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India Prepares to Export Vande Bharat Express to Overseas Markets

Indian Railways and RITES Ltd are working on a standard-gauge version of the semi-high-speed Vande Bharat Express, aimed at countries with globally adopted track specifications. According to a report by Mint, the state-run engineering consultancy, RITES Ltd, is collaborating with Indian Railways to develop the design for standard-gauge Vande Bharat trains and explore their potential for exports.

Rahul Mithal, chairman and managing director of RITES Ltd, stated that the company is working in close coordination with Indian Railways to develop the design for standard-gauge Vande Bharat trains. Interest has already emerged from neighboring countries, including Bangladesh, Sri Lanka, and Nepal, as well as some markets in Latin America and Africa. African countries, where RITES has expanded consultancy and rolling stock operations, could also become potential buyers.

Standard-Gauge Design Work Underway

Read also: Expert Portfolio Manager Raja Venkatraman Names Top Investment Picks for June 4

The standard-gauge Vande Bharat platform is currently at the design-development stage, with production set to begin once the designs are approved and export orders materialize. RITES has proposed that Indian Railways deploy at least one Vande Bharat rake for trial operations in potential overseas markets to generate buyer interest and help convert discussions into long-term sales contracts.

Delegations from Bangladesh, Sri Lanka, and Nepal have visited India to assess the trains. Indian Railways officials stated that the country could initially export the existing broad-gauge Vande Bharat trains to neighboring countries before the standard-gauge platform is commercially rolled out.

Domestic Rollout Gathers Pace

The export push comes as Indian Railways accelerates domestic deployment of Vande Bharat trains. The national transporter plans to deploy 800 trainsets by 2030 and scale that number to 4,500 by 2047, including sleeper variants in addition to the current chair car models. Earlier this month, the Modern Coach Factory in Raebareli rolled out the 100th Vande Bharat trainset.

Read also: MarketSmith India's 4 June Stock Recommendations

QuarterDomestic DeploymentExport Orders
2023
2024
2025
2026800 trainsets by 2030
2027Scale to 4,500 by 2047

Cost Advantage and Export Potential

A 16-coach Vande Bharat train currently costs around Rs 130-150 crore to manufacture. Railway officials have positioned Vande Bharat trains as part of the government's broader Make in India manufacturing initiative. The cost advantage of Vande Bharat trains could make it a strong contender in any country that is looking at strengthening its intercity travel infrastructure.

RITES Expands Rolling Stock Exports

Alongside Vande Bharat exports, RITES is also expanding its rolling stock export business in Africa and South Asia. The company has completed an order for 10 locomotives for Mozambique and is preparing to begin supplies against an order for 200 rail coaches from Bangladesh. The prototype for the first batch of 20 coaches has already received approval from Dhaka.

Order Book Crosses Rs 9,400 Crore

RITES ended FY26 with an order book of Rs 9,416 crore, of which around Rs 2,100 crore comprised export orders. Rolling stock exports accounted for Rs 1,750 crore of that figure. The company reported FY26 revenue of Rs 2,426 crore. RITES is targeting an order book of more than Rs 10,000 crore in FY27 while aiming to increase revenues further during the fiscal year.

Investor Takeaway

Investors should monitor the potential growth of India's rail exports to emerging markets.

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