Indian Rail system is one of the largest systems in the world, which is also one of the very few railway systems in the world generating operating surpluses. Today, Rail has emerged as the main vehicle for India socio-economic development, and also the backbone of its developing economy.

Since its inception, the Indian Rail has served to integrate the fragmented markets and thereby, stimulating the emergence of a modern market economy. It connects industrial production centers with markets and with sources of raw materials and facilitates industrial development and link agricultural production centers with distant markets. It provides rapid, reliable and cost-effective bulk transportation to the energy sector, to move coal from the coal fields to power plants and petroleum products from refineries to consumption centers. It links places, enabling large-scale, rapid and low-cost movement of people across the length and breadth of the country. In the process, the Indian Rail has become a symbol of national integration and a strategic instrument for enhancing our defense preparedness.

Nowadays, in order to further reduce the freight cost and build more modern transport systems in India, the government has placed an emphasis on rail systems construction & upgradation, including rail modernization(high speed), DFC, Metro, and so on. Firstly, the government has opened the market for FDI, allowing the foreign direct investment in this market, as well as permitting the private sectors involved in these projects as PPP initiatives. Second, India has allocated the huge budget from central government and foreign finance organization to support these projects, and is planning to invest about Rs14,000 billion (about $310 billion) in India rail industry from 2011 to 2021. Thirdly, there are so many projects under going and upcoming, such as the attractive 7 high speed corridors, 2 of which are under study stage, and the 6 DFC corridors, also 2 are under construction, moreover, more metro and other rapid transport systems projects are still at their early stage, and will move into the tender phase soon.

Although Indian Railways has developed indigenous capacity for rolling stock manufacture, the rail speed upgrading will require more advanced standards and technologies, which will generate more market opportunities for the leading players home and broad, for example, It aims at a stronger track structure with heavier and metallurgical superior rails, higher horse power, state-of-the-art electric and diesel locomotives, light and comfortable passenger coaches of modular construction with high speed bogies and lighter wagons with improved bogies with higher speeds and better payload. Other steps are solid state inter-locking, block proving by axle counters, centralized electronic interlocking, universal emergency communication and train radi in the areas of signaling and safety, optic fiber and digital microwave in the area of communication, dual voltage three-phase drive Electric Multiple Units for suburban services and Diesel Multiple Units (DMUs) and Main Line Electric Multiple Units (MEMUs) for mass intra-urban and suburban traffic. It is also planning to realize the potential of information technology in all areas of railway management and operations to cut costs and improve efficiency and safety.
 
All of the above has presented a promising and potential rail market for the home and broad players in future.