India’s metro rail sector has witnessed significant growth over the past decade, with operational metro routes expanding nearly fivefold. India’s operational metro network has grown from 248 km across five cities in 2014 to 1,150 km across 26 cities by mid-2026. Union Budget 2026-27 reinforced this momentum with an allocation of Rs 309.4 billion for the sector, including Rs 22 billion earmarked specifically for the National Capital Region Transport Corporation (NCRTC).
The next growth phase will not be defined by network expansion alone, as metro systems are increasingly being shaped as integrated mobility ecosystems to enable seamless passenger journeys. Meanwhile, technology is transforming the way these networks are operated, maintained and experienced, with artificial intelligence (AI), predictive analytics, IoT and advanced signalling becoming integral to improving reliability, safety and capacity. The sector is also witnessing greater localisation of rolling stock and equipment, as well as a stronger focus on non-fare revenues, transit-oriented development (TOD) and asset monetisation to strengthen financial stability. Sustainability is also emerging as a key defining priority. A look at the key trends shaping the sector…
Building a digital nervous system
Digitalisation in Indian metros began with modern ticketing tools such as QR-code tickets, mobile applications, smart cards and automatic fare collection gates. Further, technology is being integrated in the operational phase. The increasing use of AI, IoT sensors, data analytics and digital asset management is aimed at identifying a failing component before it breaks down, rather than repairing it after the incident. This marks a shift from scheduled maintenance towards predictive maintenance, leading to fewer breakdowns, less downtime and longer asset life.
In December 2025, Mumbai Metro adopted an AI-based wheel profile measurement system (AWPMS) supplied by Intelli Rail on Lines 2A and 7. Sensors, lasers and cameras capture wheel parameters, provide continuous diagnostic insights, detect wheel damage and recommend repair and replacement. AWPMS also facilitates condition-based maintenance and improves asset reliability.
Passenger-facing services are also becoming increasingly sophisticated. For instance, the Delhi Rail Metro Corporation’s (DMRC) AI-enabled chatbot, Chetna, offers round-the-clock digital assistance, replacing long queues at help desks. Kochi Metro has pursued a comparable strategy, with QR tickets, National Common Mobility Card (NCMC)-enabled cards and video analytics to monitor crowd density and flag intrusions. Similarly, Bengaluru Metro has deployed AI-enabled CCTV surveillance at select stations for real-time threat identification.
The next stage of advancement will likely involve predictive crowd management, personalised passenger information, real-time disruption management and integrated journey planning. There is scope for metro systems to further evolve as unified and data-driven operations centres with a single vantage point from which information on rolling stock, signalling, stations, power systems and passenger flows can be analysed together, rather than in isolation.
Driverless trains become mainstream
Automation has moved from demonstration projects to routine operation. Delhi Metro’s Magenta and Pink Lines already have unattended train operations, while newer corridors in Bengaluru and Chennai are being designed or equipped for comparable levels of automation. Bengaluru’s Yellow Line went a step ahead, introducing driverless train sets that are entirely made in India.
Meanwhile, advanced signalling is progressing with the increasing adoption of communication-based train control, automatic train operation and modern telecommunications systems to reduce headway, expand capacity and improve safety. The next wave of metro investment will not be confined to new lines. A considerable share will instead go towards extracting greater capacity from the lines already in service, through signalling upgrades, longer trains and more efficient fleet utilisation.
Make in India
India is increasingly moving from importing metro technology towards localisation. This is supported by India’s metro policy that aims to improve interoperability, encourage domestic manufacturing, substitute imports and reduce project costs. The current policy rules require that at least 75 per cent of the tendered rolling stock and 25 per cent of key equipment and subsystems must be manufactured in India. Moreover, the Enhancement of Construction and Infrastructure Equipment (CIE) scheme has been proposed in Union Budget 2026-27 for enhancing domestic production. This will cover a wide range of CIE, from tunnel boring machines to firefighting equipment and lifts for metro projects and high-altitude road construction equipment.
