New Delhi, March 18: The Indian Railway sector has received a total of US$ 942 million in Foreign Direct Investment (FDI) equity inflows from 2014-15 to 2025-26 (up to December 2025). This information was shared by the Union Minister for Railways, Information & Broadcasting, and Electronics & Information Technology, Shri Ashwini Vaishnaw, in response to a query in the Lok Sabha today.
In 2013-14, the Gross Budgetary Support (GBS) for capital investment in Railways was ₹29,055 crore. To support the expansion of the railway network, rolling stock enhancement, safety upgrades, passenger amenities, road safety works, and technological advancements, the Government of India has consistently increased the GBS over the years. For the fiscal year 2026-27, ₹2.78 lakh crore has been allocated. This sustained domestic funding has enabled Indian Railways to invest significantly in infrastructure and technology, helping the sector stay competitive on the global stage.
As part of its ongoing international collaboration efforts, the Ministry of Railways has signed Memorandums of Understanding (MoUs) with countries like Switzerland, Germany, Russia, and Spain. These MoUs focus on technical cooperation in areas such as freight and passenger operations (multimodal transport), high-speed rail development, IT solutions for railway operations and administration, as well as predictive asset maintenance.
Exports to Global Markets
India has developed a robust and diversified railway manufacturing ecosystem, which includes Indian Railways' production units and an established industrial base. The sector now manufactures almost all types of railway rolling stock, including locomotives, passenger coaches, wagons, and critical components such as traction motors, gearboxes, motorized bogies, traction transformers, metro cars, propulsion systems, traction and auxiliary converters, cable harnesses, electronic cards, and magnets.
These products are exported to both developed and developing countries, including Australia, Canada, the United Kingdom, the USA, France, Germany, Mozambique, Mexico, Bangladesh, Sri Lanka, Romania, Spain, and Italy.
From 2016-17 to 2025-26 (up to January 2026), the total value of railway sector exports from India reached US$ 3,355 million (~₹26,000 crore).
FDI Policy in the Railway Sector
Under the Government's FDI policy, as outlined in the FDI Policy Circular dated 15.10.2020 and subsequent amendments, 100% FDI is permitted via the automatic route in the railway infrastructure sector. Key areas where FDI is allowed include:
This liberalized FDI policy aims to enhance India's railway infrastructure, positioning it as a global player in the sector.
