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Railways

India’s railway sector is a high-growth investment opportunity, driven by government initiatives, infrastructure development and increasing passenger and freight traffic

100%

14 states and UTs have 100% electrified rail tracks

4th

largest rail network in the world catering to 18 Mn passengers and 4.35 Mn tons of freight daily

2nd

Largest passenger transport output in the world

Sector Overview

The Indian Railway Sector is one of the country’s transportation infrastructure’s cornerstones, connecting vast geographical regions and facilitating the movement of passengers and goods across the nation. The sector, with one of the largest railway networks globally, plays a pivotal role in driving economic growth, enabling trade and fostering social inclusion.

Recent reports and studies underscore India’s increasing focus on modernizing and expanding its railway infrastructure to meet the growing demands of a rapidly developing economy.

Initiatives such as the Dedicated Freight Corridor (DFC) project and the modernization of existing railway stations highlight the government’s commitment to enhancing efficiency, safety and connectivity within the railway sector. Moreover, with the advent of digital technologies and data analytics, there is a growing emphasis on leveraging innovation to improve operational efficiency and passenger experience. Reports from organizations like the Asian Development Bank (ADB) highlight the significant potential for growth and transformation within the Indian railway sector, driven by factors such as increased investment, technological advancements and strategic policy interventions.

As India continues to prioritize the development of its railway infrastructure, the sector is poised for significant growth, offering opportunities for both domestic and international stakeholders to contribute to its modernization and expansion while further solidifying its position as a key driver of India’s socio-economic development.

Why Invest in Railways

Passenger Growth

29% increase in rail passenger forecast from 2021 (9,457 Mn) to 2031 (12,213 Mn)

Freight Growth

157% increase in expected freight handled by Indian Railways from 2021(1,231 Mn Tonnes) to 2023 (3,167 Mn Tonnes)

Focus on Capex

National Rail Plan 2030 envisages USD 107 Bn Capex in 2026-31

Surge in Demand

Demand for Locomotives is expected to increase in the period from 2026 to 2031. This would imply that demand for rolling stock will surge by 25% from 2026 to 2031

Incentives & Schemes

Policy Archive