Bengaluru’s indigenous driverless trainsets on the Yellow Line, and domestically manufactured driverless trains under Delhi Metro Phase IV present early proof that this ambition extends beyond policy documents. Companies such as Titagarh Rail Systems, BEML and Alstom India now operate domestic production facilities substantial enough that India is beginning to resemble not merely a buyer of rolling stock but a prospective exporter of it. The ambition advanced further in April 2026, when BEML and DMRC entered into a strategic alliance to collaborate on metro projects – an agreement that extends beyond local rolling stock manufacturing to expansion of the global footprint by supplying metro rolling stock to other countries.
Looking beyond the farebox for revenue generation
Every metro system eventually confronts the same structural problem of high costs associated with building and operating a rail network, and ticket revenue alone rarely covers this cost. Metro operators are increasingly focusing on non-fare revenue from advertising, commercial leasing of station and train space, parking, kiosks and property monetisation, as one of the most powerful levers available to them.
Interestingly, Haryana’s metro saw non-fare revenue rise by 108 per cent in 2025-26 (as of January 2026). This is driven largely by more effective monetisation of station space, commercial activity and advertising, marking a shift that has helped move Rapid Metro’s revenue figures into positive territory. Similarly, DMRC derived nearly 45 per cent of its total revenue from non-fare sources in 2024-25.
TOD sits at the centre of this strategy, functioning not only as a revenue stream but as a deliberate instrument of urban planning. The Ministry of Housing and Urban Affairs recently introduced its Regulations for TOD and Charges, 2026 to support affordable housing in the National Capital Territory of Delhi, as part of a broader effort to encourage planned, transit-linked urban growth. Delhi has already implemented the regulations with its first TOD hub at Karkardooma, which brings together metro stations, homes, workplaces and recreational spaces within a single zone.
The implication is that future metro projects are likely to be evaluated on considerably more than ridership. Revenue diversification, asset monetisation, station area development and long-term financial sustainability are all becoming part of the assessment.
Focus on energy efficiency and reducing carbon footprint
Metro systems are large consumers of electricity, with traction accounting for the highest share, alongside air conditioning, lighting, ventilation and escalators, all operating round the clock. This reality has pushed operators to examine their entire energy chain, rather than pursue isolated sustainability initiatives at the margins.
DMRC already draws roughly 35 per cent of its daytime energy requirement from renewable sources, including more than 50 MW of in-house solar capacity and renewable power purchase agreements. Moreover, DMRC is exploring large-scale battery energy storage to address the intermittency of renewable generation and improve the utilisation of green power. Kochi Metro Rail Limited has pursued a parallel course with rooftop and ground-mounted solar installations, regenerative braking, energy-efficient HVAC and LED systems, and SCADA-based monitoring across traction and station consumption. The authority has further set a target to increase the share of renewable energy in its non-traction consumption to 60 per cent.
Going forward, the focus is likely to move towards energy-neutral stations, renewable power procurement, regenerative braking, battery storage and full life cycle carbon accounting.
From metro networks to integrated mobility ecosystems
Traditionally, transport systems such as metros, bus networks and trams were all considered separate. Therefore, the burden of connecting them fell almost entirely on commuters. That arrangement is beginning to change as existing metro networks across many cities shift towards multimodal transportation.
Kochi Metro has assembled one of the country’s most complete multimodal systems, integrating metro rail with electric feeder buses, Kochi Water Metro, non-motorised transport infrastructure and parking facilities. A comparable transformation is unfolding at a regional scale through NCRTC’s Namo Bharat Regional Rapid Transit System (RRTS), which is redefining urban mobility by linking metropolitan centres to their satellite towns. The Delhi-Ghaziabad-Meerut RRTS corridor spanning 82.15 km, which became fully operational in February 2026, connects with three metro lines, two railway stations and four bus terminals, transforming what was once a hard boundary between cities and regions into a single, continuous journey.
The road ahead
These trends indicate that India’s metro sector is headed towards a transformation. Expansion will continue, particularly in large metropolitan areas with high population growth and congestion. This will be further aided by RRTS corridors, which will connect individual city networks into metropolitan systems that extend across municipal boundaries. Automation and AI will continue their migration from passenger-facing conveniences to operational functions, utilising predictive maintenance, train control and other technologies.
Indigenisation will deepen across rolling stock, signalling, communications and digital systems, creating substantial opportunities for domestic technology providers and manufacturers. On the financial front, non-fare revenue, TOD, property development, station commercialisation, advertising and consultancy services will increasingly complement fare revenue.
