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.
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[wptelegram-join-channel link=”https://t.me/s/upsctree” text=”Join @upsctree on Telegram”]2021 WEF Global Gender Gap report, which confirmed its 2016 finding of a decline in worldwide progress towards gender parity.
Over 2.8 billion women are legally restricted from having the same choice of jobs as men. As many as 104 countries still have laws preventing women from working in specific jobs, 59 countries have no laws on sexual harassment in the workplace, and it is astonishing that a handful of countries still allow husbands to legally stop their wives from working.
Globally, women’s participation in the labour force is estimated at 63% (as against 94% of men who participate), but India’s is at a dismal 25% or so currently. Most women are in informal and vulnerable employment—domestic help, agriculture, etc—and are always paid less than men.
Recent reports from Assam suggest that women workers in plantations are paid much less than men and never promoted to supervisory roles. The gender wage gap is about 24% globally, and women have lost far more jobs than men during lockdowns.
The problem of gender disparity is compounded by hurdles put up by governments, society and businesses: unequal access to social security schemes, banking services, education, digital services and so on, even as a glass ceiling has kept leadership roles out of women’s reach.
Yes, many governments and businesses had been working on parity before the pandemic struck. But the global gender gap, defined by differences reflected in the social, political, intellectual, cultural and economic attainments or attitudes of men and women, will not narrow in the near future without all major stakeholders working together on a clear agenda—that of economic growth by inclusion.
The WEF report estimates 135 years to close the gap at our current rate of progress based on four pillars: educational attainment, health, economic participation and political empowerment.
India has slipped from rank 112 to 140 in a single year, confirming how hard women were hit by the pandemic. Pakistan and Afghanistan are the only two Asian countries that fared worse.
Here are a few things we must do:
One, frame policies for equal-opportunity employment. Use technology and artificial intelligence to eliminate biases of gender, caste, etc, and select candidates at all levels on merit. Numerous surveys indicate that women in general have a better chance of landing jobs if their gender is not known to recruiters.
Two, foster a culture of gender sensitivity. Take a review of current policies and move from gender-neutral to gender-sensitive. Encourage and insist on diversity and inclusion at all levels, and promote more women internally to leadership roles. Demolish silos to let women grab potential opportunities in hitherto male-dominant roles. Work-from-home has taught us how efficiently women can manage flex-timings and productivity.
Three, deploy corporate social responsibility (CSR) funds for the education and skilling of women and girls at the bottom of the pyramid. CSR allocations to toilet building, the PM-Cares fund and firms’ own trusts could be re-channelled for this.
Four, get more women into research and development (R&D) roles. A study of over 4,000 companies found that more women in R&D jobs resulted in radical innovation. It appears women score far higher than men in championing change. If you seek growth from affordable products and services for low-income groups, women often have the best ideas.
Five, break barriers to allow progress. Cultural and structural issues must be fixed. Unconscious biases and discrimination are rampant even in highly-esteemed organizations. Establish fair and transparent human resource policies.
Six, get involved in local communities to engage them. As Michael Porter said, it is not possible for businesses to sustain long-term shareholder value without ensuring the welfare of the communities they exist in. It is in the best interest of enterprises to engage with local communities to understand and work towards lowering cultural and other barriers in society. It will also help connect with potential customers, employees and special interest groups driving the gender-equity agenda and achieve better diversity.