The Indian government is set to introduce a new incentive scheme for the railway manufacturing sector as part of the broader 'Make in India' campaign. This initiative under the Production-Linked Incentive (PLI) scheme aims to increase domestic production of railway components, particularly for trains like Vande Bharat and Linke Hofmann Busch (LHB) sets, as well as parts for new-generation trains powered by alternative fuels like hydrogen. The scheme will provide output-linked incentives ranging from 5% to 10% over a three-year period, with an expected total incentive amount of Rs 1,000-1,500 crore. The goal of this initiative is to reduce import dependence in critical industries, enhance self-reliance, and attract foreign manufacturers to invest in India's railway manufacturing sector. While some progress has been made in reducing import dependence, there is still a significant reliance on imported components for new-age trains. Companies like Siemens, Alstom, and Stadler already have a presence in India through joint ventures, and this new scheme is expected to encourage their vendors to establish manufacturing units in the country. By offering incentives to companies producing items such as wheels, brakes, and transmission systems, the government aims to bolster the local production ecosystem and create more opportunities for domestic manufacturing in the railway industry.