The model name stands for broad gauge (W), alternating current (A), goods traffic (G) engine, 7th generation (7).

The WAG-7 is one of the most successful locomotives of Indian Railways,[peacock prose] serving freight trains since its introduction in 1990.

The history of WAG-7 begins in the early 1990s with the aim of addressing the shortcomings of the previous WAG-5 class and remove steam locomotives from IR by a target date of 1990.

[3] The WAG-5 though were great successes, had become underpowered to meet the growing demands of the Indian Railways.

Initially, the Indian railways invited tenders to build locomotives to the new specification.