Many steps are being taken by the government in the country for the development of railways. Along with this, the government has also started new trains in the last few years. Among these, Vande Bharat train is also very special. In view of the development taking place in Railways, the stocks related to the railway sector have also grown in the stock market. Ajay Garg, Director and CEO of SMC Global Securities has given important information about how important the railway sector can be after the elections.
money spent
Ajay Garg says that the government is spending a lot of money on railway modernization and capacity upgrading. This expenditure is so important for the country that there is no possibility of any meaningful change in it due to the election results. India is set to revolutionize the development of its railway infrastructure with an ambitious agenda in the coming years.
major initiatives
Ajay Garg said that the plan includes several major initiatives like acquisition of 8 high-speed Bullet Trains, modernization of more than 1300 railway stations and adequate availability of 400 Vande Bharat trains and 3000 new passenger trains in the next 5 years. There is also investment. A record Rs 2.4 lakh crore was allocated in budgetary support to the Railway Ministry in the Union Budget 2023-24. A huge allocation of Rs 1.85 lakh crore was made for capital expenditure in the current financial year. However, the Railways still needs to address some shortcomings, especially with regard to safety and on-time arrivals.
bullish potential
Apart from this, significant progress is expected in the development of India's dedicated freight corridor, which aims to handle 45 percent of the country's freight, said Ajay Garg of SMC Global Securities. These efforts collectively represent a significant sector capital expenditure opportunity of Rs 50 lakh crore in Railways, driven by a huge market. And as is expected, the growth in railways will continue if the current government returns to power. Continued government commitment is critical to achieving a truly world-class rail system in India, which requires long-term investment strategies.
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