Big leap: Indian Railways sees $942 million FDI surge under new policies

New Delhi: Indian Railways has attracted foreign direct investment (FDI) worth $942 million over the past 11 years, reflecting steady global interest in India’s expanding railway infrastructure sector, the government said on Wednesday.

According to the Ministry of Railways, total FDI inflows in Indian Railways stood at $942 million between 2014-15 and December 2025, underlining growing foreign participation in key rail projects.

100% FDI policy boosts railway infrastructure investment

Replying in the Lok Sabha, Union Minister Ashwini Vaishnaw said 100 per cent FDI under the automatic route is permitted in railway infrastructure, making India an attractive destination for global investors.

The policy enables foreign investment in high-speed rail, dedicated freight corridors, railway electrification, signalling systems, and development of passenger and freight terminals — key growth areas in India’s rail modernisation drive.

Government capex on railways sees sharp rise

The Centre has significantly increased its own spending to accelerate railway modernisation and expansion.

Gross Budgetary Support (GBS) for railways has surged from ₹29,055 crore in 2013-14 to ₹2.78 lakh crore allocated for 2026-27, signalling a strong push towards infrastructure development, safety upgrades, and enhanced passenger amenities.

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Higher domestic investment has strengthened the sector’s competitiveness and enabled large-scale upgrades across the national rail network.

Global partnerships strengthen rail technology and innovation

India is also expanding international railway cooperation, signing agreements with countries including Switzerland, Germany, Russia and Spain.

These partnerships focus on high-speed rail development, multimodal transport systems, IT-enabled railway solutions, and predictive maintenance technologies, positioning India as a growing hub for railway innovation.

Railway manufacturing and exports on the rise

India has developed a strong railway manufacturing ecosystem, producing locomotives, coaches, wagons, and critical components such as traction motors, transformers and metro systems.

Indian railway products are now exported to major markets, including the United States, the United Kingdom, France, Germany, Australia, Bangladesh and Sri Lanka.

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Between 2016-17 and January 2026, India’s railway exports reached $3.35 billion (around ₹26,000 crore), highlighting the country’s growing footprint in the global rail supply chain.

India’s rail sector gains global momentum

The rise in FDI in Indian Railways, coupled with strong government investment and increasing exports, signals robust growth in the sector.

With continued policy support and global collaboration, India is positioning itself as a key player in railway infrastructure, manufacturing, and technology development worldwide.

IANS