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Most of the Indian territory is already covered under railway network. Only J&K & North east has limited connectivity. Kashmir valley will be soon covered by railway line till Pakistan border then a new line will be constructed to Leh via Kargil & there will be another line which will pass through one of the most difficulty places in the world(Manali to Leh). In north east I don't think we should expand railway in Sikkim till China border for now. In other areas like AP & southern eastern part of NE is being covered rapidly as I write here. So almost all of India will be covered with little increase in line length. What we need is to average speed, top speed is good enough for now. We should increase the track length instead of line length. More lines should be made 4 track based instead of two. It will free up the lines a bit which we can utilize to increase the average speed.

There is always room for expansion and more trains are needed where the trains are overcrowded. At least if are not increasing the track length at desired pace, we should work to make train journeys comfortable and safe.

Overall safety of our railway crossings needs to be monitored and improved to reduce fatalities.
 
Yes there is room for expansion but not on the scale of china as their interior areas are rarely covered. Naxal affected areas are the one which are not covered fully as in other places. So yes there is room for expansion but need is also low as these areas have very minimal population & areas rich in minerals are already getting connected as we post here. For comfortably we need more tracks like triple or in cases even four tracks. Railway crossings are getting shut down one by one on busiest routes & in less busy routes target is to bring the unmanned crossing to nil by next year( read in railway budget, not sure).
 
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