The Indian government wants to transform India’s railway network into an interconnector of cities, airports and cities with high-speed connectivity.
It wants to build a network of more than 100,000km of track, with the government investing about $1.5bn (about £1bn) a year for the next decade.
This would allow India to build more rail lines and operate more trains between cities and towns than it can do today.
It will also allow the Indian railways to compete with private companies that have been developing the technology and have already built trains to go between cities.
India’s railways are still largely owned by state-run Indian Railways.
The country’s rail companies, which are state-owned entities, are heavily reliant on state subsidies to keep their assets running.
Many of them have been struggling to compete against private companies and governments that have more resources.
The Indian Rail Service, India’s national rail operator, has been struggling with its own finances, having to raise almost $700m in 2017-18 to meet government funding commitments, the government said in a statement on Thursday.
It said the railway would continue to operate with a small staff and would operate in “a leaner and more efficient manner”.
India’s state-backed railways have been under pressure since a series of accidents, including a string of train derailments in the country’s north, in which more than 500 people died.