From Elephants to AI: Indian Railways Tests New Technologies

Indian Railways is positioning itself as a testing ground for new rail technologies. Startups and research institutions are now invited to pilot solutions aimed at improving safety and operational efficiency across one of the world’s largest rail networks.

Indian Railways launched a new innovation programme at the end of February designed to systematically involve startups, technology firms and research institutions in solving concrete operational and safety challenges. From an economic perspective, the initiative is part of a broader government strategy. India aims to reduce dependence on foreign technologies, strengthen domestic industry and develop solutions that can later be exported.

Innovation as Operational Policy, Not Add-On

The new framework, known as the Rail Tech Policy, is built around a clear model: the railway defines specific problems, allows pilot testing in live operations, and, if successful, opens the path to procurement. Unlike systems where innovation depends on waiting for specific grant calls, the programme operates as a permanently open scheme. Startups and companies can submit proposals on a rolling basis via a central portal.

Funding conditions have also changed. Compared with the 2022 policy, maximum support for prototype development and testing has doubled. Support for scaling successful solutions has more than tripled, reaching the equivalent of hundreds of thousands of euros depending on the technology and scope of deployment.

Importantly, innovation funding is not separated into a special budget line. Financing comes from standard railway investment budgets allocated to areas such as safety, maintenance and digitalisation. The signal is clear: innovation is treated as part of regular operational decision-making, not an optional add-on.

Focused on Practical Problems

The programme prioritises practical, clearly defined use cases rather than abstract technology concepts. Examples include:

• AI-based obstacle detection on tracks, including elephants in protected areas
• Automatic fire detection systems in carriages
• Drones and sensors for detecting rail cracks
• Monitoring of mechanical stress in tracks
• Sensor-based precise freight weighing
• Solar panels on railway vehicles
• Digitalisation of administrative processes such as claims handling

The common objective is improved safety, reduced operating costs and lower reliance on imported technologies.

Under the Rail Tech Policy, Indian Railways invites startups and innovators to join the Rail Tech Portal and contribute technology-driven solutions for transforming railway operations and passenger services. pic.twitter.com/wjquDkuYOG

— Ministry of Railways (@RailMinIndia) February 27, 2026

A Model Worth Watching

The Indian approach stands out for three reasons. First, the state acts as an active technology customer rather than merely a grant provider. Second, there is an emphasis on rapid real-world testing instead of prolonged pilot phases with uncertain follow-up. Third, India openly positions successful solutions as potential export products.

Whether such a model can be replicated in smaller European markets remains an open question. However, in terms of ambition and scale, it is one of the most significant state-led innovation experiments currently underway in the global rail sector.

Sources: PIB, MoneyControl