India's access to global export markets, particularly China, hinges on the development of high-speed trains

14 Nov, 2023

India's access to global export markets, particularly China, hinges on the development of high-speed trains

China's vast high-speed rail network has fueled export success by enabling firms to rapidly share knowledge across vast distances. India's slow intercity trains reflect lagging manufacturing and missed chances to catch up.

The fastest train between Chennai and Bengaluru, southern Indian hubs, takes over 4 hours for 177 miles. China's bullet trains cover 665 miles from Beijing to Shanghai as quickly. Since 2008, China's high-speed rail has grown to a 26,000-mile network at 220 mph. India's fastest train can't reach its 80 mph potential on most tracks.

According to researchers, China's rail integration strongly boosts exports. Firms export more, at lower prices and higher volumes. Transport is key for knowledge sharing. Sales managers take more frequent trips, gaining fashion insights that raise orders 50%. In India, services exporters relocated staff to major hubs. But goods exporters weren't as mobile.

As the automotive industry center shifted south, small Indian manufacturers began to diminish. With intercity train trips up to 39 hours, they lost touch. In China, an 1,100-mile trip takes 7-8 hours. Taiwan's 2007 high-speed rail enabled tech manufacturing to spread beyond one hub. India's manufacturing shrank below 15% of GDP.

China steadily climbs the sophistication ladder, extending skills inland via fast trains. With youth in new factories, China spreads manufacturing expertise. India may fall behind on productivity and demographics.

India got some things right, like a nationwide sales tax and new highways. But fledgling exporters need affordable trains to meet partners, customers and suppliers to fill gaps. Air travel is for closed deals. Trains enable moonshots. The country nearing the lunar south pole shouldn't take this long to connect cities faster.