Davinder Sandhu, Co-Founder & Chair, Primus Partners, shares his view on the rising capital expenditure in Indian Railways.He highlights that Indian Railways has witnessed a steady rise in capex allocations over the past five years, reflecting a clear focus on modernization and expansion. With the government’s consistent push on railway capex, there is a rising industrial capacity to supply goods and services for electrification, signaling, track expansion, and modern rolling stock. The Ministry has also made provisions to meet its interest liabilities, with the expenditure budget showing the payment of the “capital component” for leased assets reaching ₹27,904.65 crore in FY26, up 34.5% from ₹20,741.37 crore in FY24. About ₹1.92 lakh crore (72%) of the 2024-25 budgeted capex has already been spent by January 2025. Investor confidence in the sector remains strong, as reflected in the valuations and share prices of most railway-related companies.