Under a three-year partnership, the two companies will focus on the growing need for efficient vertical integration capabilities from engineering to manufacturing on rolling stock interior field.
The development centre will cover primarily engineering activities focused on concept to prototype build.
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"This partnership shall further increase our flexibility and competitiveness. This is also a further step of our engineering ramp-up in India," Alstom Transport Engineering Vice President (Rolling Stock and Components) Pierre Gosset said in a statement.
The Integrated Engineering Solutions (IES) unit of Tech Mahindra delivers solutions across aerospace and defence, automotive, industrial equipment, transportation, consumer products, energy and utilities and hi-tech products.
It has more than 30 exclusive engineering development centers supporting new program launches and over 100 marquee global customers.
"We are delighted to collaborate with Alstom to offer end-to-end engineering services from design to manufacturing. The centre enables us to accelerate joint development of integrated engineering solutions that deliver value to our customers," Tech Mahindra Global Head (IES) Karthikeyan Natarajan said.