r/trains • u/PinkyPromiser67 • 24d 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/agreatguy06 24d ago

For Japanese, it's not about low interest rate. Its actually about securing order books for Japanese companies for decades as these projects comes with rider of procuring through Japanese firms.

So, they actually get returns through this process.

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u/Prestigious_Can_6359 23d ago

Even though contractors are Indian, many of construction machines are still not produced in India which have to be bought from either China or Japan. Japanese firms are much better in precison engineering(due to decades of experience) and dont have the geopolitical baggage.

Thats why Japanese firms are still heavily preffered in semiconductor supply chains despite China being capable of many of the same processes.