InvestorQ : Which stocks with benefit with the Vande Bharat trains being introduced as in the Union Budget 2022?
Nikita Damle made post

Which stocks with benefit with the Vande Bharat trains being introduced as in the Union Budget 2022?

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natasha Samani answered.
12 months ago
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The COVID pandemic came as a hard kick for the travel and transport sector worldwide. However, the Indian Railways still managed to recover from the negative consequences, with its gross revenue standing at $24.78 billion in FY20. To further revolutionize the Indian Railways and take forward the government’s mission of ‘Make In India’, Finance Minister Nirmala Sitharaman, in the Union Budget, has announced the introduction of 400 new Vande Bharat trains.

Vande Bharat trains, also known as Train 18, are high-speed, intercity, EMU trains. Presently there are only two Vande Bharat trains that were first introduced in 2019. The main idea behind the introduction of Vande Bharat trains was to make the trains in India, avoiding imports from Europe. The Vande Bharat trains cost 40% cheaper to make in India than to import from Europe.

With the announcement, the Indian government has provided a Rs 40,000 crores business opportunity that would be coupled with immense employment and spin-off benefits. The government plans to roll out the 400 trains in the next three years. As per the Indian Railways Minister Ashwini Vaishnav, the upgraded Vande Bharat trains are expected to be ready for tests in April and commercial production is expected to start in August/September 2022.

The announcement is a major boost to the Railways sector and is expected to positively affect the profitability and revenue of the Indian Railways. For the investors, this comes as a piece of welcome news as the positive effect will also be seen on the shares of IRCTC, IRFC, etc., along with contributing to the growth of the Indian economy.
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