In a significant step toward railway modernization and digital transformation, Indian Railways has introduced a comprehensive Rail Tech Policy aimed at strengthening startup-led innovation and accelerating the adoption of emerging technologies. The policy focuses on integrating Artificial Intelligence (AI), predictive analytics, smart monitoring systems, automation tools, and advanced digital platforms into railway operations and infrastructure.
Announced by Indian Railways Minister Ashwini Vaishnaw, the initiative seeks to build a structured innovation ecosystem that actively engages startups, MSMEs, research institutions, and technology companies to develop scalable, future-ready solutions for Indian Railways. The broader objective is to position Indian Railways as a technology-driven, innovation-friendly public sector organization aligned with India’s digital economy ambitions.
Rail Tech Policy Inspired by iDEX Model
The Rail Tech Policy has been modelled on the Defence Ministry’s Innovations for Defence Excellence, a flagship program that successfully promotes defence innovation by supporting startups and deep-tech enterprises. Drawing from this framework, the railway policy aims to encourage deep-tech startups, strengthen public-private collaboration, promote Make in India railway technologies, and accelerate AI-powered infrastructure upgrades. It also emphasizes the development of indigenously built rail solutions to enhance technological self-reliance and long-term sectoral growth.
Rail Tech Portal to Streamline Innovation
As part of the new policy framework, the ministry has launched a dedicated Rail Tech Portal, a centralized and fully digital platform that enables startups to submit proposals directly to Indian Railways. The portal replaces the earlier complex, multi-tier approval mechanisms with a simplified, single-stage detailed submission process.
Designed to eliminate procedural bottlenecks, the portal ensures transparency, faster evaluation, and digital tracking of innovation projects. By offering a streamlined and technology-driven interface, it creates an efficient ecosystem for rapid deployment of AI solutions, railway automation technologies, smart safety systems, and infrastructure monitoring tools across railway networks.
Funding Support and Long-Term Procurement Assurance
To incentivize participation from startups and technology innovators, Indian Railways will provide up to 50 percent funding support once a project receives approval. The policy also enhances scale-up grants significantly and doubles the maximum grant allocation for prototype development and field trials. Following successful validation and pilot implementation, the Railways has committed to placing substantial long-term procurement orders.
This funding and procurement model reduces financial risk for early-stage startups and technology firms working on railway safety, automation, predictive maintenance, and smart infrastructure systems, while ensuring sustained commercial viability for successful innovations.
Focus on AI, Predictive Maintenance and Smart Safety Systems
The Rail Tech Policy prioritizes high-impact, technology-driven use cases that improve railway safety, operational efficiency, and asset management. Startups are encouraged to develop AI-based elephant intrusion detection systems to enhance track safety, advanced fire detection systems for railway coaches, and rail stress monitoring solutions to improve track health management.
The initiative also promotes AI-powered coach cleaning and monitoring systems, smart track inspection technologies, and predictive maintenance tools capable of analyzing electrical parameters in overhead equipment to anticipate failures before they occur. Such predictive analytics solutions are expected to minimize service disruptions, reduce maintenance costs, and significantly enhance railway safety standards.
A key objective of the Rail Tech Policy is to move away from traditional procurement practices that relied heavily on rigid vendor specifications. Instead, the new framework emphasizes outcome-based innovation, agile testing and validation, and faster technology adoption. This shift represents a structural transformation in how Indian Railways evaluates, selects, and scales emerging technologies, fostering a more open and collaborative innovation ecosystem.
AI-Enabled Digital Transformation of Railway Claims Tribunal
Alongside the Rail Tech Policy, the ministry has also announced the complete digitisation of the Railway Claims Tribunal through an AI-powered e-RCT platform. The new digital system will facilitate online filing of claims, end-to-end digital case processing, automated workflow management, and AI-assisted adjudication support.
This reform aligns with India’s broader digital governance and smart administration goals, enhancing transparency, reducing delays, and improving citizen service delivery within the railway ecosystem.
The Rail Tech Policy opens significant opportunities for AI startups, IoT and sensor technology companies, deep-tech innovators, railway infrastructure solution providers, and predictive analytics firms. With funding support, streamlined approvals, and long-term procurement commitments, Indian Railways is positioning itself as a major innovation partner within India’s expanding startup ecosystem.
By integrating AI-driven safety systems, predictive maintenance technologies, automation tools, and digital governance platforms, Indian Railways is accelerating its transition into a globally competitive, technology-enabled transport network capable of supporting India’s long-term economic growth and infrastructure modernization goals.
