The Rs.149,176 crore budget presented in the Lok Sabha focussed on "transparency and integrity" as well as the safety needs of commuters, Modi said in remarks later.
The budget "keeps in mind the development of India. We can see the great use of technology also", he said.
"This budget shows where we want to take the railways and at the same time where we want to take India through the railways," the prime minister said.
The budget introduces the country's first bullet train, to ply between Mumbai and Ahmedabad, and increase the speed of passenger trains up to 200 km an hour on select routes.
The budget "strengthens institutionalized mechanism" in the Indian Railway network, which carries 23 million passengers every day.
Modi said the railways play "a very important role" in the country's development.
He said the country should have paid more attention to railways after independence in 1947. "Better late than never."
Now in real terms this is a Bharatiya Railway.For a long time, the vision was broken, not unified. Now its the 21st century budget : PM Modi
Now in real terms this is a Bharatiya Railway.For a long time, the vision was broken, not unified. Now its the 21st century budget : PM Modi— ANI (@ANI_news) July 8, 2014