs.2,65,200 Cr. for the Ministry of Railways. This funding will support various initiatives, including safety improvements, expanded networks, upgraded passenger amenities, and modern rolling stock.
Government’s Focus on Inclusive Growth
Finance Minister Nirmala Sitharaman said the government's commitment to 'Sabka Vikas' (development for all). The Rail Budget reflects this, with plans to improve infrastructure and create a more accessible and efficient railway system. The Modi government is focused on driving economic growth through large-scale infrastructure investments, though the budget presentation was met with opposition protests in Parliament.
The Rail Budget 2025 marks the beginning of a major transformation in Indian Railways, with more coaches, new trains, safer technologies, and increased investment to benefit passengers across the country.