India sees rising exports of metro coaches, locomotives: Official

India's railway sector is experiencing a boom in exports of metro coaches, locomotives, and engineering services. An official attributes this to a growing manufacturing base, private investment, and beneficial free trade agreements (FTAs).

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 (Traffic Commercial), Ministry of Railways, told ANI on 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.

The Broader Railway Ecosystem

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.

FTAs to Boost Investment and Exports

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.

Domestic Reforms in Freight Structure

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.

Investment Critical for Economic Growth

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)

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