Urban transportation in India has undergone a transformation over the past decade, facilitating wider connectivity within cities. While the road sector has witnessed significant network expansion, urban rail has added a new dimension to city transportation. In fact, metro or mass rapid transit system (MRTS), regional rapid transit system (RRTS) and other emerging modes have not only helped ease on-road congestion, but have also provided faster and cleaner commuting options. Over the years, the segment has seen an increasing emphasis on sustainability, technology integration and indigenisation, which have further enhanced operational efficiency.
Market overview
Rapid expansion and multilateral sanctions keep the ball rolling
The metro rail network in the country has witnessed robust growth over the decade. The operational network, which spanned around 248 km in 2014, has now expanded to over 1,000 km (including RRTS) across around 25 cities. Region-wise, almost 60 per cent of this length is concentrated in the Delhi National Capital Region and Maharashtra, which account for around 450 km and over 170 km respectively. Moreover, the pace at which new lines are being commissioned has increased around nine times over the years, from around 0.68 km per month prior to 2014 to around 6 km a month as per recent figures.
Metro projects leverage various sources of funding, ranging from central and state governments to multilateral banks and private global players. The budget allocation for 2025-26 has seen a positive step-up, with an allocation of Rs 348.07 billion to the segment, almost six times more than the budget in 2013-14. Over the past year, notable moves by international players have reinstated their interest in funding metro projects in India. For example, in June 2025, the Asian Development Bank announced a five-year initiative to direct up to $10 billion, including third-party capital, towards urban transformation in India, including the expansion of metro networks, development of new RRTS corridors and enhancement of urban infrastructure services. Meanwhile, KfW Germany signed a loan agreement worth Rs 30.45 billion under Phase II of the Bengaluru Metro Rail Project in December 2024.
Modern modes of transit gain traction
While MRTS dominates the urban rail segment, RRTS, Metroneo, MetroLite and the water metro are also making headway. The Namo Bharat RRTS corridor, being implemented by the National Capital Regional Transport Corporation (NCRTC), aims to connect key regional centres with main hubs. The trains are designed for a maximum speed of 180 km per hour and operate at a speed of 160 km per hour.
Moreover, the water metro project, currently operational in Kochi, Kerala, aims to connect 10 islands through a route spanning over 78 km. The Mattancherry and Willingdon Island terminals were recently inaugurated, with the total number of operational terminals now at 12. A route connecting the high court and Mattancherry terminals via Willingdon Island has also become operational. Water-based transit is also set to come up at various other cities in the country, with the Ministry of Ports, Shipping and Waterways having provided its approval for the conducting of technical feasibility studies in 24 cities.
Focus on rolling stock
The rapid expansion of the metro rail network has been accompanied by the subsequent rise in rolling stock, creating opportunities for indigenisation. In line with the Make in India initiative, provisions have been made for at least 75 per cent of metro cars and 25 per cent of key equipment to be sourced domestically. In May 2025, BEML flagged off its 2,100th metro coach from its Bengaluru facility. The company will also set up a new rolling stock manufacturing unit at Umeria in Madhya Pradesh, to serve both domestic and international urban mobility and rail projects. Other trends include tapping non-fare revenue through advertising and the roll-out of driverless trains. The Magenta Line of the Delhi Metro is fully capable of unattended train operations, with all trains that operate on the line featuring driverless operations. The Pink Line is also in the process of becoming entirely driverless. Moreover, corridors of the upcoming Delhi Metro Phase IV are also likely to feature driverless trains.
Mapping progress: Uptick in project activity
The past few months have seen the inauguration of several metro rail sections across the country. Bihar’s first metro rail network was inaugurated in Patna on October 6, 2025. The inaugurated section is part of the priority corridor. Further, on October 8, 2025, Phase 2B of the Mumbai Metro Line 3 was inaugurated, marking the completion of the Mumbai Metro Line 3, also known as the Aqua Line. The entire line, incurring a cost of over Rs 372.7 billion, spans 33.5 km across 27 stations. It is entirely underground, with enhanced connectivity to other modes of transport. Moreover, in August 2025, new routes under the Kolkata Metro and the Yellow Line of the Bengaluru Metro were inaugurated.
