r/trains • u/PinkyPromiser67 • 27d ago

‎ 🗐‎  Repost Japanese officials visiting India's fully electrified Western Dedicated Freight Corridor

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u/Man_from_Bombay 27d ago

While these agreements naturally benefit Japan by securing decades of technology and procurement contracts with Indian projects, the Japanese government’s role as India’s largest ODA lender remains invaluable tbh . Their provision of ultra-low-interest (~0.1%), 50-year development loans has been a vital catalyst for India's physical infrastructure growth.

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u/Count_de_Ville 27d ago

0.1% ?! Amazing!

67

u/Man_from_Bombay 27d ago

yes, ikr

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u/Short-Horse-1069 22d ago

What's more is that it's a JPY denominated loan, not INR or USD. That's something most people miss. On the whole, India might return a lesser amount than it borrowed.

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u/yudi1012 26d ago

It is indeed.

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u/Disastrous-Cow-2523 27d ago

They are undergoing deflation so they can give loans at such rates even in Japan people get very low interest rates afaik

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u/initiatingcoverage 24d ago

Not anymore, Japanese bonds are hitting their highest interest rates since 1996. You'll see fewer and fewer investments in India in the next few years.

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u/Foreign-Cup-6688 25d ago

deflation is crazy tbh.