Bullet trains in India soon! Do we really need them?

With more feasibility studies getting a go-ahead from the Ministry of Railways, India is not far away from the sight of bullet trains running in the country. India’s first bullet train project is a work in progress and it is being executed by the National High Speed Rail Corporation Limited.

While the relevance of bullet trains has been an age-old debate in India, let us find out what the supporters and opponents have to say in their arguments. A topic of debate of late, it might appear as a group discussion topic during your admission or placement interviews.

Supporters

The introduction of bullet trains in India is a hallmark of willingness to become one of the most technologically advanced countries. The move will help in bringing FDI to India as against the high flow of FII. More FDI than FII will help to create stable foreign investment which will lead to value addition.
The Indo Japan deal for bullet trains has been beneficial for India on the foreign exchange side. Japan is investing close to 80 per cent of the finance in the project. The nominal interest rate of 0.1 per cent benefits both the countries and serves to strengthen the bond between the two.
Bullet trains will reduce the travel time, improve connectivity and comfort and thereby eliminate regional differences. They could thus prove to be an important means of transportation for long-duration journeys for the middle-class population of the country.
The project is being opposed on the basis of high costs, however, similar objections were raised during the introduction of telecom in India. In reality, as the industry expanded and the demand increased, it became a viable business (ignoring the fierce internal competition) and the prices went down outrageously.

Opponents

We are adopting the technology that is obsolete in Japan as they will only be providing the technology to India after a span of 15 years. Additionally, it will make India dependent.
Given the deplorable condition of Indian Railways, the cost of bullet trains project should be invested to improvise the present railway system which is used extensively by middle-income class and lower-income class more extensively. The equity angle makes it a more deserving case, considering the rampant rail accidents in India.
Bullet trains being as perceived as status symbols are a hoax as only a few high-income countries have such trains.
Many economists have analysed that in the condition of rupee falling in the international market, the project costs would be exorbitant, making the effective interest rate higher than what is claimed in the contract.
The bullet train’s fare is estimated to be INR 4000-5000 which does not look like a very great idea financially as even the fare of airlines is as low as INR 2000.

Concluding remarks

India has one of the largest railways in the world and the introduction of bullet trains in the country will undeniably help the country. But it is only with the help of feasibility studies that we will be able to better analyse whether or not its benefits outweigh the costs. Until then, think about the subject, frame informed opinions and let us know what you think about the topic in the comments below.