Further, the urban rail network is set to witness further expansion, with several project approvals in recent months. In August 2025, the union cabinet approved the 11.165 km Phase 1B of the Lucknow Metro Rail Project, which will feature 12 stations. Approvals were also granted for Corridors 2A and 2B of the Pune Metro Project and two corridors under Phase III of the Bengaluru Metro Rail Project, among others.
Modern revamp: Focus on improving station infrastructure
Metro projects across the country are integrating new and advanced technologies, and implementing sustainability initiatives at stations. The use of renewable energy has been a key initiative, with stations installing rooftop solar panels and procuring renewable energy to meet their energy requirements. Efforts are also being integrated to ensure energy efficiency, including the use of regenerative braking, LED systems and responsible energy consumption. Moreover, various metros have been recognised as carbon neutral, and many have also received Indian Green Building Council certifications.
Metro stations also prioritise security and accessibility, featuring CCTV cameras to monitor passenger movement. Efforts are also under way to integrate artificial intelligence (AI) into these systems. Stations also have platform screen doors for safety. For accessibility, ramps, elevators, tactile tiles, audio-visual announcements and staff assistance have been implemented.
Urban rail systems are focusing on increasing the share of non-fare revenue. At stations, non-fare revenue is tapped through retail segments, advertisements, station naming rights, parking, etc. In January 2025, Mumbai Metro Rail Corporation Limited awarded retail commercial space spanning over 130,000 square feet across 27 stations of the Line 3 corridor, expected to generate a non-fare box revenue of Rs 200 million. The Bengaluru Metro also plans to increase its non-fare revenue.
The focus is shifting towards transit-oriented development (TOD) to enhance land use around stations, integrate various modes of transport, improve last-mile connectivity, and develop retail, commercial, residential and real estate spaces. The Ghaziabad Unified Master Plan 2031 has proposed the development of TOD zones and special development areas, including zones along the rapid rail and within 500 metres of the Red and Blue-lines. The 2031 Master Plan of Meerut also features TOD zones. Reportedly, around 3,272 hectares has been set out for it, of which 2,442 hectares would be categorised into seven TOD zones and two special development area zones around the metro and Namo Bharat corridors.
In line with this vision, metro projects are also improving last-mile connectivity through collaborations for electric vehicle charging facilities, feeder buses, taxis and autorickshaws.
Optimising operations: Integrating technologies and smart initiatives
The integration of technologies and digital initiatives has gained momentum in the urban rail segment. On the ticketing and fare collection front, new facilities such as QR code-based ticketing and the National Common Mobility Card have enhanced passenger convenience, reduced queuing at station counters and streamlined operations. Ride-hailing apps such as Uber and Rapido have also added features to book metro tickets through their apps. Further, metro operators have launched apps for ticketing, passenger facilitation and other information related to passenger journeys. The Mumbai One integrated common mobility app, for example, was launched for 11 public transport operators including metros, monorail, suburban rail, and public bus operators. It facilitates mobile ticketing, real-time journey updates and map-based navigation, significantly enhancing passenger convenience.
Technology adoption has also redefined signalling, train control and telecommunication systems. Communications-based train control (CBTC) is widely deployed across metro projects. The system facilitates two-way communication between trains and track equipment. More recently, the Kolkata Metro commissioned the terrestrial trunked radio communication system. Supplied and implemented by Motorola Solutions Private Limited at select lines, the system enhances emergency responses and passenger safety by providing robust coverage through fixed stations, vehicle-mounted units and handheld radios.
Looking ahead
With key approvals for new projects and growing demand for these systems, urban rail network expansion is expected to continue in the next few years. Projects are likely to see the greater integration of technology and AI in construction processes, passenger management, predictive maintenance and traffic projections. Going forward, the segment is expected to play a key role in promoting cleaner and more efficient urban transportation across the country.
Shreya Annie Mathew
