This indicator reflects capital investment in Indian Railways, focusing on long-term expenditures aimed at transforming and upgrading the rail infrastructure. Key areas of investment include track expansion, which enhances route capacity and decongests high-density corridors; electrification, reducing dependence on fossil fuels; high-speed rail development, like the Mumbai-Ahmedabad bullet train; and station redevelopment, improving commuter experience. Investments in rolling stock procurement cover the acquisition of modern trains and freight wagons. Indian Railways also emphasises modern signalling systems to improve safety and punctuality. Moreover, the government’s initiatives to attract private investment through PPPs and allow FDI have facilitated faster project execution and technological upgrades. Projects like the Dedicated Freight Corridors (DFCs) and Vande Bharat Express showcase this transformation.

This indicator is crucial for assessing the pace and direction of India’s transportation and infrastructure development. Capital investment in railways enhances operational efficiency, reduces logistics costs, and supports industrial growth by enabling faster and safer movement of goods and people. Modernisation also aligns with India’s sustainability goals, with electrification and energy-efficient trains contributing to net-zero carbon targets. Moreover, as Indian Railways is a major public employer and service provider, investments improve livelihoods, regional connectivity, and economic inclusivity. Enhanced rail infrastructure is vital for achieving Viksit Bharat 2047 and the Sustainable Development Goals (SDGs), particularly in areas of infrastructure (SDG 9), sustainable cities (SDG 11), and climate action (SDG 13).