Railway Sector Budget 2024: Finance Minister Nirmala Sitharaman announced a Rs 2,55,000 crore budget allocation for railways; stocks to watch out!

The Indian Railways is a vast network that spans over 1,26,000 kilometres and consists of over 7,300 stations.

India's railway network is set for a major boost with the implementation of three crucial economic corridor programs under the PM Gati Shakti initiative. These programs focus on:

Energy, mineral and cement corridors: Streamlining the transportation of vital resources like coal, iron ore, and cement, contributing to industrial growth.

Port connectivity corridors: Enhancing efficiency by directly connecting ports to industrial hubs, reducing transportation time and costs.

High traffic density corridors: Decongesting busy routes by creating dedicated freight corridors, leading to smoother operations and faster passenger travel.

These projects, along with the existing dedicated freight corridors, are expected to significantly improve logistics efficiency, reduce costs, and accelerate India's GDP growth. Additionally, 40,000 existing coaches will be upgraded to Vande Bharat standards, enhancing passenger safety, convenience, and comfort.

Recognizing the growing urban population, the initiative also emphasizes the expansion of metro rail and NaMo Bharat programs in major cities. These projects focus on transit-oriented development, aiming to transform urban landscapes and cater to the evolving needs of a rapidly urbanizing India.

With a budget allocation of Rs 2.55 lakh crore, this initiative marks a significant investment in modernizing and expanding India's railway network. The expected outcomes – improved logistics, reduced costs, enhanced passenger experience, and efficient urban development – promise a positive impact on the nation's economic growth and quality of life.

The Indian Railways is a vast network that spans over 1,26,000 kilometres and consists of over 7,300 stations. In 2022-23, the network saw a significant expansion of over 5,200 kilometres of track, which is the highest ever recorded. The railways operate over 13,500 passenger trains and 9,100 freight trains daily. As of December 2023, freight loading reached 1154.67 million tonnes, with December alone recording an impressive 138.99 million tonnes, marking a 6.37 per cent improvement over the same period last year.

The Indian railway system is considered the backbone of the Indian economy and is one of the largest railway systems in the world under single management. It is an affordable and efficient mode of transportation for long-distance travel and is also ideal for the movement of bulk goods. Indian Railways is the preferred carrier of automobiles in the country.

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Disclaimer: The article is for informational purposes only and not investment advice.