Railways
The Indian railway system is regarded as the foundation and lifeblood of the economy. Indian railways span thousands of kilometres practically covering the entire nation, making it the fourth largest in the world after the US, China, and Russia. The Railways Board, which has a monopoly over the provision of rail services in India, oversees overseeing the whole infrastructure. Due to its low cost and effective operations, railways continue to be the most popular means of transportation for most Indians when travelling long distances.
India's railway network is recognised as one of the largest railway systems in the world under single management. The railway network is also ideal for long-distance travel and movement of bulk commodities, apart from being an energy-efficient and economic mode of conveyance and transport. Indian Railways is the preferred carrier of automobiles in the country.
The government of India has focused on investing in railway infrastructure by making investor-friendly policies. It has moved quickly to enable Foreign Direct Investment (FDI) in railways to improve infrastructure for freight and high-speed trains. At present, several domestic and foreign companies are also looking to invest in Indian rail projects.
- Vision 2024 has been envisaged to achieve targets of 2024 MT freight loading by 2024.
- Mumbai-Ahmedabad high-speed rail project sanctioned at a total cost of $14.27 Bn.
- As of Feb 2024, 61,813 km length of Broad-Gauge network has been electrified. With this, Indian Railways is rapidly progressing towards its target of 100% electrification and becoming the largest green railway network in the world. Indian Railways has commissioned Wi-Fi at 6,089 Railway stations across the country.
- To achieve its green mission, Indian Railways has solarized more than 1000 stations.
- 400 new generation Vande Bharat Trains to be manufactured during the next three years.
- 100 PM Gati Shakti Cargo terminals for multimodal logistics to be developed during the next three years.
- The railway sector in India aims to contribute about 1.5% to the country’s GDP by building infrastructure to support 45% of the modal freight share of the economy.
- Two Dedicated Freight Corridors (DFC), one on the Western route (Jawaharlal Nehru Port to Dadri) and another on the Eastern route (Ludhiana to Dankuni), have been fast-tracked.
- On cumulative basis from Apr-Jan 2024, Railways have earned INR 1,40,623.4 Cr against INR 1,35,388.1 Cr over the last year from Freight loading.
- New Line/ Doubling/ Gauge Conversion: 5243 kms of conversion have been achieved during 2022-23 as against 2909 kms in 2021-22. The average daily track laying in FY23 comes out to be 14.4 km per day, which is also the highest ever commissioning.
- 785 electric locomotives produced in this FY 2022-23 up to 31st January 2023.
- As on 31st January, 2024, 82 Vande Bharat train services are operating across the Indian Railways.
- Currently, a total of 2359 trips of Kisan Rail trains have been operated on 167 routes, wherein nearly 7.9 lakh Tonnes of consignments have been transported.
- 6521 (98.8% of total stations) Stations have been equipped with Electrical/Electronic Signalling Interlocking System up to 31.12.2023.
- During 2022-23, 30 Freight Terminals were created as compared to 21 Freight Terminals in 2021-22.
- 100% FDI allowed in railway infrastructure under the automatic route.
India’s engagement in the Asia-Pacific region in 2024 has been marked by increased exports of railway technology, track construction services, and equipment. In FY 2024, exports to the region have shown an uptick, with countries like Sri Lanka, Bangladesh, and Myanmar relying on India's expertise in developing their railway systems. India also continues to push for better connectivity in the region through initiatives such as the Mekong-Ganga Cooperation. The export of rolling stock and other railway-related materials has gained traction, with trade figures rising to around $80 million, reflecting the growing demand for Indian technology in countries modernizing their railway systems.
In the Gulf region, India has been expanding its railway influence, with significant contracts in Saudi Arabia, UAE, and Oman. Indian companies are involved in providing consultancy, rail system technology, and equipment. In 2024, exports to this region have seen an increase in railway components and signaling equipment. Bilateral ties with the UAE have been strengthened under agreements such as the Comprehensive Economic Partnership Agreement (CEPA), which encourages technology and infrastructure partnerships. In FY 2024, exports to the Gulf region are estimated at around $100 million.
In Europe, India's focus has been on high-speed trains and advanced railway technologies, with exports growing to countries like Germany, Russia, and France. The export of railway materials, signaling systems, and rolling stock has been increasing, with projections for 2024 suggesting an export figure of $120 million. India is actively involved in MoUs with European nations to supply modern signaling technology and contribute to the growth of electric rail networks. Russia remains a key partner, with continued collaboration on supplying coaches and technology.
The United States remains a key market for India’s railway sector, with India exporting locomotives, signaling systems, and rolling stock. In 2024, India’s exports to the US have been substantial, reaching approximately $50 million. The US continues to modernize its rail network, and Indian companies are providing advanced technology and infrastructure. In addition, collaborations with Canada on green technologies for railways and the modernization of freight operations are gaining momentum. India is also looking to increase its presence in Latin America, with exports to Brazil and Argentina projected to rise as these countries invest in upgrading their railway systems.
India's railway exports to Africa have been growing, particularly in terms of infrastructure development and the provision of locomotives, rolling stock, and rail track. In 2024, India's exports to Africa have risen to approximately $150 million, driven by the growing need for infrastructure development in countries like Nigeria, South Africa, and Kenya. India has been involved in various projects, providing expertise in building modern railway systems, including in countries facing logistical challenges. The African market continues to show a strong demand for Indian railway technology, and India is expanding its footprint through various railway development projects.
In the CIS region, particularly Russia, Kazakhstan, and Uzbekistan, India’s railway exports have increased, with a focus on rolling stock, coaches, and track equipment. In FY 2024, India's railway exports to the CIS region are expected to reach around $50 million, with Russia continuing to be a major partner. India is also looking to expand its collaboration in the CIS region through the supply of modern railway technology and services. The focus is on building stronger technical ties and helping improve freight and passenger services across these countries.
India’s railway sector is on a growth trajectory, with the government’s vision of transforming Indian Railways into a technologically advanced and sustainable network by 2030. The government is investing heavily in infrastructure, technology, and green initiatives, which are expected to significantly boost railway exports globally and strengthen India’s position in the international railway market. As global demand for modern railway technology grows, India is poised to be a key player in the global railway export sector, with 2024 marking another year of strong collaborations and exports across key regions