The Mumbai-Ahmedabad bullet train project is likely to significantly impact several areas, from attracting more foreign investment to possibly ushering a transformation of Indian Railways. Here is how.
Background–
Prime Minister Narendra Modi and his Japanese counterpart, Shinzo Abe, will be laying the foundation stone for the Mumbai-Ahmedabad bullet train project on 14 September.
In-detail:-
In its size, scale and sweep, this project is probably the single largest foreign direct investment into India since independence. Expected to cost approximately $15 billion (Rs 90,000 crore), it is fully funded by the Japanese through a soft loan at an interest rate of 0.1 per cent per annum.
It has been ensured that repayment of this loan is to begin after 15 years and to be repaid over the next 35 years. What makes this loan arrangement attractive is that even loans from multilateral agencies come with more stringent terms. The low interest rate and extended repayment period have the calculated effect of addressing upfront any potential economic downsides in the project.
Besides this sweet deal, the project has significant geopolitical ramifications. At the outset, it signifies the dynamics of the Indo-Japanese relationship and the confidence Japan has on India in general and the government in particular. This in turn will draw in future investments into India from foreign countries on several such projects.
More importantly, the terms of any investment into India, private or government, will henceforth be benchmarked against the terms of this project. Anyone funding projects in India on interest rates above 0.1 per cent and for a term of less than 50 years will surely raise eyebrows.
What is especially astonishing is that for the first time since independence, one sovereign nation has invested so heavily in India on such favourable terms for the latter and for such extended periods. Obviously, the Japanese have more faith in the Indian economy than probably some of our own economists. The glass ceiling has well and truly been broken.
But that is not all. If the economics and geopolitics of the project bring about the ‘make in India’ angle, the technology transfer along with the ‘make in India’ commitment by the Japanese make the project a possible pivot to the entire Make in India campaign. According to experts, the significant fallout of this project would be on this ambitious national project.
As per the agreement between the two governments, this project has well-defined ‘Make in India’ & ‘transfer of technology’ objectives. Consequently, it is understood that four sub-groups with representatives from the Indian and Japanese industries are closely working to identify potential items and sub-systems to ensure that the project has a significant Make in India component. In this connection, the Indian government and the Railway Ministry are encouraging active interaction between the industries of India and Japan. Industry sources believe that quite a few joint ventures will be formed in the near future to ensure manufacturing within India for the project. A significant impact of this will be a quantum leap in the technology available to Indian Railways apart from the change in work culture.
Left to itself and without the promised transfer of technology, training and ensuring ‘make in India’, this project may well be an aid packaged as investment. It is not, though. India, in her current state of development, requires investment (which includes transfer of technology), not aid. Therefore, in this case, the Japanese have redefined the idea of investment and cooperation.
Readers may recall the car manufacturing revolution ushered in by the Maruti-Suzuki tie-up in India in the early 1980s. In just 30 years, India has emerged as a global giant in automobile manufacturing. Today, it not only manufactures world-class cars but also exports to advanced countries, and some of them are domestic brands competing with the best internationally. Only those who have witnessed the rapid transformation of the Indian automobile industry in the past three decades will appreciate this transformation.
Likewise, the bullet train project is expected to revolutionise the construction sector in India by bringing in new technology and work culture. To absorb the desired cutting-edge technology and train adequate manpower, a world-class High Speed Rail Training Institute is being simultaneously planned and developed in India. Expected to be fully functional by the end of 2020, this institute will train about 4,000-strong staff in the next three years, who will, besides being involved in operations and maintenance of the project, also serve as the backbone for future development of other high-speed corridors in India.
Let us also not forget that Indian Railways has been a fiefdom of successive railway ministers and a grim reminder of the failed socialist economics. The upcoming bullet train is all set to alter the functioning of Indian Railways. Currently, the speed of our trains, its cleanliness, and safety records are abysmal. A transformation requires a cultural transplant. And it is getting it through the introduction of the bullet trains. Hopefully, the cross-fertilisation of ideas with the Japanese will transform this moribund organisation into a world-class unit not too far in the future.
Of course, the usual suspects seek answers to the very same questions that they raised when computers were introduced in the late 1980s. The answer to that came from the ordinary Indian within a decade or so, as India became a superpower in computers. Again, people raised questions about the introduction of mobile phones and termed it elitist. But mobile phones ensured the telecom revolution within a decade or so – what the landlines could not achieve in six decades. Today, we boast of a Digital India dream, thanks to the revolution in this sector. This, again, was possible, thanks to the ability of the ordinary Indian in absorbing new technology. At every turn, Indians have lapped up technology and profited from it.
Hopefully, Indians will embrace the bullet train technology too, which in turn is expected to spur manufacturing in India while simultaneously strengthening the Indo-Japanese relationship.
# Trending Now
Subscribe
Related Posts
- Anonymity: Darknet allows users to communicate and transact with each other anonymously. Users can maintain their privacy and avoid being tracked by law enforcement agencies or other entities.
- Access to Information: The darknet provides access to information and resources that may be otherwise unavailable or censored on the regular internet. This can include political or sensitive information that is not allowed to be disseminated through other channels.
- Freedom of Speech: The darknet can be a platform for free speech, as users are able to express their opinions and ideas without fear of censorship or retribution.
- Secure Communication: Darknet sites are encrypted, which means that communication between users is secure and cannot be intercepted by third parties.
- Illegal Activities: Many darknet sites are associated with illegal activities, such as drug trafficking, weapon sales, and hacking services. Such activities can attract criminals and expose users to serious legal risks.
