This paper provides an overview of the Indian Railways and the FDI inflow in railway sector and its impact on GDP and Indian Railways before and after Make in India initiative. It shows that Indian railways need FDI in order to compete with the other modes of transport like airways, road and water ways. There is a huge difference in the growth of both overall GDP of the economy and the growth of Indian railways before and after Make in India initiative. Indian Railways (IR) is a great national asset. A single transport network that connects far flung areas of the country. It is one of the largest transportation and logistics networks of the world which runs 19, 000 trains. It runs 12, 000 trains to carry over 23 million passengers per day connecting about 8, 000 stations spread across the sub-continent. The paper studies the investment inflows in railways pre and post Make in India campaign and the growth of Indian railways.