GE To Build 1000 Trains For Sprawling India Transportation System

India Railways

General Electric has landed a $2.6 billion contract to build 1,000 diesel locomotives for India.

The company will build a $200 million manufacturing facility in Bihar, the country’s third largest city.

The 11-year deal will also see the company form a joint partner ship with Indian Railways.

“This infrastructure project is further evidence of India’s position as a growth engine for Asia,” GE CEO Jeff Immelt said in a statement. “It is a major advancement and milestone for India and for GE.”

India’s 162-year-old rail system included 40,000 miles of track which is used by 11,000 trains on a daily basis. More than 1.3 million people work for Indian Railways.

Tens of thousands of people are transported by the rail system every day and the company is a prime mover of commercial goods.

The company has been plagued in recent years by budget shortfalls and inefficient trains. The Indian government currently subsidizes tickets aboard India Railways.

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Prime Minister Narendra Modi has made the rail system a primary sticking point in his move to improve the country.

Written by Lane Hanson

Lane Hanson

Lane Hanson is BusinessPundit's Economy Editor. He reports on major changes in the US and Global Economies.