Southeast Asia's third-largest economy eyes exports boost from India's $31B railway inves…

Thailand expects its machinery, electrical equipment and cable exporters to benefit from India's record US$30.92 billion railway investment program for 2026–27.

India might have demand for specialized construction machinery, electrical machinery, wires and cables, safety equipment, industrial materials and technologies used in railway construction that can be sourced from Thailand, the Thai Trade Center in Mumbai said in a report last week, according to The Nation Thailand.

Opportunities could also arise in construction supply chains, system installation and maintenance, depending on actual purchasing demand, contract terms and Indian technical and safety requirements, it added.

India’s railway investment allocation covers a wide network, including the Mumbai–Ahmedabad high-speed line. As of April 2026, India had approved 514 railway development projects covering about 40,000 kilometers, according to India’s Ministry of Railways.

However, Japanese government loans for the Mumbai–Ahmedabad high-speed rail project carry funding-linked procurement conditions, known as tied procurement, according to the Embassy of Japan in India. As a result, progress on the railway does not automatically create purchasing opportunities for Thai suppliers.

Contracts for the line’s signaling and train control systems, telecommunications and operations control center have already been awarded to a consortium involving India’s Dineshchandra R. Agrawal Infracon and Germany’s Siemens.

The Thai trade office also cited competition from manufacturers in India, Japan and other countries, as well as import duties and freight costs that could reduce the competitiveness of Thai products.

Thailand exported about $1.43 billion worth of electrical machinery and equipment to India under Harmonized System Chapter 85 in 2025, up 7.9% from the previous year, according to trade figures cited by the trade office.

The trade office sees Thailand’s existing electrical and infrastructure-related exports as a base for further expansion in India. Businesses would still need to assess individual railway contractors’ and buyers’ requirements before pursuing supply opportunities.

In Southeast Asia, Thailand was the third largest economy in nominal GDP last year, behind Indonesia and Singapore, according to the World Bank.