**Executive Summary**
This report outlines the significant growth of Indian Railways, highlighting US$ 942 million in FDI equity inflows between 2014 and 2025 and ₹26,000 crore in exports since 2016. The document details the government's policy allowing 100% FDI under the automatic route for railway infrastructure and notes a substantial increase in Gross Budgetary Support, reaching ₹2.78 lakh crore for the 2026-27 period. Key focus areas include international technical collaborations, domestic manufacturing expansion, and infrastructure modernization.
**Key Points / Main Content**
**Foreign Direct Investment (FDI) Policy**
* **100% FDI Allowance:** Under the Government’s FDI Policy, 100% investment is permitted via the automatic route in the railway infrastructure sector.
* **Permitted Areas:** Investment covers construction, operation, and maintenance of suburban corridors (via PPP), high-speed train projects, dedicated freight lines, and rolling stock manufacturing.
* **Infrastructure Scope:** FDI applies to railway electrification, signaling systems, freight/passenger terminals, mass rapid transport systems, and industrial railway sidings.
**Financial Support and Inflows**
* **Equity Inflow:** Total FDI equity inflow from 2014-15 to December 2025 reached US$ 942 million.
* **Budgetary Growth:** Gross Budgetary Support (GBS) increased from ₹29,055 crore in 2013-14 to an allocated ₹2.78 lakh crore for the 2026-27 fiscal year.
* **Investment Goals:** Funding is directed toward network expansion, safety improvements, technology upgradation, and passenger amenities.
**International Collaboration and Manufacturing**
* **Strategic MoUs:** The Ministry of Railways has signed agreements with Switzerland, Germany, Russia, and Spain for technical cooperation in high-speed rail, multimodal transport, and IT solutions.
* **Domestic Ecosystem:** India has developed a diversified manufacturing base producing locomotives, coaches, metro cars, and critical components like traction motors and propulsion systems.
* **Predictive Maintenance:** Collaborations extend to administrative IT solutions and the predictive maintenance of assets.
**Export Performance**
* **Export Value:** From 2016-17 to January 2026, railway sector exports totaled approximately US$ 3355 million (~₹26,000 crore).
* **Global Reach:** Indian-manufactured rolling stock is exported to both developed and developing nations, including the USA, UK, Canada, Australia, France, and various countries in Africa and Asia.
**Impact Analysis**
**Ministry of Railways / Government of India**
**Impact**
The Ministry is managing a significantly expanded budget and a liberalized investment framework intended to modernize the national rail network and compete globally.
**Action Required**
Administer the ₹2.78 lakh crore GBS for 2026-27 and facilitate the 100% FDI automatic route projects to ensure infrastructure targets are met.
**Foreign Investors**
**Impact**
Investors gain full equity access to major infrastructure projects, including high-speed rail and freight lines, without requiring prior government approval under the automatic route.
**Action Required**
Identify and evaluate project opportunities within the permitted areas such as suburban corridors, signaling systems, and terminal construction.
**Domestic Manufacturing Industry**
**Impact**
The industry has transformed into a global export hub for rolling stock and critical components, supported by a strong domestic ecosystem of production units.
**Action Required**
Continue the production and technological development of locomotives and components to sustain export growth and meet international standards.
**International Technical Partners (Switzerland, Germany, Russia, Spain)**
**Impact**
These nations are positioned as key collaborators in the technical evolution of Indian Railways, specifically regarding high-speed rail and IT integration.
**Action Required**
Fulfill the technical cooperation requirements outlined in the signed Memorandums of Understanding (MoUs) regarding freight, passenger operations, and asset maintenance.
Key Entities Referenced
FDI Policy Circular dated 15.10.2020: The government policy framework that permits 100% Foreign Direct Investment (FDI) under the automatic route for railway infrastructure projects.
Ministry of Railways: The primary government ministry responsible for managing Indian Railways, infrastructure development, and international technical collaborations.
