The Indian Railways is set to introduce a new sandbox policy aimed at providing startups with a structured, low-risk environment for testing and refining their technological solutions in a proactive effort to promote innovation and entrepreneurship. Ashwini Vaishnaw, Minister for Railways and Information Technology, announced the upcoming policy at the Confederation of Indian Industry (CII) Annual Business Summit. The initiative is expected to become operational within the next two months and will offer a platform where new ideas can be evaluated in a real-world yet controlled setting.

“This policy will allow any innovative idea to be tested at a small scale in a sandbox setup. If successful, it can then be expanded to a broader implementation,” the minister stated during his address. The core aim of the sandbox is to mitigate legal and regulatory hurdles for startups, allowing them to focus on perfecting their products and services without fear of early-stage compliance risks.

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Built on a Foundation of Past Engagements

The new sandbox model builds on the success of the ‘Startups for Railways’ initiative, which has fostered growing collaboration between Indian Railways and the startup ecosystem over the past 18 months. As of early May 2025, 3,166 entities had registered on the Indian Railways Innovation Portal, including 363 startups. The initiative has also drawn interest from 215 Micro, Small, and Medium Enterprises (MSMEs), 169 research and development (R&D) organisations, and 65 non-governmental organisations (NGOs).

To support these collaborations, Indian Railways has organised 131 workshops and meetings, drawing participation from 1,560 startups and innovators. These engagements have already led to the adoption of new technologies and processes, improving operational efficiency and service quality within the railway system.

Aligned with National Tech Roadmaps

The proposed sandbox is also in line with India’s larger ambitions for technological self-reliance and innovation. Minister Vaishnaw highlighted that India is currently developing 25 indigenous chipsets to boost national cybersecurity. Of these, 13 projects are being led by the Centre for Development of Advanced Computing (C-DAC) in Bengaluru. Additionally, under the IndiaAI Mission, the government plans to expand its artificial intelligence infrastructure by increasing the number of Graphics Processing Units (GPUs) from 18,000 to 32,000, enhancing computational power for AI research and deployment.

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Boosting the Startup Ecosystem in Transportation

This sandbox initiative is expected to significantly impact the startup landscape, especially in sectors like transportation, mobility, and logistics. Startups will now have a defined framework in which to develop and test solutions tailored to the operational demands of Indian Railways—one of the largest railway systems in the world. The policy underscores the government’s strong commitment to innovation-driven modernisation. It also opens new opportunities for startups to play a crucial role in improving safety, efficiency, and customer experience in public transportation.

A Strategic Leap into the Future of Railways

In essence, the Indian Railways sandbox policy is more than just a support mechanism for startups—it’s a strategic investment in the future of railway technology and infrastructure. By bridging innovation and implementation through collaboration, the initiative sets the stage for a smarter, more responsive, and technologically empowered railway system.