New Delhi: The Government of India is preparing to roll out a new Rail Tech policy aimed at boosting domestic manufacturing of advanced railway technology and reducing reliance on foreign suppliers, particularly for high-value components and subsystems.
According to reports, the policy — expected to be announced in the coming weeks — will see the Railway Board offer partial funding support, technical assistance, and access to testing facilities to Indian manufacturers and innovators.
Focus on Import Substitution
The move comes as part of a broader strategy to modernise the rail network while cutting dependence on imported parts.
While India largely manufactures complete trains domestically, it continues to import critical subsystems such as:
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Bogies and wheel sets
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Suspension and braking systems
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Diesel propulsion components
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Signalling systems
In FY 2024–25, India imported railway and tramway locomotives, rolling stock and related equipment worth approximately ₹6,098 crore.
China remains the largest supplier of rolling stock parts, providing bogies, wheel sets and mechanical components. Other major suppliers include Germany, Austria, the Czech Republic, the United States and Japan. European countries such as Germany and Austria are key sources of precision suspension and braking systems, while the US and Japan supply advanced propulsion and signalling technologies.
The new policy is expected to encourage localisation of such high-end components and strengthen indigenous supply chains.
Builds on 2022 Innovation Policy
The upcoming initiative builds upon the Indian Railway Innovation Policy, launched in June 2022, which offered up to ₹1.5 crore in 50:50 grant support to startups and MSMEs for developing railway technology prototypes.
That scheme focused on:
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Safety enhancements
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Efficiency improvements
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Maintenance optimisation
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Assured procurement for successful solutions
Officials indicate the new Rail Tech policy will scale up this approach by promoting closer collaboration between Indian manufacturers, research institutions and public sector production units.
Strong Capex Backing in FY27
The policy push is supported by rising capital allocations. In the FY27 Budget, the government has earmarked ₹52,108 crore for capital expenditure on rolling stock, higher than the ₹50,007 crore allocated in the current financial year.
The funds will support procurement of:
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New locomotives
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Modern coaches, including Vande Bharat Express train sets
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Freight wagons
Railways Minister Ashwini Vaishnaw has also stated that India aims to achieve full self-reliance in developing technologies for the newly announced bullet train corridors.
Strategic Significance
The proposed Rail Tech policy aligns with India’s broader “Make in India” and supply-chain resilience objectives. By encouraging local manufacturing of advanced systems — including propulsion, braking, signalling and rolling stock components — the government aims to:
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Reduce import bills
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Build export-ready capabilities
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Strengthen technological sovereignty
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Accelerate modernisation of the rail network
Industry observers believe that if implemented effectively, the policy could significantly deepen domestic value addition in rolling stock manufacturing and position India as a global hub for rail technology.
