Indian railways.
Credit: DH file photo
Finance Minister Nirmala Sitharaman will present the 8th consecutive Union Budget on February 1, 2025. Reports suggest that the government is mulling over cutting income tax for those who are earning up to Rs 15 lakh a year in February's budget, in turn providing relief to the middle class.
The freight sector has pinned high hopes on the Union Budget FY 2025-26 documents and is keeping the fingers crossed regarding their expectations from the government's most important financial document of the year.
Here's what Vivek Lohia, Managing Director, Jupiter Wagons Limited has to say--
“As we look ahead to the Union Budget 2025-26, it is imperative that the Ministry of Railways adopts a multi-pronged approach to strengthen freight operations.
Accelerating the expansion of Dedicated Freight Corridors (DFCs), including the newly introduced 'Central India to Coast via DFC,' will ensure faster, cost-efficient, and reliable freight movement, significantly enhancing the global competitiveness of Indian industries.
Increasing the average speed of freight trains to 50 KMPH, deploying advanced 12,000 HP electric locomotives, and increasing the length of freight trains will be pivotal in accelerating freight loading. A strategic focus on railway geography assessments for sectors such as mining, NTPC, petrochemicals, cement, steel, FCI, dry ports, fertilizers, and textiles will ensure that freight operations align with India’s industrial needs.
Simultaneously, capital expenditure must prioritize modernizing infrastructure, urban rail projects, and innovative strategies such as the real-time information system (RTIS) and the separation of parcel traffic from passenger operations to minimize delays and improve overall efficiency.
Dedicated Kisan Rails for perishables will further support agricultural supply chains.
Equally vital are policies that incentivize domestic manufacturing under the 'Make in India' initiative.
Expanding PLI schemes to include components such as rail wheels, axles, advanced bogies, and high-speed passenger coach components, alongside export incentives, will drive innovation and boost the railways' global footprint.
Additionally, the government should encourage public-private partnerships and provide financing for capacity expansion, fostering long-term growth. Bridging the talent gap in heavy engineering and R&D-focused companies through skill development and training programs will further strengthen the sector.
As Indian Railways progresses toward Net Zero Carbon status, this budget can be a transformative step in driving economic growth and sustainability.”
Union Budget 2025 | Nirmala Sitharaman, who continues to be Finance Minister, will present her record 8th Union Budget this time. While inflation has burnt a hole in the pockets of 'aam janata', reports suggest there might be a tax relief for those making up to Rs 15 lakh per year. Track the latest coverage, live news, in-depth opinions, and analysis only on Deccan Herald. Also follow us on WhatsApp, LinkedIn, X, Facebook, YouTube, and Instagram.