Domestic Railway Manufacturing: A Look at India’s Journey So Far and What’s Ahead
Domestic Railway Manufacturing: A Look at India’s Journey So Far and What’s Ahead
Compared to five years ago, around 85% of all signalling system requirements are now met by domestic manufacturing. Given the pace, it won’t be long before the world turns to India for trains

The Indian Railways is reportedly likely to launch a production-linked incentive (PLI) scheme to boost domestic manufacturing of train parts, including wheels, brakes and transmission systems for Linke Hofmann Busch (LHB) and Vande Bharat trains. At present, India imports these items.

A frequently overlooked aspect of the Indian Railways’ transformation in the last decade is the strides India has made in the field of railway manufacturing.

Compared to five years ago, around 85% of all signalling system requirements are now met by domestic manufacturing. In June, India got its largest private rail factory in Telangana. The private rail coach factory has a production capacity of 500 coaches and 50 locomotives per year, with an investment of Rs 1,000 crore. It will develop all types of railway rolling stock, including coaches, train sets, locomotives, metro trains and monorails.

The government also hopes to make railways a carbon-neutral and modernised mode of transport by the end of the decade. There is a concerted effort to populate Indian tracks with semi-high-speed trains, like the Vande Bharat, by 2030. Currently, Vande Bharat trains operate only over short distances as chair cars.

Long distance sleeper coaches are being built in tie-up with foreign partners. French rail company Alstom will manufacture 100 aluminium bodied Vande Bharat sleeper trains. A joint venture between Russia and India is also on track to manufacture 120 Vande Bharat trains. Separately, 80 trains will be manufactured by the Titagarh Wagons and Bharat Heavy Electricals Limited (BHEL) consortium.

Given the pace of domestic manufacturing, it won’t be long before the world turns to India for trains. India has already supplied trains to Mozambique, a country that has bet heavily on Indian trains.

As per the data, the Indian Railway’s 65-year-old Integrated Coach Factory (ICF) has exported 650 railway coaches, shells, and other components to other countries, including Thailand, Burma, Taiwan, the Philippines, Tanzania, Uganda, Vietnam, Nigeria, Bangladesh, Mozambique, Malaysia, Angola, and Sri Lanka.

By 2025-26, India hopes to sell Vande Bharat semi-high-speed trains to countries around the world.

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