Indian Railways to Launch Sandbox Policy to Boost Startup Innovation

June 2, 2025

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In a significant move to foster innovation within the transportation sector, Indian Railways is set to introduce a sandbox policy aimed at encouraging startups to develop and test new technologies in a controlled environment.

Announced by Union Minister Ashwini Vaishnaw at the Confederation of Indian Industry (CII) Annual Business Summit, this initiative builds upon the existing ‘Startups for Railways’ program, which has already seen substantial engagement from the startup community.

A Controlled Environment for Innovation

The proposed sandbox will serve as a safe and regulated space where startups can trial innovative solutions without the immediate pressures of full-scale deployment. This approach allows for the identification and mitigation of potential issues in a contained setting before broader implementation.

Minister Vaishnaw highlighted that the policy is expected to be finalized within the next two months, providing a structured pathway for startups to contribute to the modernization of Indian Railways.

Building on Existing Initiatives

This policy is an extension of the ‘Startups for Railways’ initiative launched in June 2022, which has already engaged over 1,250 entities, including startups, individual innovators, and research organizations.

Under this program, Indian Railways has awarded 23 projects valued at approximately ₹43.87 crore, focusing on areas such as rail stress monitoring, broken rail detection, and advanced fire/smoke detection systems.

The sandbox policy aims to streamline these efforts by providing a more structured and supportive framework for innovation.

By introducing the sandbox policy, Indian Railways demonstrates its commitment to integrating cutting-edge technology into its operations, enhancing safety, efficiency, and passenger experience.

This initiative not only supports the startup ecosystem but also aligns with India’s broader goals of digital transformation and self-reliance in critical infrastructure sectors.