Budget 2026: Finance Minister Nirmala Sitharaman Proposes Surat–Dankuni Dedicated Freight Corridor

Union Finance Minister Nirmala Sitharaman used the Union Budget 2026 to lay out an ambitious vision for India's freight and logistics network, announcing a new dedicated freight corridor between Surat and Dankuni along with a major expansion of inland waterways.

Presenting her ninth consecutive Budget in Parliament on Sunday, Sitharaman said the government wants to make the movement of goods faster, cheaper and more reliable by strengthening both rail and water transport. The proposed Surat-Dankuni corridor will stretch across western and eastern India, linking industrial centres in Gujarat with key markets in West Bengal, and is expected to ease congestion on existing railway routes.

Dedicated freight corridors are designed to carry heavy cargo over long distances without disrupting passenger traffic. The new east-west link is likely to play a crucial role in improving turnaround times for industries and boosting national supply chains.

Alongside the rail proposal, Sitharaman announced plans to operationalise 25 new national waterways over the next five years, signalling a sharper focus on environmentally friendly and cost-effective freight options. Inland waterways are seen as a cleaner alternative for bulk cargo transport.

While detailed timelines and funding plans are yet to be announced, the twin push for a new freight corridor and expanded waterways highlights the government's long-term strategy to modernise India's logistics backbone and support economic growth.