The Indian railways are the backbone of the transportation industry, witnessing a staggering amount of passengers daily. India has the fourth largest railway system in the world. Foreign Direct Investment will help squeeze out the growth potential of the Indian railway sector.
A 100 percent FDI is allowed for the railway infrastructure under the automatic route. Foreign investment will lead to an improved infrastructure leading to increased productivity and customer satisfaction. This inflow of foreign investors will bring a gush of technology into India.
Foreign investment in the railway sector can drastically change the face of Indian Railways with an inflow of technology and capital. There is immense room for development in the country’s railway system and a foreign investment can efficiently bridge the gap between the current scenario and technological advancement.