Capital Expenditure (CapEx) of Indian Railways refers to the long-term investments made to develop, expand, and modernise the railway infrastructure and technology. Unlike operating expenses, which cover day-to-day functioning, CapEx focuses on asset creation and enhancement to improve the system’s overall capacity and efficiency. Major areas of capital investment include the construction of new rail lines, track doubling, electrification, procurement of rolling stock, station redevelopment, and the introduction of high-speed rail projects. Strategic projects such as the Dedicated Freight Corridors, Vande Bharat trains, and modern signaling and communication systems exemplify the transformative nature of CapEx initiatives. These are increasingly funded through budgetary allocations, Public-Private Partnerships (PPPs), and foreign direct investments.

The relevance of capital expenditure in Indian Railways lies in its potential to significantly elevate the quality, safety, and competitiveness of the railway network. As India aims to become a global logistics hub, enhancing rail infrastructure is critical for reducing logistics costs, improving freight mobility, and promoting regional development. CapEx also plays a crucial role in job creation, environmental sustainability through electrification, and decongesting saturated routes. Efficient and forward-thinking capital investment ensures that Indian Railways remains a key enabler of economic growth, national integration, and technological progress in a rapidly evolving transport landscape.