Govt Eyes New Rail Tech Policy to End Foreign Tech Dependence

The government is preparing a new Rail Tech policy aimed at strengthening domestic capabilities in advanced railway technology and equipment manufacturing, as per The Economic Times. The policy is expected to be unveiled in the coming weeks as part of a broader rail modernisation push. 

Policy Focus and Support Framework 

According to the report, the proposed Rail Tech policy will focus on promoting local development and production of high-end railway systems and components. The Railway Board is expected to extend partial funding support, technical guidance and access to testing infrastructure under the framework. 

The plan is aligned with efforts to cut import dependence and build indigenous technology capacity, particularly in critical rail subsystems. It is also intended to deepen collaboration between industry players and research institutions to accelerate innovation in mass transport solutions. 

The new framework follows the Indian Railway Innovation Policy launched in June 2022, which provided up to ₹1.5 crore in 50:50 grant support to startups and smaller firms for prototype development, along with testing access and assured procurement if solutions proved viable and cost-effective. 

Import Dependence and Technology Gaps 

India continues to import significant volumes of railway equipment and subsystems, even though final assembly is often done locally. These imports mainly include locomotive components and rolling stock sub-assemblies rather than complete trains. 

In 2024–25, imports of railway and tramway locomotives, rolling stock and related equipment were valued at about ₹6,098 crore. Key supplier countries include China, Germany, Austria, the Czech Republic and the US. 

China remains the largest source for items such as bogies, wheel sets and mechanical assemblies. Germany and Austria supply high-precision systems including braking and suspension equipment, while the US and Japan provide advanced propulsion and signalling technologies. 

Capex Push Supports Local Ecosystem 

The domestic manufacturing push is being supported by higher railway capital expenditure. In the FY27 Budget, ₹52,108 crore has been allocated for rolling stock capital spending, higher than ₹50,007 crore in the current year. 

The allocation will fund procurement of locomotives, coaches, Vande Bharat train sets and wagons as part of fleet expansion and technology upgrades. The railways ministry has also indicated a long-term goal of achieving self-reliance in upcoming bullet train corridors. 

Read More: Indian Railways Ramps Up Battery and Green Fuel Engine Adoption! 

Conclusion 

The upcoming Rail Tech policy, as reported by Economic Times, is designed to anchor advanced railway technology development within India by combining funding support, testing access and industry collaboration, while reducing reliance on imported systems. 

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