Bullet trains: A true necessity?

Recently there was great fuss about high speed trains. It achieved profound importance in BJP’s manifesto and then it was reiterated in the rail budget 2014-15. A hefty sum has been allocated for developing Mumbai-Ahmedabad stretch of Diamond quadrilateral project which will connect metro and growth centres with high speed trains. Critics, opposition parties and academicians have made hue and cry over the need of bullet trains in India. If bullet trains are really required?

At a time when economic growth is dwindling, inflation is persistently high and twin deficits (fiscal deficit and current account deficit) are looming over dangerous limits, such a huge investment in high speed corridor may further deteriorate the economy. Running bullet trains will come with great challenges:

-          Building separate infrastructure to support high speed rails such as laying down the new tracks, signal systems, safety standards will require huge funds

-          Land acquisition for laying the new tracks will again be a time taking and costly affair given the stringent provision of land acquisition act, 2013. A large number of people will be affected who need to be rehabilitated and resettled.

-          License raj and red tapism in India have made it difficult to start the projects. Many large scale projects are stuck due to the environment and forest clearances. Getting the clearances will be an issue to reckon with.

-          When investors’ confidence in the economy is at abysmally low, attracting them to invest in high speed trains will be a tenuous job.

No doubt, bullet trains will drastically reduce the travel time but it will be affordable only by richer strata of society. Poor will be deprived of the benefits to a large extent. It is argued by the government that high speed corridor will facilitate transport of perishable goods at faster speeds leading to less wastage which will ultimately rein in the food inflation; however, even if that’s true, developing bullet trains network is yet a far distant dream. Also, tourism industry will proliferate bringing more foreign capital to the country and hence enhancing the economy. 

Altogether, high speed trains will be beneficial; however, due to large scale investments and other concerns stated above certainly their negativities outweigh the positive outcomes. They may be considered to be a serious attempt to demonstrate India’s prowess in the world and particularly in its neighbourhood.

India with a population of 1.2 billion has largest share of world’s poorest (UN MDG 2014 report). With its largest rail network worldwide, it is still grappling to address the issue of passengers. Stations are thronged, trains are crowded; passengers still strive hard to get a seat in general bogie, ticket booking through internet is hassled, scores of accidents, safety issue for passengers especially women and modernisation are few issues of much more concern.

The country is sitting on huge demographic dividend and to reap its potential it need to invest largely in social sectors such as health and education. Therefore, though bullet trains can be a long term priority, in short and medium term the government should shift its focus to sustainable development and inclusive growth.