Shri Ashwini Vaishnaw: The Union Minister for Railways who provided the official report to the Lok Sabha regarding FDI inflows and railway export performance.
Ministry of Railways
Indian Railways Attracts US$ 942 Million FDI
Equity Inflows Over Last 11 Years, Including
Under the Automatic Route, to Boost its
Infrastructure
MoUs signed with Switzerland, Germany, Russia, and Spain
for High-Speed Rail, Freight & Passenger Operations, and
Advanced IT Solutions through Technical Collaborations
Backed by Domestic Manufacturing of Locomotives,
Coaches, Wagons, Metro Cars, and Critical Components,
Indian Railways’ Exports Reach ₹26,000 Cr During Last 9
Years
Indian Railways Rolling Stocks Exported to Developed and
Developing Countries Including USA, UK, Germany, Australia,
Canada, France, Spain, Italy, Mozambique, Mexico,
Bangladesh, Sri Lanka, and Romania
Posted On: 18 MAR 2026 4:06PM by PIB Delhi
As per the Government’s FDI Policy Circular dated 15.10.2020, as amended from time to time, 100% FDI
is permitted under the automatic route under the Railway Infrastructure sector. The permitted areas include
construction, operation and maintenance of the following:-
• Suburban corridor projects through PPP,
• High speed train projects;
• Dedicated freight lines;
• Rolling stock including trainsets and locomotives/coaches manufacturing and maintenance
facilities;
• Railway Electrification;
• Signalling systems;
• Freight Terminals;
• Passenger terminals;• Infrastructure in industrial part pertaining to railway line/sidings including electrified railway lines
and connectivity to main railway line; and
• Mass Rapid Transport Systems.
A total Foreign Direct Investment (FDI) equity inflow from 2014-15 to 2025-26 (upto December 2025) in
Railway Sector is US$ 942 Million.
The Gross Budgetary Support (GBS) for capital investment in Railways was ₹29,055 Crore in 2013-14. In
order to provide adequate support for network expansion, rolling stock augmentation, safety improvement,
passenger amentities, road safety works and technology upgradation, Government of India consistently
augmented the Gross Budgetary Support (GBS) every year and for 2026-27, ₹2.78 lakh crore has been
allocated. Adequate domestic funding has helped the Indian Railway sector to invest more in infrastructure
and technology in order to compete with the global market.
Further, as an ongoing process of International technical collaboration, Ministry of Railways has signed
Memorandums of Understanding (MoUs) with Switzerland, Germany, Russia, Spain etc. The MoU has
been signed for technical cooperation in the areas of Freight and Passengers operations (Multimodal
transport), High-Speed rail development, and IT solutions for railway operations and for administrative
purposes, Predictive Maintenance of Assets etc.
Export to other countries
Over the past decade, India has developed a strong and diversified railway manufacturing eco-system
comprising of Indian Railways’ Production Units and Industry base.
Presently, Industry manufactures almost the entire range of railway rolling stocks such as locomotives,
passenger coaches, wagons and critical components such as Traction motors, Gear Boxes, Motorized
Bogies, Traction transformers, Metro cars, Propulsion system, Traction and Auxillary converters, Cable
harness, Electronic cards, Magnetics etc. in India.
These items are exported to both developed as well as developing countries such as Australia, Canada,
United Kingdom, USA, France, Germany, Mozambique, Mexico, Bangladesh, Sri Lanka, Romania, Spain
and Italy etc.
With this supportive eco-system in place, during 2016-17 to 2025-26 (upto January 2026), total value of
exports in Railway sector from India has reached US$ 3355 Million (~₹26,000 cr.).
This information was provided by the Union Minister for Railways, Information & Broadcasting and
Electronics & Information Technology, Shri Ashwini Vaishnaw, in a reply to a question in Lok Sabha
today.
*****
Dharmendra Tewari/ Dr. Nayan Solanki/ Manik Sharma
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