Brief highlights of the opening up of the Indian railway
infrastructure sector for foreign direct investments.
The year 2014 was a year of many changes. Starting from the new
Government with an absolute mandate (for the first time in the last
three decades), to allowing foreign direct investment (FDI) in the
railway sector (for the first time in the last 200 plus years of
Indian rail history).
FDI has always been prohibited in the Indian railway sector,
which has traditionally been a state owned and operated
infrastructure facility. However, the position changed recently
when the Government decided to open up the crucial sector, which
happens to be India‟s largest commercial establishment, for
private investments and FDI. The Department of Industrial Policy
and Promotion (DIPP) vide its Press Note No. 8 of 2014 dated August
27, 2014 has introduced and permitted FDI in certain sub-sectors of
the railways.
