Indian Railways received a record budgetary allocation of ₹2.78 lakh crore in Union Budget 2026-27, up about 10% from ₹2.55 lakh crore in 2025-26. Capital expenditure for railways was pegged at ₹2.93 lakh crore. New line projects received ₹36,721 crore while track-doubling funding rose to ₹37,750 crore.

Seven new high-speed rail corridors were announced: Mumbai-Pune, Pune-Hyderabad, Hyderabad-Bengaluru, Hyderabad-Chennai, Chennai-Bengaluru, Delhi-Varanasi, and Varanasi-Siliguri. The budget also prioritized the Kavach advanced train protection system rollout for enhanced safety.