Budget 2026-27 unveils high-speed rail, freight corridors push

Union Finance Minister Nirmala Sitharaman on Sunday (February 1) said the Union Budget 2026–27 is anchored in “Yuvashakti” and guided by “three kartavyas”, as she announced a major push for sustainable transport, logistics and long-term economic growth.

“In order to promote an environmentally-sustainable passenger system, we will develop seven high-speed rail corridors between cities as growth connectors,” she said while presenting the Union Budget.

Seven high-speed rail corridors

Presenting the Budget in Parliament, Sitharaman proposed developing seven high-speed rail corridors to promote environmentally sustainable passenger transport. The corridors are intended to function as growth connectors by reducing travel time, lowering emissions and supporting regional development. The proposed routes include Mumbai-Pune, Pune-Hyderabad, Hyderabad-Bengaluru, Hyderabad-Chennai, Chennai-Bengaluru, Delhi-Varanasi and Varanasi-Siliguri, linking financial hubs, technology centres, manufacturing clusters and emerging cities.

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“In order to promote environmentally sustainable passenger systems, we will develop seven high-speed rail corridors between cities as growth connectors, namely Mumbai to Pune, Pune to Hyderabad, Hyderabad to Bengaluru, Hyderabad to Chennai, and Chennai to Bengaluru. Delhi to Varanasi, Varanasi to Siliguri,” the Finance Minister said as quoted by ANI.

On tourism-related travel

The Budget also placed emphasis on eco-tourism and nature-based travel. “India has the potential and opportunity to offer world-class trekking and hiking experience,” Sitharaman said, announcing plans to develop sustainable mountain trails in Himachal Pradesh, Uttarakhand and Jammu and Kashmir, along with Araku Valley in the Eastern Ghats and Pudigai Malai in the Western Ghats. Wildlife-focused trails, including turtle trails in Odisha, Karnataka and Kerala, and bird-watching trails around Pulicat Lake, were also proposed.

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On logistics, Sitharaman announced new dedicated freight corridors connecting Dangkuni in West Bengal to Surat in Gujarat, along with plans to operationalise 20 new national waterways over the next five years. “Establish new dedicated freight corridors connecting West Bengal's Dangkuni in the east to Surat in the west. Operationalise 20 new national waterways over the next five years to promote environmentally sustainable cargo movement,” she said.

The Finance Minister said the Budget proposes targeted interventions across six areas to accelerate and sustain growth, reiterating that “The reform express is running on its way and will maintain its momentum to help us fulfil our Kartavya.”

Sitharaman said to promote environmentally-sustainable movement of cargo, she proposed to establish a new dedicated freight corridor connecting Dankuni in the east to Surat in the west.

At present, work on one high-speed corridor between Ahmedabad and Mumbai is in progress. Similarly, two dedicated freight corridors-Eastern and Western- are in operation covering several states and districts.

(With agency inputs)