§1How big it is
Indian Railways produced 1,674 locomotives and 6,677 LHB coaches in FY 2025-26
PIB (Ministry of Railways): Record freight, passenger services and self reliance in FY 2025-26Freight loading reached 1,670 million tonnes in FY 2025-26
PIB (Ministry of Railways): Record freight, passenger services and self reliance in FY 2025-26Record production of 1,681 locomotives in FY 2024-25: Chittaranjan 700, Banaras 477, Patiala 304, and 100 each at Madhepura and Marhowrah
PIB (Ministry of Railways): India produces 1,681 locomotives in FY 2024-25Jan 2025 to Nov 2025 wagon production was 33,703
PIB: Ministry of Railways Year End Review 2025Marhowra diesel locomotive factory (PPP with Wabtec) has secured USD 400 million in export orders for 150 locomotives to Guinea; around 65% of components are sourced within India
PIB: Ministry of Railways Year End Review 202599.2% of the Broad Gauge network has been electrified
PIB: Ministry of Railways Year End Review 2025
§2Ways to get started
- Machined components, fasteners and rubber parts for coach and wagon makers
- Coach interior items: seats, berths, panels, LED lighting
- Electrical and signalling cable harnesses
- Track maintenance and station works sub-contracting
- On-board and station catering / housekeeping contracts
§3Hubs and clusters
- Chittaranjan Locomotive Works (West Bengal) (PIB 2117830)
- Banaras Locomotive Works, Varanasi (Uttar Pradesh) (PIB 2117830)
- Patiala Locomotive Works (Punjab) (PIB 2117830)
- Madhepura electric loco factory and Marhowra diesel loco factory (Bihar) (PIB 2117830; Year End Review 2025)
- ICF Chennai (Tamil Nadu) - coach production (Year End Review 2025)
- Dahod electric freight locomotive facility (Gujarat) (Year End Review 2025)
§4Licences and registration
- RDSO vendor approval for listed safety / critical items
- Vendor registration on IREPS (Indian Railways e-procurement) and with the buying production unit / zone
- GeM seller registration for common items
- ISO 9001 / IRIS quality certification as asked in tender
- Udyam Registration (MSME) - free, online, PAN + Aadhaar based
- GST registration (mandatory above turnover threshold or for inter-state supply)
- Shops & Establishments registration or Factory Licence (Factories Act) depending on set-up
- State Pollution Control Board Consent to Establish / Operate per CPCB 2025 Red/Orange/Green/White/Blue category (White exempt)
- IEC - Importer Exporter Code from DGFT (only if importing or exporting)
§5Regulators
- Ministry of Railways / Railway Board
- RDSO (Research Designs and Standards Organisation) - specifications and vendor approval for safety items
- Commission of Railway Safety
- Production units and zonal railways - their own vendor registration
§6Government help
- Public Procurement (Preference to Make in India) Order 2017 - local-content preference in railway tenders
- PPP manufacturing (Madhepura, Marhowra) and Gati Shakti cargo terminals (Ministry of Railways)
- MSME procurement policy - 25% annual procurement target from MSEs by central PSUs and departments
- Cross-sector schemes: Udyam-linked MSME benefits, PMEGP, CGTMSE credit guarantee, Stand-Up India, Startup India (DPIIT recognition), RoDTEP / duty drawback and Export Promotion Mission for exporters
§7For exports
- EEPC India (railway equipment)
- RITES Ltd (Ministry of Railways PSU) - rolling stock export and consultancy
- DGFT
§8Pros and cons
Merits
- Very large, steady buyer: 1,674 locomotives and 6,677 LHB coaches made in FY 2025-26 [PIB 2248962]
- Wagon output was 33,703 from Jan to Nov 2025 - big component demand [PIB YER 2025]
- Export orders have started (USD 400 million for 150 locomotives to Guinea) [PIB YER 2025]
Demerits
- RDSO vendor approval for safety items is slow and strict
- Almost all demand is from one buyer through tenders - price pressure and payment cycles
- Lowest-bid tendering leaves thin margins for small vendors
- Production is concentrated in government production units