India invests heavily in railway infrastructure and manufacturing

India is undergoing significant railway infrastructure development through major investments in manufacturing and capacity expansion.

A joint venture between Alstom and Indian Railways, Madhepura Electric Locomotive Private Limited (MELPL), has generated approximately 60,000 crore rupees ($9 billion) in economic output between 2020 and 2026. The project focuses on high-tech electric locomotive manufacturing with a localization rate of approximately 90%. In Bihar’s Madhepura district, the facility contributes nearly 1% of the state’s 2024 GST collection and accounts for roughly 4.6% of the region's gross regional domestic product.

Separately, Eastern Railway has announced a 12,000 crore rupee investment to expand route capacity over the next four to five years. Of this total, 10,000 crore rupees is allocated to 563 km of line expansion, while 2,000 crore rupees will fund 10 bypass projects. The expansion aims to reduce logistics costs, streamline supply chains, and improve manufacturing competitiveness.