India’s rail development is accelerating with modernization initiatives like high-speed rail corridors, metro expansions, and freight corridors, boosting connectivity and economic growth. Focused on sustainability and innovation, the sector is transforming into a global benchmark for integrated transportation solutions.
The Government is dedicated to advancing economic growth and environmental sustainability, as well as modernizing and growing the rail network and enhancing passenger and freight services. As a result, the government has prioritized and made the railway industry a crucial part of its infrastructure development strategy.
The key policies and programmes impacting the railway sector development are:
Policies & Programmes
| Viksit Bharat 2047 | Viksit Bharat 2047 envisions a transformative future for India’s rail sector, driving sustainability, innovation, and seamless connectivity. With advanced high-speed rail, modernized freight corridors, and smart urban transit, the vision aims to make railways the backbone of India’s economic growth and green mobility. |
| National Rail Plan | By augmenting the rail infrastructure to accommodate a potential increase in freight and passenger traffic, this plan seeks to make the railway system “future ready” by 2030. This will lower logistical costs and enhance the modal share of railways in the transportation sector. |
| National Infrastructure Pipeline |
The NIP is a comprehensive plan that the government unveiled to fund infrastructure projects from 2019 to 2025 in a variety of industries, including energy, transportation, railroads, and urban development. It seeks to increase economic growth and enhance living standards by making wise investments in vital infrastructure. |
| Increasing Investments in Green Mobility |
As a result of the emphasis on environmentally friendly transportation, Railways has set high goals for the electrification of its network: 100% electrification, a decrease in reliance on fossil fuels, and the advancement of environmental sustainability. |
| Mission 3000 | Railways has set an ambitious goal called Mission 3000 to load ~30 lakhs tonnes (3 million tonnes) of freight every year. The objectives of this effort are to lower transportation costs, increase efficiency, and support the railways’ freight capacity. |
| Refurbishment of Older Rolling Stock | The goal of refurbishing older rolling stock is to improve safety, dependability, and comfort by modernizing and upgrading aging railway coaches and locomotives. |
| Dedicated Freight Corridors |
These corridors guarantee quicker and more effective freight movement between important ports and industrial areas. |
| Semi- High Speed Rail Projects |
India is developing semi-high speed rail projects that will modernize current tracks and add trains with a top speed of 160–200 km/h. These developments will cut travel times, improve passenger comfort, and increase the overall effectiveness of the country’s railway system. |
| High Speed Rail Projects |
With the goal of deploying trains that can travel at speeds of above 250 km/h, high-speed rail projects in India are a revolutionary step that will significantly reduce travel times, foster economic growth, and establish new benchmarks for passenger rail transportation. |
The government’s goal is to transform the railway industry into a more effective, sustainable, and passenger-friendly method of transportation is emphasized by these policies and programmes.
Mergers, Acquisitions and Joint ventures
In the railway industry, firms strategically engage in Mergers, Acquisitions and Joint Ventures as a way of expanding their market share and company reach. In order to take part in new initiatives, expanding into new markets, obtaining economies of scale and strengthen their competitive edge through the pooling of resources and skills, companies form these mergers and joint ventures (JVs). When a firm makes an acquisition, it takes over complete administrative authority of the acquired company.
Some of the key mergers, acquisitions and partnerships in the railway sector are:
| Year | Type | Company 1 | Company 2 | Product | Remarks |
| 2016 | Acquisition | Wabtec | Faiveley Transport |
Rolling Stock Components |
This was focused on increasing Wabtec’s product range and market share in the rail sector globally including India. It further expanded Wabtec’s portfolio to braking systems and passenger access solutions. |
| 2018 | Acquisition | Wabtec | GE Transportation |
Locomotives | This global merger also impacted Wabtec’s position in India since the locomotive project in Bihar had been awarded to GE Transportation to manufacture and supply 1,000 Evolution Series locomotives. |
| 2022 | Acquisition | Jupiter wagons |
Stone India | Brakes | Jupiter Wagons Ltd. (JWL) purchased Stone India Ltd., a company that was a supplier to the Indian Railways with engineering products and railway braking systems. |
| 2022 | Joint Venture |
Stadler Rail | Medha Servo Drives |
Coaches | In order to build a new rail coach manufacturing facility in Telangana, Stadler Rail and Medha Servo Drives signed a joint venture (JV) agreement. |
| 2022 | Acquisition | Wabtec | Masu Brakes | Brakes | Wabtec Corporation purchased an Indian company Masu Brakes, a company that offers friction solutions to the railway and automobile industries. |
| 2023 | Joint Venture |
Rail Vikas Nigam Limited |
Transmash holding (TMH) |
Vande Bharat Trainsets | Rail Vikas Nigam Limited (RVNL) and Transmashholding (TMH) established a collaborative Joint Venture (JV) company – Kinet Railway Solutions aimed at producing ~120 sleeper version Vande Bharat trains. |
| 2023 | Consortium | BHEL | Titagarh Rail Systems |
Vande Bharat Trainsets | The consortium formed by Bharat Heavy Electricals Limited (BHEL) and Titagarh Rail Systems secured a major contract for the manufacturing and maintenance of 80 Vande Bharat Trains. |
| 2023 | Consortium | Ramkrishna Forgings Limited | Titagarh Rail Systems |
Forged wheels | The consortium was formed to manufacture and supply forged wheels to the Railways. |
| 2024 | Acquisition | Jupiter Wagons |
Bonatrans India |
Wheel solutions | Jupiter Wagons Ltd. has made a strategic acquisition of Bonatrans India Pvt Ltd. for INR 271 crores (USD 32.65 million) and will help Jupiter wagon to expand its product offerings in the rail sector. |
These collaborations are vital for bringing advanced technologies, scaling manufacturing capabilities, and entering new markets. Companies leverage mergers and acquisitions to expand their portfolio, improve efficiency, and gain a competitive edge by pooling resources, technologies, and expertise.
Such partnerships and strategic mergers not only enhance India’s domestic rail infrastructure but also position the country as a significant player in the global rail industry, fostering technology transfer, economic growth, and employment opportunities.
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