4 min readNew DelhiFeb 2, 2026 05:10 AM IST The road transport and highways sector, alongside Railways, continues to be a primary driver of India’s infrastructure. The two sectors account for almost 47% of the total capital expenditure allocation for financial year 2026-27. Union Finance Minister Nirmala Sitharaman on Sunday announced Rs 12.2 lakh crore for capital expenditure in FY27. Of this, Rs 2.94 lakh crore has been allocated for Road Transport and Highways, and Rs 2.78 lakh crore for the Railways. With Internal and Extra Budgetary Resources (IEBR) of Rs 15,000 crore, the total capex of Railways for FY27 stands at Rs 2.93 lakh crore. It is followed by Defence, Telecommunication and Housing & Urban Affairs. Sitharaman announced seven high-speed rail corridors and one East-West dedicated freight corridor. This will give a major boost to Railways’ push for the Bullet train project and initiative to increase its model freight share viz-a-viz road. India is currently developing its first high-speed rail corridor, the bullet train project, between Mumbai and Ahmedabad, where over 55% physical progress …