Economic Survey 2026: Railways emerge as backbone of India’s freight & energy logistics

Economic Survey 2026 outlook on Indian Railways

The Economic Survey 2025–26 also highlighted that Indian Railways is undergoing a transformation, driven by sustained capital investment, rapid network expansion, near-universal electrification and a corridor-based approach to capacity creation. It stated that continued focus on dedicated freight corridors, economic rail corridors under PM GatiShakti and modern signalling and station infrastructure is enhancing throughput, reliability, and multimodal integration.

“These infrastructure-led initiatives will be central for reducing logistics costs, and strengthening connectivity,” the Economic Survey 2026 report said.

Economic Survey 2026: Key infrastructure projects in the Railways sector

• Economic Railway Corridors (PM GatiShakti)

Three corridor programmes – Energy, Mineral & Cement; Port Connectivity; and High Traffic Density routes – are being implemented to strengthen multimodal connectivity and logistics efficiency. 434 projects with an outlay of Rs 11.17 lakh crore have been identified under three corridors and mapped on the PM GatiShakti portal. Of these, 122 projects covering 12,150 km have been sanctioned, and 198 projects spanning 19,779 km are under different stages of appraisal, reads the statement.

• Bullet train project

According to Economic Survey 2026, more than 55 per cent physical progress has been achieved on Mumbai-Ahmedabad High Speed Rail (MAHSR) corridor as on October 2025, with land acquisition completed and most civil packages awarded. The MAHSR corridor is the country’s first bullet train project being executed by NHSRCL.

• Dedicated Freight Corridors (DFCs)

About 2,741 km (96.4 per cent) of the 2,843 km DFC network has been commissioned as of October 2025, with the Eastern DFC (1,337 km) fully completed and 1,404 km of the 1,506 km Western DFC completed, the report said. These corridors are easing congestion on the passenger network, significantly reducing freight transit times and contributing to lowering logistics costs.

• Station Redevelopment

Under the Amrit Bharat Station Scheme, 1,337 stations have been identified for phased redevelopment, with works completed at select stations and progress underway across the country to improve capacity, accessibility and multimodal integration. Further, 15 stations have been identified to develop/redevelop on PPP mode.

• Safety & Technology Upgradation

Large-scale deployment of Kavach [Advance Train Protection (ATP) System], electronic interlocking, automatic block signalling, and track renewal are enhancing network safety and throughput.

• Track upgradation

More than 78 per cent of railway tracks have been upgraded for sectional speed of 110 kmph and above.

• Public–Private Partnerships (PPPs)

18 projects worth Rs 16,636 crore have been completed and seven projects worth Rs 16,334 crore are under implementation as on September 2025, the report reads.