Policy Planned to Boost Local Manufacturing of Rail Tech

• India plans to introduce a new policy to boost domestic railway technology and equipment manufacturing
• The policy will provide funding, technical assistance, and testing facilities
• With Rs 52,108.73 crore allocated in FY27 for locomotives, Vande Bharat train sets, and wagons

India plans to implement its upcoming Rail Tech policy, which will support the development of future railway technology and equipment through local manufacturing efforts.

The railway manufacturing India sector is set to advance through the Genext Rail Tech initiative, supported by a local manufacturing policy that promotes Make in India railways, enhances production of railway components, fosters innovation in rail technology, aligns with broader infrastructure policy, and strengthens the Indian rail industry.

The policy will establish local railway research facilities, which will create innovative solutions while decreasing import needs for Chinese products and assisting with the government's railway modernization development programs.

The Railway Board will provide local businesses with financial support, technical help and testing equipment to foster partnerships between local businesses and research institutions. The policy will drive innovation in mass transport by creating domestic solutions that improve safety, efficiency and maintenance operations, according to officials.

Also Read: Gujarat Aligns Aviation Policy with Centre's Seaplane Push

The Indian Railway Innovation Policy from June 2022 established a funding program which provided startups and small businesses with Rs 1.5 crore for 50:50 cost-sharing grants to create operational prototypes.

The policy gave innovators ownership rights and created a testing environment where they could test their products and receive guaranteed government contracts for their successful low-cost solutions, which developed a more robust domestic rail technology industry.

India imported railway locomotives, rolling stock, and components worth about Rs 6,098 crore in FY 2024-25, with around 55% for Indian Railways and 45% for Metro and Rapid Rail systems. The majority of imports consisted of sub-systems because companies needed individual components to build their products.

China supplies most components to the industry because it provides all necessary bogie wheel sets and mechanical parts. Germany and Austria supply precision engineering items, and the US and Japan provide advanced signalling and diesel propulsion parts.