East Japan Railway, Getty Images
Industryweek 9871 120815japanindiatrainejr

Japan Exports Its Bullet Train to India

Dec. 8, 2015
Japan will help finance the rails, with prime ministers Shinzo Abe and Narendra Modi expected to deliver an official announcement during a visit this weekend.

TOKYO — Japan is set to build India's first bullet train, with Tokyo financing the project through an $8 billion loan to New Delhi, according to a Tuesday report in The Nikkei, a leading Japanese business daily.

The Nikkei, which did not cite sources, said the bullet train will link the cities of Mumbai and Ahmedabad, and that the two countries will issue a joint statement about the deal on Saturday during Prime Minister Shinzo Abe's visit to India, where he will meet Prime Minister Narendra Modi.

The report comes after Japan failed to win a high-speed train deal in Indonesia earlier this year, losing out to a Chinese proposal.

A deal with India would be the second successful case of Japan exporting its bullet train technology to a foreign market, following a deal with Taiwan in 2007, Japanese officials said.

Two officials from Japan's trade and transportation ministries refrained from confirming the contents of the Nikkei article, telling AFP only that the Japanese government was making "utmost efforts toward such an agreement."

Abe, who departs Friday for India, is to tell Modi that Japan will provide one trillion yen ($8.14 billion) worth of loans during the next decade that would finance more than half of the approximately 980 billion Indian rupee ($14.67 billion) cost of the project, the Nikkei said.

The introduction of high-speed links and bullet trains were one of the key campaign promises of Modi, who was elected in May 2014.

India's vast rail network runs 12,000 trains a day, carrying 23 million people and connecting about 8,000 stations, but has suffered decades of neglect at a time of rapid economic growth during which car ownership has surged and low-cost airlines have mushroomed.

Modi's government said last year it would open up the railways to foreign investment as they struggle to win back freight traffic lost to roads, coastal shipping and planes.

Last year an Indian passenger train set a new national speed record of 100 mph — just half the speed of the Japanese shinkansen.

Copyright Agence France-Presse, 2015

Popular Sponsored Recommendations

Global Supply Chain Readiness Report: The Pandemic and Beyond

Sept. 23, 2022
Jabil and IndustryWeek look into how manufacturers are responding to supply chain woes.

Empowering the Modern Workforce: The Power of Connected Worker Technologies

March 1, 2024
Explore real-world strategies to boost worker safety, collaboration, training, and productivity in manufacturing. Emphasizing Industry 4.0, we'll discuss digitalization and automation...

How Manufacturers Can Optimize Operations with Weather Intelligence

Nov. 2, 2023
The bad news? Severe weather has emerged as one of the biggest threats to continuity and safety in manufacturing. The good news? The intelligence solutions that build weather ...

How Organizations Connect and Engage with Frontline Workers

June 14, 2023
Nearly 80% of the 2.7 billion workers across manufacturing, construction, healthcare, transportation, agriculture, hospitality, and education are frontline. Learn best practices...

Voice your opinion!

To join the conversation, and become an exclusive member of IndustryWeek, create an account today!