Railway stocks surged after the Economic Survey 2025 highlighted major expansion plans for Indian Railways in FY25, boosting investor confidence.
Shares of key railway companies, including Indian Railway Finance Corporation (IRFC), Rail Vikas Nigam Ltd (RVNL), Indian Railway Catering and Tourism Corporation (IRCTC), and IRCON International Ltd, surged on January 31, 2025, following the release of the Economic Survey 2025. The survey outlined extensive infrastructure expansion plans for Indian Railways, a state-owned national railway system under the Ministry of Railways, Government of India.
Railway Stocks See Significant Gains
Following the survey’s release, railway stocks saw a sharp rise, reflecting growing investor confidence in infrastructure growth and capital expenditure in the sector.
- RVNL surged 10% to ₹481.05.
- IRCON also gained 10%, reaching ₹223.
- BEML Ltd, a leading manufacturer of railway and metro coaches, jumped 9.6% to ₹3,879.90.
- IRCTC, the government-backed online ticketing and catering service provider, climbed 6% to ₹824.95.
- IRFC, which finances railway projects, rose 3%, hitting a high of ₹152.50.
Analysts attribute this rally to the government’s emphasis on expanding railway infrastructure, boosting investor sentiment in the sector.
Key Announcements in the Economic Survey 2025
The Economic Survey 2024-25 highlighted that Indian Railways maintained its network expansion momentum in FY25. Some major developments included:
- 2,031 km of railway network commissioned between April and November 2024, compared to 2,282 km in the same period of FY24.
- 17 new pairs of Vande Bharat trains introduced between April and October 2024, adding 228 coaches to the fleet.
- Wagon production rose from 22,042 units in FY24 to 26,146 units in FY25.
- Locomotive production increased from 968 units to 1,042 units over the same period.
Additionally, the survey provided updates on major railway projects, including the Mumbai-Ahmedabad High-Speed Rail Project, India’s first bullet train initiative. As of October 2024, the project had achieved 47.17% physical progress, with an expenditure of ₹67,486 crore. The 508-km project, backed by Japan, now carries a revised cost estimate of ₹1.08 lakh crore.
Government’s Infrastructure Push
The Indian government has consistently focused on infrastructure development over the past five years. Capital expenditure on core infrastructure, including railways, roads, airports, and ports, grew at 38.8% from FY20 to FY24. Post-elections, spending on infrastructure projects accelerated between July and November 2024, ensuring steady progress in capacity expansion.
With continued investment in rail and transport infrastructure, experts anticipate further growth in railway stocks, making them a key focus for investors in the coming months.
