India’s next export frontier: why the country should start exporting trains

India today manufactures almost every type of railway rolling stock — locomotives, coaches, wagons, metro cars and modern trainsets — in large numbers and at competitive cost. Over decades, the railway manufacturing ecosystem has matured through dedicated Production Units of Indian Railways, PSUs and a large vendor base. Yet, despite this capacity and experience, India remains largely absent from the global market for railway vehicles.

Raj K Mangla

India today manufactures almost every type of railway rolling stock — locomotives, coaches, wagons, metro cars and modern trainsets — in large numbers and at competitive cost. Over decades, the railway manufacturing ecosystem has matured through dedicated Production Units of Indian Railways, PSUs and a large vendor base. Yet, despite this capacity and experience, India remains largely absent from the global market for railway vehicles.

This paradox deserves attention. At a time when the country is aiming to expand its manufacturing exports and position itself as a reliable industrial partner for developing economies, Railway Rolling stocks present a major untapped opportunity.

Across Asia, Africa and Latin America, countries are rapidly expanding rail networks to address urbanisation, energy security and congestion. Many of these nations face the same constraints India faced in earlier decades- limited capital, difficult climatic conditions, heavy passenger loads and mixed-traffic operations. They require reliable and economical solutions rather than the most technologically extravagant ones. This is precisely the segment where India’s experience is most relevant.

Historically, the global railway supply industry has been dominated by a small group of large multinational corporations. Their products are technologically sophisticated but often expensive and maintenance-intensive. For high-income markets this model works well, but for developing and middle-income countries the lifecycle cost and not the purchase price becomes the decisive factor. A train that is cheaper to operate and easier to maintain over 30 years can be more valuable than a more advanced train that requires complex support systems.

India’s railway equipment has evolved under demanding operating conditions- high utilisation, temperature extremes, dust, overloading and diverse track quality. Designs have therefore prioritised robustness, maintainability and operating economy. These characteristics match the needs of emerging railway networks worldwide. In other words, India’s rolling stock is naturally suited to the “Global South” market segment.