Indian Railways attracts $942 million FDI in 11 years as Rail Exports cross ₹26,000 Crore

New Delhi, India (Metro Rail Today): India’s railway sector is steadily emerging as a global investment and manufacturing hub, attracting US$ 942 million in Foreign Direct Investment (FDI) over the last eleven years while significantly expanding its export footprint. The growth reflects India’s push to modernize railway infrastructure, strengthen domestic manufacturing capabilities, and expand international collaboration.

According to information shared in the Lok Sabha by Union Minister for Railways, Information & Broadcasting and Electronics & IT Shri Ashwini Vaishnaw, the cumulative FDI equity inflow into the railway sector between 2014-15 and December 2025 has reached US$ 942 million. The inflow has been supported by the Government of India’s policy allowing 100% FDI under the automatic route in railway infrastructure, encouraging global investment in the sector.

Expanding Investment and Infrastructure

India has significantly increased public investment in railway infrastructure over the past decade. The Gross Budgetary Support (GBS) for capital investment in Indian Railways has grown sharply from ₹29,055 crore in 2013-14 to an unprecedented ₹2.78 lakh crore allocation for 2026-27.

This substantial funding is being directed towards network expansion, modernization of rolling stock, passenger amenities, safety improvements, electrification, and adoption of advanced technologies. The policy framework also allows foreign investors to participate in areas such as high-speed rail projects, dedicated freight corridors, railway electrification, signalling systems, passenger and freight terminals, rolling stock manufacturing and maintenance facilities, as well as Mass Rapid Transit Systems.

Commenting on the growing momentum in India’s rail sector, Mrs. Mamta Shah, MD & CEO, Urban Infra Group, said, “The consistent increase in public investment combined with an open FDI policy is transforming India into one of the most attractive railway infrastructure markets globally. The scale of modernization, from high-speed rail to advanced signalling and electrification, is creating immense opportunities for technology partnerships and global collaboration.”

Global Partnerships Strengthen Technology Ecosystem

The Ministry of Railways has also been actively pursuing international technical cooperation to enhance operational efficiency and technological capabilities. India has signed Memorandums of Understanding (MoUs) with several countries including Switzerland, Germany, Russia and Spain.

These collaborations focus on areas such as high-speed rail development, multimodal freight and passenger operations, advanced IT solutions for railway operations, and predictive maintenance of railway assets. Such partnerships are expected to accelerate technology transfer and support the modernization of railway operations in India.

India Emerges as a Railway Manufacturing Export Hub

Parallel to infrastructure development, India has built a strong railway manufacturing ecosystem over the past decade. Production units of Indian Railways along with a growing domestic industry base now manufacture nearly the entire range of railway rolling stock and components.

The country produces locomotives, passenger coaches, wagons, metro cars, and a wide range of advanced components including traction motors, gearboxes, motorized bogies, traction transformers, propulsion systems, converters, cable harnesses, and electronic systems.

These products are now being exported to a wide range of international markets including the United States, United Kingdom, Germany, France, Spain, Italy, Australia, Canada, Mexico, Mozambique, Bangladesh, Sri Lanka and Romania.

Between 2016-17 and January 2026, the total value of railway exports from India reached approximately US$ 3.35 billion (around ₹26,000 crore), highlighting the growing global competitiveness of Indian railway manufacturing.

Offering his perspective on the sector’s growth, Dr. Vinod Shah, Director General, Indian Chamber of Railway Industries (Rail Chamber), said, “India’s railway manufacturing ecosystem has matured significantly over the past decade. With strong domestic production capabilities and increasing global demand for cost-effective and reliable rail technologies, Indian companies are well positioned to expand their presence in international markets.”

Driving the Future of Rail Mobility

As India continues to invest heavily in railway infrastructure while strengthening global partnerships and manufacturing capabilities, the sector is poised to play a critical role in supporting economic growth, sustainable mobility, and export-driven industrial development.

The combination of rising public investment, liberalized FDI policies, and growing global demand for rail technologies is expected to further position Indian Railways as a key player in the global railway ecosystem in the coming years.