Govt planning new Rail Tech policy to cut dependence on foreign suppliers

The government is working on a new Rail Tech policy, which is aimed at boosting local manufacturing of advanced railway technology and equipment, The Economic Times reported.

What's happening?

According to the report, the new Rail Tech policy is likely to be announced in the next few weeks. Under the plan, the Railway Board is expected to offer partial funding, technical help, and access to testing centres.

 

The reported move is part of the government’s efforts to modernise the rail network and reduce dependence on imports, especially from China.

Why it matters

India is still importing a large amount of railway equipment. Most of these imports are not full trains, but parts and sub-systems like locomotive components and rolling stock pieces that are assembled in India. However, it underlines India's reliance on foreign suppliers for key technology.

   

In 2024-25, the country imported railway and tramway locomotives, rolling stock, and related equipment worth about ₹6,098 crore. Some of the top importers of rolling stock parts included China, Austria, the Czech Republic, Germany and the US.

 

China remains the biggest supplier, providing equipment like bogies, wheel sets, and general mechanical parts. According to the data from the World Integrated Trade Solution, India imported 1,475,240 kilograms of rolling stock parts from China, followed by 922,007 kg from Germany, 720,147 kg from the Czech Republic, and 637,992 kg from Austria.

 

Germany and Austria are important sources of high-precision engineering products, especially suspension and braking systems used in modern coaches. Meanwhile, the US and Japan supply advanced technologies such as diesel propulsion components and signalling systems.

 

The new policy aims to reduce dependence on foreign suppliers and build stronger domestic capabilities.

Are there other similar schemes?

The report, citing an official, stated that the policy will give fresh impetus to innovation in mass transport. It is expected to encourage Indian companies to work closely with research institutions.

 

The latest plan follows the earlier Indian Railway Innovation Policy, launched in June 2022. That scheme offered up to ₹1.5 crore in 50:50 grant support to startups and small firms to develop working prototypes. It focused on safety, efficiency, and maintenance, and gave innovators ownership of their ideas, access to safe testing environments, and assured procurement if their solutions proved successful and cost-effective.

Investment push for railways

The government is increasing its spending on railways. In the FY27 Budget, ₹52,108 crore has been allocated for capital expenditure on rolling stock. This exceeds the ₹50,007 crore allocated for the current financial year.

 

The money will be used to buy new locomotives, coaches, including Vande Bharat train sets, and wagons as part of fleet modernisation. Railways minister Ashwini Vaishnaw recently said that India aims to be fully self-reliant in developing the seven newly announced bullet train networks.

The bottom line

The upcoming Rail Tech policy is part of the government's broader strategy to strengthen domestic manufacturing, reduce reliance on foreign parts, and accelerate railway modernisation. It is likely to help the country build advanced rail systems with more technology developed and produced at home.