- Scams: The darknet is a hotbed for scams, with many fake vendors and websites that aim to steal users’ personal information and cryptocurrency. The lack of regulation and oversight on the darknet means that users must be cautious when conducting transactions.
- Security Risks: The use of the darknet can expose users to malware and other security risks, as many sites are not properly secured or monitored. Users may also be vulnerable to hacking or phishing attacks.
- Stigma: The association of the darknet with illegal activities has created a stigma that may deter some users from using it for legitimate purposes.
- Virtual assistants: Siri, Alexa, and Google Assistant are examples of virtual assistants that use natural language processing to understand and respond to users’ queries.
- Recommendation systems: Companies like Netflix and Amazon use AI to recommend movies and products to their users based on their browsing and purchase history.
- Efficiency: AI systems can work continuously without getting tired or making errors, which can save time and resources.
- Personalization: AI can help provide personalized recommendations and experiences for users.
- Automation: AI can automate repetitive and tedious tasks, freeing up time for humans to focus on more complex tasks.
- Job loss: AI has the potential to automate jobs previously performed by humans, leading to job loss and economic disruption.
- Bias: AI systems can be biased due to the data they are trained on, leading to unfair or discriminatory outcomes.
- Safety and privacy concerns: AI systems can pose safety risks if they malfunction or are used maliciously, and can also raise privacy concerns if they collect and use personal data without consent.
Darknet
Definition:
Darknet, also known as dark web or darknet market, refers to the part of the internet that is not indexed or accessible through traditional search engines. It is a network of private and encrypted websites that cannot be accessed through regular web browsers and requires special software and configuration to access.
The darknet is often associated with illegal activities such as drug trafficking, weapon sales, and hacking services, although not all sites on the darknet are illegal.
Examples:
Examples of darknet markets include Silk Road, AlphaBay, and Dream Market, which were all shut down by law enforcement agencies in recent years.
These marketplaces operate similarly to e-commerce websites, with vendors selling various illegal goods and services, such as drugs, counterfeit documents, and hacking tools, and buyers paying with cryptocurrency for their purchases.
Pros :
Cons:
Artificial Intelligence
Definition:
AI, or artificial intelligence, refers to the development of computer systems that can perform tasks that would normally require human intelligence, such as recognizing speech, making decisions, and understanding natural language.
Examples:
Pros :
Cons:
Recent Posts
- Anonymity: Darknet allows users to communicate and transact with each other anonymously. Users can maintain their privacy and avoid being tracked by law enforcement agencies or other entities.
- Access to Information: The darknet provides access to information and resources that may be otherwise unavailable or censored on the regular internet. This can include political or sensitive information that is not allowed to be disseminated through other channels.
- Freedom of Speech: The darknet can be a platform for free speech, as users are able to express their opinions and ideas without fear of censorship or retribution.
- Secure Communication: Darknet sites are encrypted, which means that communication between users is secure and cannot be intercepted by third parties.
- Illegal Activities: Many darknet sites are associated with illegal activities, such as drug trafficking, weapon sales, and hacking services. Such activities can attract criminals and expose users to serious legal risks.
- Scams: The darknet is a hotbed for scams, with many fake vendors and websites that aim to steal users’ personal information and cryptocurrency. The lack of regulation and oversight on the darknet means that users must be cautious when conducting transactions.
- Security Risks: The use of the darknet can expose users to malware and other security risks, as many sites are not properly secured or monitored. Users may also be vulnerable to hacking or phishing attacks.
- Stigma: The association of the darknet with illegal activities has created a stigma that may deter some users from using it for legitimate purposes.
- Virtual assistants: Siri, Alexa, and Google Assistant are examples of virtual assistants that use natural language processing to understand and respond to users’ queries.
- Recommendation systems: Companies like Netflix and Amazon use AI to recommend movies and products to their users based on their browsing and purchase history.
- Efficiency: AI systems can work continuously without getting tired or making errors, which can save time and resources.
- Personalization: AI can help provide personalized recommendations and experiences for users.
- Automation: AI can automate repetitive and tedious tasks, freeing up time for humans to focus on more complex tasks.
- Job loss: AI has the potential to automate jobs previously performed by humans, leading to job loss and economic disruption.
- Bias: AI systems can be biased due to the data they are trained on, leading to unfair or discriminatory outcomes.
- Safety and privacy concerns: AI systems can pose safety risks if they malfunction or are used maliciously, and can also raise privacy concerns if they collect and use personal data without consent.
Darknet
Definition:
Darknet, also known as dark web or darknet market, refers to the part of the internet that is not indexed or accessible through traditional search engines. It is a network of private and encrypted websites that cannot be accessed through regular web browsers and requires special software and configuration to access.
The darknet is often associated with illegal activities such as drug trafficking, weapon sales, and hacking services, although not all sites on the darknet are illegal.
Examples:
Examples of darknet markets include Silk Road, AlphaBay, and Dream Market, which were all shut down by law enforcement agencies in recent years.
These marketplaces operate similarly to e-commerce websites, with vendors selling various illegal goods and services, such as drugs, counterfeit documents, and hacking tools, and buyers paying with cryptocurrency for their purchases.
Pros :
Cons:
Artificial Intelligence
Definition:
AI, or artificial intelligence, refers to the development of computer systems that can perform tasks that would normally require human intelligence, such as recognizing speech, making decisions, and understanding natural language.
Examples:
Pros :
Cons: