After months of uncertainty, India resumes train coach exports to Bangladesh; ties back on track?

New Delhi: India is expected to restart railway coach exports to Bangladesh in July, with a rake of up to 20 broad-gauge passenger coaches set to be delivered under a major ₹915 crore contract being executed by RITES, the export arm of Indian Railways.

The shipment will be the first since Bangladesh underwent a political transition following the ouster of former Prime Minister Sheikh Hasina. Officials said preparations are underway for the handover of the coaches, which are being manufactured at the Rail Coach Factory in Kapurthala, Punjab.

The delivery forms part of a larger agreement under which RITES will supply 200 broad-gauge passenger coaches to Bangladesh Railway. The contract was awarded to the state-owned engineering and consultancy company in May 2024 through a global competitive bidding process and is financed by the European Investment Bank (EIB).

Implementation of the project reportedly slowed after the change in government in Dhaka, but officials now say the programme has returned to schedule. The first rake is expected to be ready for export in July, with further deliveries planned in phases over the duration of the contract.

India has become an important supplier of railway equipment to Bangladesh in recent years. Before the current deal, India supplied Bangladesh Railways with 120 broad-gauge passenger coaches, 36 broad-gauge locomotives and 10 metre-gauge locomotives as part of broader efforts to strengthen transport connectivity between the neighbouring countries.

The latest agreement goes beyond the supply of coaches and also includes design assistance, spare parts support, training programmes and commissioning services. The project includes a 36-month supply and commissioning period followed by a 24-month warranty phase.

The restart of deliveries is expected to contribute positively to RITES' revenue in FY27. Company Managing Director Rahul Mithal recently indicated that revenue growth is likely to improve as deliveries under the Bangladesh contract begin during the current financial year.

The Bangladesh order is among several overseas railway projects being pursued by RITES as the company expands its international presence across South Asia, Africa and other emerging markets. The initiative reflects India's growing capabilities in railway manufacturing and engineering services.

The resumption of coach exports also highlights the continued strength of economic and infrastructure cooperation between India and Bangladesh despite political changes in Dhaka. Railway connectivity remains a key area of bilateral collaboration, with both countries investing in transport links aimed at boosting trade, travel and regional integration.

With the first shipment expected next month, officials say the project is back on track and subsequent deliveries will continue according to the agreed schedule.