Highlighting the sector’s potential, Chowdhary emphasised that the PLI scheme could drive higher revenue for the government through increased GST collections and industry growth, similar to its success in consumer electronics and other sectors.
Chowdhary’s remarks come at a time when industry leaders are keenly awaiting the Union Budget 2025, with expectations of continued infrastructure investments and policy support. “We expect a larger infrastructure spend,” he said, stressing that industry expansion is directly linked to the government’s budgetary allocation. If this momentum continues, he affirmed, companies like Titagarh Rail Systems would pursue further capital expenditure and capacity expansion.
Discussing the freight segment, Chowdhary highlighted the government’s ambitious target of achieving 3 billion tonnes of freight loading by 2030—almost double the current levels. He noted that substantial investments in track capacity, rolling stock, and signalling would be necessary to meet this goal, adding that initiatives under the Gati Shakti program have already helped improve logistics efficiency.
On the passenger side, Chowdhary pointed out the growing aspirations of Indian travellers, citing the success of the Vande Bharat trains and upcoming sleeper versions. “The Indian Railways have lived up to the expectations of a modern, safe transport system,” he said, expressing confidence that the momentum will continue with new developments, including the bullet train project.
Addressing broader industry concerns, Chowdhary stated that while GST-related issues in the railway sector have largely been resolved, corporate tax rationalisation remains a common demand across industries. He also lauded the government’s Atmanirbhar Bharat initiative, particularly its efforts to transform India from a net importer to a net exporter of railway wheels through strategic projects.
Below is the verbatim transcript of the interview.
Q: What do you think should be the focus of the Union Budget when it comes to the railway sector? What’s topping your wish list at this point?
Chowdhary: The railways have been a focus sector for the government, both in terms of freight and in terms of passengers. In freight, the railways, thanks to the Gati Shakti programme and also the overall target of the government to reduce the cost of logistics as a percentage of the GDP, there have been a lot of investments that have been made over the last few years in increasing the track capacity, increasing the rolling stock, the signalling and all of that. So, we do expect and we hope that this is something that will continue.
The railways have set for themselves a very ambitious target of 3 billion tonnes of freight loading by the year 2030, which means pretty much doubling from where they were last year. And that’s not an easy target to achieve, but not an impossible target to achieve as well. But it will require substantial investments.
On the passenger side, the aspirations of the new India, the Viksit Bharat are quite clear. The way the Vande Bharat has met with success, the way it’s been applauded by the cross-section of the society and of the population of the country, it’s very evident that the people of India are demanding safe, modern passenger transport on rail. And the Indian railways have actually lived up to that expectation. We have seen the Vande Bharat sleeper being a success, we are now seeing the new versions of Vande Bharat sleeper that will be done by even our company. So, all of this will continue, plus the bullet train. So, I believe that this momentum will continue.
Q: When it comes to the deployment of more private capex, what in the budget will encourage you to invest more? What is that headline that you are looking for from Finance Minister Nirmala Sitharaman on the 1st of February?
Chowdhary: We expect a larger infrastructure spend because, particularly industry like ours is completely dependent upon how much is the infrastructure budget allocation by the government is in order to grow the overall size of the railway. If that momentum continues, we would definitely go for further capex and capacity expansions.
Q: When it comes to ease of doing business, ease of taxation, greater export push from India, what are some of the asks? Because over the last few weeks, through industry consultations, we’ve learned that the industry has been seeking GST rate rationalisation, simplification of taxation, ease of doing business, the next phase of reforms. So, what would be the priority areas which could really help companies like yours boost growth?
Chowdhary: In our sector, the GST was a problem many years ago when it was launched because we had inverted rate of duties, but now we don’t have a problem. Those things have already been taken care of. Of course, it’s been a common demand of the industry in terms of the corporate taxation rates and all of that. So that is nothing which is specific to our industry. That is a common industrial request which is there with the government.
For boosting exports, I would like to mention that the government has really done a lot for Atmanirbhar Bharat and Make in India for the World, whether it is the wheel project that has been approved by the railways, which we are setting up in partnership with Ramakrishna Forging, which will make India as a net exporter from a net importer of wheels, for example. But we do believe that the railway sector, is a fit candidate for some kind of a PLI. We have seen tremendous success in the consumer electronics sector, in many other sectors which have paid the government many times over for the PLI that has been given by the government. We also believe that the railway sector can really pay the government in terms of higher revenue on GST etc, if some support for PLI is given to our sector.
