What Interim Budget 2024 Holds For Railway & Infrastructure?

Increasing capital expenditure outlay for the next year is being increased by 11.1 per cent to eleven lakh, 18 eleven thousand which will constitute 3.4 per cent of the total GDP signifies the government’s vision for the infrastructure sector. Union Finance Minister, Nirmala Sitharaman Presented Interim Budget 2024-25 in the parliament on Thursday. FM gave an extensive overview and also announced the expansion of major schemes in various sectors including the Railway and Infrastructure sectors. 

In order to ease the travel expenses, FM set forth the projects that have been identified under PM Gati Shakti for enabling multi-modal connectivity which will improve logistics efficiency and reduce cost. 

Railways:

Vande Bharat trains which are considered one step ahead of standardisation in the railway sector will be further amplified as FM has mentioned that 40,000 railway bogeys will be built up to the level of Vande Bharat trains. Apart from this, FM also highlighted the construction of three major corridors; Energy, mineral and cement corridors, Port connectivity corridors, and High-traffic density corridors, that will expedite the development programs. 

She said, “Together with dedicated freight corridors, these three economic corridor programmes will accelerate our GDP growth and reduce logistic costs.”

Remarking on the Interim budget, 2024, Darshana Jardosh, Ministry of State, Railway on X, wrote, “Budget has provisioned to modernise 40,000 bogeys as per Vande Bharat standard, which will enhance the comfortable travel experience across the different routes of crores of passengers.”

In addition, other policies of the government in the last few years also reflected its inclination towards ensuring passenger safety and modernisation of overall railway infrastructure. 

Commenting on the overall development plans mentioned in the interim budget, Vivek Lohia, Managing Director, Jupiter Wagons, said, “This year’s Union unveiled a transformative vision for the rail sector, emphasizing strategic initiatives such as the Port Connectivity Corridor, Energy, Mineral, and Cement Corridor, and the High Traffic Density Corridor. These corridors signify a pivotal step towards enhancing connectivity, driving economic growth, and ensuring passenger safety.”

Railway is not only a mode of transportation for India rather functions as a link to connect diverse cultures and regions across the country. 

Logistics : 

In this interim budget, the government’s approach and attempt to work on logistic costs are visible. According to the data,  In the year 2022, the size of the Indian logistics market was around 274 billion U.S. dollars. It was estimated that this market would grow to 563 billion dollars in 2030, at a compound annual growth rate of 9.4 per cent.

While presenting the budget, FM said, “Together with dedicated freight corridors, these three economic corridor programmes will accelerate our GDP growth and reduce logistic costs.”

Commenting on the allocated policies for the logistic sector, JB Singh, Director, MOVIN Express, said, “The interim budget looks promising and, in the direction to achieve the set goals. Various announcements made demonstrate the government's commitment to bolstering the logistics sector, particularly for Micro, Small, and Medium Enterprises (MSMEs). The focus on providing timely finances, cutting-edge technologies, and relevant training reflects a strategic effort to enhance competitiveness on a global scale.”

Infrastructural development is the need of an hour for India to be the economic global leader. According to the data of the Indian Brand Equity Foundation (IBEF), The US$ 1.3 trillion national master plan for infrastructure, Gati Shakti, has been a forerunner to bring about systemic and effective reforms in the sector and has already shown significant headway.