FDI in railways: The Way Forward
Foreign Direct Investment (FDI) is one of the major sources of funding in the infrastructure and development projects in India. There has been a positive impact on infrastructure and especially urban development sector due to FDI. Enabling the foreign companies to fund for the public sector projects will reduce the burden on the government in terms of financing, construction and management.
In India, Railways play a major role in the connectivity for both people and goods. In the recently announced Railway Budget, the ministry of railways plan to expand and develop Indian Railways making it the largest freight corridor in the world. To achieve the above purpose and also to facilitate various other proposals such as improved connectivity in the Diamond Quadrilateral and ports, FDI will be an important source of funding. So Ministry of Railways is now seeking the approval from the Cabinet for allowing FDI in Indian Railways.
