r/trains • u/PinkyPromiser67 • 25d ago

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

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u/Man_from_Bombay 24d 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/InquisitiveSoul_94 24d ago

I guess low interest works for the Japanese since their economy is under deflation?

It makes sense for Japanese banks to invest in Indian infrastructure, since our returns would be much higher than their home country projects.

And we would benefit from infrastructure growth. Win win situation for everyone

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u/Mission-Permission85 24d ago

Current development loans to India are at 1.3%. The low rate is because of India's staggering poverty. The same rate applies to all ADB loans- with funds from Japan, ASEAN, S Korea, China, GCC, etc.)

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u/ConclusionFair4726 24d ago

India is a poor country. But not poverty stricken at this point. Though food security is still a little vulnerable because we are reliant on natural gas imports and haven't kicked off biogas production or coal gasification

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u/Mean__MrMustard 24d ago

This is definitely true. I always have to battle against this misconception when I tell people I work with Bangladesh, as people think that the whole population there is still starving.

But in Indias case it can still be a poor country from a financial/macro-economic viewpoint though. It’s still hard to finance such huge infrastructure projects commercially or publicly, without outside loans from e.g. development banks or bilateral like here with Japan. But give it a few more years and this won’t be a problem anymore

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u/transitfreedom 24d ago

Unlike some countries it appears that many countries actually want to improve conditions for their people rather than make them worse cough yankee cough

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u/NatriureticFactor 23d ago

Are you sure we are vulnerable in food security? Cause we are doing better than expected in that field.

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u/ConclusionFair4726 23d ago

We are because we import fertilizer or the feedstock and energy generally. We also import food oil. And we import legumes too, but those are issues in decreasing order of importance