India’s railway manufacturing ecosystem is increasingly finding global markets, with exports expanding beyond traditional products to include metro coaches, locomotives and railway engineering services. The growth is being driven by rising private sector participation, stronger manufacturing capabilities and new-generation free trade agreements (FTAs), a senior Railway Ministry official was quoted as saying by news agency ANI.
Speaking to ANI on the sidelines of a FICCI seminar on Investment Economics in India: Manufacturing, FDI, and Industrial Transformation, Surendra Ahirwar, Executive Director (Traffic Commercial), Ministry of Railways, said India’s railway sector is no longer limited to government-run operations but has evolved into a wider industrial ecosystem supporting both domestic infrastructure and international exports.
“We have seen export also of the metro coaches and other locomotives and we are having lots of engineering contracts. So we are exporting the engineering services. The engineering exports are constituted majorly by the railway sector. So that’s been a good activity there and a lot of private investment, private economic activity related to the railways is happening in Indian markets,” Ahirwar told ANI.
He explained that the railway sector extends beyond the Ministry of Railways itself, encompassing industries involved in infrastructure development, technology, manufacturing, raw materials and other services that support railway transportation. According to him, this broader ecosystem has encouraged private investment and enabled Indian companies to compete in overseas markets.
FTAs expected to strengthen railway exports
While declining to predict export growth for FY27, Ahirwar said recently signed FTAs are expected to create new opportunities for Indian railway manufacturers by improving market access and integrating the country into global supply chains. However, he stressed that the benefits would ultimately depend on how proactively Indian industry capitalises on these agreements.
“We can be optimistic of growth for sure because the FTAs definitely open lots of opportunities. However, it depends on the private sector and the industry to avail those opportunities. The government will not be doing the trade. The government can only create the situation through FTAs and greater collaboration with countries. The actual execution of the FTAs has to happen through proactive action by the industry,” he told ANI.
Ahirwar described the new-generation FTAs as more than conventional trade agreements, saying they are designed to encourage investment, strengthen economic integration and position India more firmly within global manufacturing and supply chains.
“The government has been doing everything and recently we have been entering into what I call the new-age FTAs. Each FTA is not just a trade agreement. It is also an agreement for investment, an agreement for integration with supply chains. It is an integration of economies, especially the Indian economy with the global supply chain ecosystem. This is going to help not only investment but also economic development,” he said, according to ANI.
Freight reforms aimed at shifting cargo to rail
Alongside export growth, Ahirwar highlighted domestic reforms aimed at improving the competitiveness of Indian Railways. He said the ministry has overhauled the country’s freight rate structure for the first time in nearly seven decades, with the revised pricing receiving a positive response from industry.
“We have changed the fundamental structure of freight rates in the country after almost 70 years. It has evoked a very positive response from the industry, and in the areas where we have already reformed the freight structure, we have registered growth of up to 170-180 per cent. I am sure this change will help us attain the desired modal shift to rail and enhance freight loading by the Railways,” he told ANI.
He also underlined the importance of sustained public and private investment in supporting manufacturing, trade and exports, noting that the government is spending around Rs 11 lakh crore annually on development and investment-led initiatives to strengthen long-term economic growth.