Lok Sabha Question No. 372 (STARRED), answered on 2026-03-18
Subject: FDI in Railways
Ministry: RAILWAYS
Asked by: Shri Mukeshkumar Chandrakaant Dalal, Dr. Lata Wankhede

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## GOVERNMENT OF INDIA

## MINISTRY OF RAILWAYS

## LOK SABHA STARRED QUESTION NO. 372 TO BE ANSWERED ON 18.03.2026

## FDI IN RAILWAYS

- *372. SHRI MUKESHKUMAR CHANDRAKAANT DALAL: DR. LATA WANKHEDE:

Will the Minister of RAILWAYS be pleased to state:

- (a)  the  details  of  the  key  policy  measures  taken  by  the  Government  to attract Foreign Direct Investment (FDI) in the railway sector;
- (b)  the  year-wise  details  of  the  FDI  received  in  the  railway  sector  since 2020 along with the details of the major projects implemented through FDI  including  the  details  of  the  top  countries  investing  in  country's railway infrastructure through FDI;
- (c) the details of the FDI's contribution in improving railway stations under the  Station  Redevelopment  Programme  particularly  in  Gujarat,  Bihar and Madhya Pradesh;
- (d) the details of the measures taken to encourage collaboration between Indian and foreign railway technology firms for technology transfer; and
- (e) whether the Government is considering any policy revisions planned to further enhance FDI inflows in Indian Railways and if so, the details of the considerations and expected outcomes?

## ANSWER

MINISTER OF RAILWAYS, INFORMATION & BROADCASTING AND

ELECTRONICS & INFORMATION TECHNOLOGY (SHRI ASHWINI VAISHNAW)

- (a) to (e): A Statement is laid on the Table of the House.

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STATEMENT  REFERRED  TO  IN  REPLY  TO  PARTS  (a)  TO  (e)  OF  STARRED QUESTION NO. 372 TO BE ANSWERED ON 18.03.2026 IN LOK SABHA

(a) to (e) : 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 202526 (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.).

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