In the spirit of Azadi ka Amrit Mahotsav, Indian Railways is transforming into a globally competitive transport network which is backed by the rising foreign investment, international collaborations and a robust domestic manufacturing base.
Rising foreign investment fuels infrastructure expansion
Over the past eleven years, the railway sector has attracted Foreign Direct Investment (FDI) equity inflows worth approximately US$ 942 million. As per the government’s FDI policy, 100% investment is permitted under the automatic route in key infrastructure areas such as high-speed rail, freight corridors, electrification, signaling systems, and passenger terminals. This policy has played a crucial role in attracting global investors and accelerating modernisation.
At the same time, strong domestic funding continues to remain the backbone of expansion. The Gross Budgetary Support (GBS) for railways has seen a rise from Rs. 29,055 Crores in 2013-14 to an all-time high allocation of Rs.2.78 lakh crore for 2026-27. This increase reflects the government’s focus on enhancing safety, expanding networks , upgrading technology and improving passenger amenities.
Further strengthening its global integration, the Ministry of Railways has signed Memorandums of Understanding (MoUs) with countries like Switzerland, Germany, Russia, and Spain. These collaborations focus on advanced areas such as high-speed rail development, multimodal freight and passenger operations, and digital solutions including predictive maintenance systems.
‘Make in India’ push drives export growth
India’s growing self-reliance in railway manufacturing has also translated into strong export performance. Supported by a well-developed industrial ecosystem, the country now produces a comprehensive range of rolling stock, including locomotives, coaches, wagons, and critical components like traction motors, propulsion systems, and metro cars.
Between 2016-17 and early 2026, railway exports from India have reached nearly US$ 3.35 billion (around Rs.26,000 crore). These products are now being supplied to a number of developed nations, including the United States, United Kingdom, Germany, Australia, France, and Canada, along with developed countries such as Bangladesh, Sri Lanka, Mexico, and Mozambique.
The growing global demand the competitiveness of Indian Railway manufacturing in terms of quality and cost. It also reflects the success of policy initiatives aimed at boosting domestic production and positioning India as a key player in the international railway market.