• Member
• August 17, 2022

IMPERATIVES OF EXPORT ORIENTATION IN RAILWAY SECTOR

 

There exists a significant global opportunity for railway equipment, rolling stock and services. The  current market volume for railway products, equipment and services is around EUR 162 billion per year and is said to be growing at a rate of 3.4 percent per annum. Modest share (5%) of the market  is  significant  Rs. 50000 crores. Potential to  make significant contribution to GDP. Significant part  of  required  technology is available indigenously. Export orientation will help improve both top line and the bottom line of Indian Railways  ,as the   fixed costs shall be apportioned over larger volume. Making   for world  markets will improve quality  of   services  within India. Indian Railways has a large infrastructure and support system in the country that delivers products and services for sustaining the operations.  At present it is  focused in meeting the traffic requirements within the country.   Indian Railways has a significant presence as a purchaser in this market. However, as provider of railway equipment and services it is a marginal player. The scale of manufacturing and services of Indian Railways can be leveraged to enable it to become a major player in the global railway equipment, rolling stock and services market.