Russia is keen to bolster its railway sector by investing in India’s train manufacturing capabilities, a senior official from the Ministry of Railways revealed on November 26. The country’s interest in setting up manufacturing facilities in India stems from its growing domestic requirements for trains and railway components.

The announcement follows statements made by Kirill Lipa, the CEO of Transmashholding (TMH), Russia's largest railway manufacturing company. Last week, TMH expressed its eagerness to collaborate with India in expanding the production of trains and their components. Russia, which has a long-standing relationship with Indian suppliers, is now looking to build on this partnership by investing in the Indian market, according to Lipa.

"We have huge domestic requirements, and we want to set up manufacturing facilities in India to meet these needs," said a senior Indian government official, confirming Russia’s intentions. The official further explained that Russia is interested in procuring key components from India to fulfill its domestic demand, which could also open doors for supply to the Russian market.

Lipa, speaking from TMH's headquarters in Moscow, underscored the attractiveness of India as an investment destination. “The current interest rate in India is very different from other countries. We are interested and ready to invest in India,” he stated. Lipa also noted that India’s favorable business environment and its growing railway infrastructure make it an ideal location for TMH to establish facilities capable of producing railway components for both domestic and international markets.

TMH has already been involved in the Indian railway sector through its stake in Kinet Railway Solutions, which recently signed a Rs 55,000 crore contract with Indian Railways. The deal will see the production of 1,920 Vande Bharat sleeper coaches, with maintenance contracts lasting for 35 years. Despite Russia's involvement in the project, Lipa emphasized that TMH is not looking to source supplies from Russia for the Vande Bharat project. Instead, the company has sourced components locally or from other countries, reflecting the strength of India's supply chain.

Lipa further reassured stakeholders that the ongoing sanctions against Russia will not have any impact on the Vande Bharat project. He pointed to the long-standing, historically strong relationship between Russian and Indian suppliers, indicating that TMH plans to continue enhancing its collaboration with India.

As India continues to modernize and expand its railway network, Russia's interest in investing and scaling up its manufacturing operations in the country signals growing economic ties between the two nations. With projects like the Vande Bharat coaches already underway, this new partnership has the potential to reshape the landscape of India’s railway industry and offer new opportunities for both nations.

India's railway sector is undergoing a significant transformation, and Russia’s investment could further accelerate its growth, providing both economic and technological benefits in the long term.