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Next game changer: High-speed rail may add ₹60 trn to economy in 15 years | Current Affairs | Vision IAS

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Next game changer: High-speed rail may add ₹60 trn to economy in 15 years

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High-Speed Rail (HSR) Programme in India

India is in a favorable position for a substantial infrastructure expansion, with a focus on developing a transformative High-Speed Rail (HSR) programme, similar to the impact of the National Highways Development Project and renewable energy initiatives.

Rationale for HSR

  • India's per-capita GDP is comparable to nations that initiated HSR decades ago, suggesting it's the appropriate time to transition from conventional rail to HSR.
  • An HSR initiative aligns with the government's agenda to stimulate economic growth, necessitating bold infrastructure projects empowered by political will and robust institutions.

Benefits of HSR

  • HSR can alleviate the financial burden of ₹60,466 crore in passenger subsidies by attracting aspirational travelers who value speed and comfort.
  • It offers a competitive edge against affordable air travel and luxury inter-city coaches.

Critical Priorities for HSR Success

  • Dedicated lines are essential to maintain speed and reliability, without mixing with slower traffic.
  • Transition to standard gauge for better technology transfer, vendor partnerships, and international compatibility.
  • Secure long-term, sustainable financing by engaging cities and states as co-developers, akin to metro-rail models.
  • A standalone High Speed Rail Corporation should manage HSR to overcome the conservative Railway Board hierarchy.

Indigenisation and Economic Impact

  • Localising rolling stock and components will reduce import dependence and create a strong supplier base, integrating HSR into industrial policy.
  • Every kilometre of HSR offers five times the capacity of conventional rail, promoting development in Tier II and III cities and relieving pressure on metros.
  • HSR stations can become economic hubs, with studies showing GDP gains of 2.7% higher in connected cities.

Job Creation and Training

  • The HSR project is generating significant employment, including 90,000 construction jobs and 4,000 direct O&M jobs.
  • The Vadodara HSR Training Institute is equipped to train 3,500 personnel, building a skilled workforce for the future.

Economic Multiplier Effect

  • A proposed 15-year HSR programme covering 10 corridors would require around ₹20 trillion and could potentially yield ₹60 trillion in economic benefits using a multiplier of three.

Conclusion

The HSR initiative is poised to redefine India’s economic landscape, marking the next significant chapter in its growth story. As India aims to become the third-largest economy, a modern railway system is a source of national pride.

  • Tags :
  • High-Speed Rail (HSR) Programme
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