India's railway exports and private investment surge; FTAs open opportunities: Railways Ministry official
By Kaushal Verma, New Delhi, July 8
India is witnessing growing exports of metro coaches, locomotives and railway engineering services, driven by the expanding capabilities of the country's railway manufacturing ecosystem, rising private sector participation and free trade agreements, Surendra Ahirwar, Executive Director, Ministry of Railways, toldon Wednesday.
"We have seen export also of the metro coaches and other locomotives and we are having lots of engineering contracts. So we are exporting the engineering services. The engineering exports are constituted majorly by the railway sector. So that's been a good activity there and a lot of private investment, private economic activity related to the railways is happening in Indian markets," Ahirwar told ANI.
His remarks came while talking to ANI on the sidelines of a seminar on Investment Economics in India: Manufacturing, FDI, and Industrial Transformation organised by FICCI.
Explaining the broader railway ecosystem, Ahirwar said the sector extends beyond the Ministry of Railways and includes industries that supply infrastructure, technology, raw materials and other inputs required for railway transportation.
"There are two components. One is the Indian Railways, which is the Ministry of Railways or the government as such into the railways sector. There is another beyond the Ministry of Railways, which we can call the railway sector," he said.
He further added that the railway sector includes those industries which are feeding into the railways, whether for infrastructure development, supply of technology, raw materials or other inputs which help us in creating transport services.
Asked whether exports would grow in FY27, Ahirwar declined to make a forecast but expressed optimism over the opportunities created by FTAs.
"We can be optimistic of growth for sure because the FTAs definitely open lots of opportunities. However, it depends on the private sector and the industry to avail those opportunities. The government will not be doing the trade. The government can only create the situation through FTAs and greater collaboration with countries. The actual execution of the FTAs has to happen through proactive action by the industry," he said.
Ahirwar said the growth of this wider railway ecosystem has encouraged private investment and economic activity, enabling Indian companies to serve both domestic and international markets.
On India's trade outlook, he said recently concluded new-generation Free Trade Agreements (FTAs) are expected to create fresh opportunities by promoting investment and integrating India more closely with global supply chains.
"The government has been doing everything and recently we have been entering into what I call the new-age FTAs. Each FTA is not just a trade agreement. It is also an agreement for investment, an agreement for integration with supply chains. It is an integration of economies, especially the Indian economy with the global supply chain ecosystem. This is going to help not only investment but also economic development," he said.
Highlighting domestic reforms, Ahirwar said the Railways has fundamentally changed the country's freight rate structure after nearly seven decades, receiving an encouraging response from industry.
"We have changed the fundamental structure of freight rates in the country after almost 70 years. It has evoked a very positive response from the industry, and in the areas where we have already reformed the freight structure, we have registered growth of up to 170-180 per cent. I am sure this change will help us attain the desired modal shift to rail and enhance freight loading by the Railways," he said.
Ahirwar also stressed that investment remains critical for economic growth across manufacturing, services, trade and exports. He said both public and private investment are essential for sustaining economic development, noting that the government is spending around Rs 11 lakh crore annually on development and investment-promoting initiatives.
— ANI
Reader Comments
Interesting perspective from India. As someone who works in global supply chains, I can see the potential. But the real test will be execution - FTAs are only as good as the infrastructure and logistics behind them. The government spending Rs 11 lakh crore is impressive, but private sector needs to see ROI to truly invest.
Good to see Indian Railways thinking beyond just running trains. The ecosystem approach makes sense - we need the entire supply chain to be competitive, not just the ministry. But I wish they'd also focus on passenger experience and safety, not just exports. Still, progress is progress. 👍
The numbers sound promising, but I'm skeptical about the FTAs. India's trade deals have been hit-or-miss in the past. Hope these "new-age FTAs" actually deliver on integration with global supply chains. Also, changing freight rates after 70 years is revolutionary if implemented properly - let's see results on the ground.
As someone who travels by train regularly, I'm happy to see our railways becoming a global player. But I hope the focus on exports doesn't mean neglecting our domestic network - we still have old coaches, delayed trains and safety issues. Balance is key! 🚂🇮🇳
The private investment angle is crucial. India has the engineering talent but needs more manufacturing scale. These FTAs could be a game-changer if Indian companies step up. The 170% growth in reformed freight areas shows what's possible. Exciting times for Indian railways!
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