Railway Minister Ashwini Vaishnaw on Wednesday informed the Lok Sabha that the railway sector has attracted $942 million in foreign direct investment (FDI) equity inflows between 2014-15 and 2025-26 (up to December 2025).
100% FDI Allowed in Railway Infrastructure
Citing the FDI policy circular dated October 15, 2020, Vaishnaw said 100% FDI is permitted under the automatic route in railway infrastructure.
The permitted areas include:
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Suburban corridor projects through PPP
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High-speed train projects
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Dedicated freight corridors
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Rolling stock manufacturing and maintenance
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Railway electrification and signalling systems
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Freight and passenger terminals
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Mass rapid transport systems
This policy has played a crucial role in attracting global investment into India’s railway ecosystem.
Massive Jump in Budgetary Support
The Minister highlighted a sharp increase in Gross Budgetary Support (GBS) for capital investment:
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₹29,055 crore in 2013-14
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₹2.78 lakh crore allocated for 2026-27
The increased funding will support:
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Railway network expansion
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Passenger safety improvements
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Enhanced amenities
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Road safety works
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Technology upgrades
Global Partnerships Strengthen Rail Sector
The Ministry of Railways has signed MoUs with countries like Switzerland, Germany, Russia, and Spain to enhance technical collaboration.
These partnerships focus on:
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Freight and passenger operations
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Multimodal transport systems
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High-speed rail development
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IT-based railway solutions
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Predictive maintenance technologies
Strong Domestic Manufacturing and Rising Exports
Vaishnaw said India has built a strong and diversified railway manufacturing ecosystem over the past decade.
The country now produces:
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Locomotives
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Passenger coaches and wagons
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Metro trains
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Key components like traction motors, transformers, and electronic systems
These products are exported to several countries, including the United States, United Kingdom, Germany, Australia, Canada, France, Spain, Italy, Bangladesh, Sri Lanka, and Mexico.
Railway Exports Cross ₹26,000 Crore
Exports from the railway sector reached $3,355 million (around ₹26,000 crore) between 2016-17 and 2025-26 (up to January 2026), reflecting India’s growing presence in the global rail market.
Focus on Modernisation and Global Leadership
The Minister подчеркed that increased investment, global collaboration, and domestic manufacturing are helping Indian Railways modernise rapidly and emerge as a key player in the global transportation sector.
