Why is Japan funding India for the bullet train/smart city project?




Ramesh, Full Stack Developer

In recent years, rapidly increasing its influence across South Asia and South East Asia in the name of Infrastructure Development ( like CPEC deal with Pakistan), Later this year succeeded in wng a Jakarta-Bandung High Speed Railway Project along with this bullet train technology impressing other countries across the world, this creates a tension over Japan.

Japan looking for opportunity to counter , this opportunity comes with India’s High Speed Railway Project.

  1. Japan wants to enter International Market (high speed railway) using this project.
  2. Japan already one of the contenders in the California’s high speed railway project, the success of this project helps to convenience America.
  3. Along with Mumbai-Ahmedabad corridor, India planning to make other six corridors across the country, the implementation and success of this project helps to convenience India for gaining other projects.
  4. There is a tough fight between and japan to win over 2026 Singapore –Ku Lumpur high speed railway project. Mumbai-Ahmedabad project make a road for Japan.
  5. Regarding the smart cities not only japan, but also different countries investing in smart cities, Japan (Varanasi), (pune), United States (Vishakhapatnam) etc...

Whatever may be the Japan’s interest? Overall this project improves Economic Cooperation and Regional Relationship between India and Japan.



  1. 日本希望利用这个项目进入国际高铁市场。
  2. 日本是加州高铁项目的竞争者之一,该项目的成功将为美国提供便利。
  3. 随着孟买-艾哈迈达巴德高铁线路的建设,印度计划在全国范围内建设另外6条高铁,该项目的成功将有助于促成印度开展其他高铁项目。
  4. 为了赢得2026年新加坡至吉隆坡高铁项目,和日本展开了激烈竞争。孟买-艾哈迈达巴德项目将为日本铺路。
  5. 关于智慧城市,不仅是日本,其他国家也为智慧城市提供融资,日本(瓦拉纳西)、(普纳)、美国(维萨卡帕特南)……



Manish Sinha, lives in India

Why do people invest in pension plans during the time they are still active and working?

So that when they retire, they can are ensured of steady supply of money when their body becomes weak.

Japan is country where average life expectancy is one of the highest in the world. By giving countries like India a loan with repayment period of 50 years and interest rate of only 0.1% , it ensures that it has a steady supply of money to invest in welfare project for her people, for the next half century.  in bank is better than  at home.

Great credit history of India and its burgeoning economy aids this decision. India is also a natural super power with its land mass and demography combined. It's a common policy to go with a giant . Just like Japan spends less than 1% on its defence as it has US as it's ally.

Secondly, only competitor for Japan is and India is never going to for such a project . It helps Japan's cause.

So all those who are going mad about Japan's investment including some ridiculous news channels , we should understand the economy behind such decisions. And if it is a win-win situation for both, then there is no need to worry.






译文来源:三泰虎 http://www.santaihu.com/46796.html   译者:Jessica.Wu


Vaibhav Mogra, studied at St. Xavier's College, Kolkata

Japan provides financial and technical assistance to India for the bullet trains and smart city. Japan provides assistance to develo countries through Japan International Cooperation Agency. It has money to invest. In infrastructure money is locked in for long period of time and provides revenues later. But development of infrastructure is of a lot of importance for the development in any develo country.

Maintaining good relations with India benefits Japan.

Yes po itically, Japan which doesn't have an army needs strong allies to prect its interest in the South Sea.

Economically also it benifits as the countries engage in free trade agreements benefiting the esting Japanese countries and making their products more competitive in India.

Nobody gives anything for free and a lot is thought of before giving money.





Akash Gupta, Manager to Clerk

Japan is funding the INR 98000 crore bullet train project. for the project there were mainly two contenders japan and . some of reason where japan got a boost can be:


Japan has provides the loan for almost 80 percent of cost at a minimum interest rate of .01% spread over a period of 50 years subject to the condition that the locomotives and other items to purchased from japanese companies only.

  1. strategic-

japan wants maintain its strong relationship with India as it is the strongest ally in asia.


  1. 财务方面:日本以01%的最低利率提供了近80%的贷款,期限为50年,但条件是列车等设备只能从日本公司购买。
  2. 战略方面:日本希望和印度保持牢固的关系,因为印度是亚洲最强大的盟友。


Manthan Vijay Shah, History and po itics <3

Its called investment and not donation....nobody INVESTS until they see a return. Same is the case of Japan....their economy is getting stagnant day by day and they need to invest it to grow....u might be aware of the govt giving reliance the contract to build metro in Mumbai.....reliance invested the money and built it.....today reliance collects a share of the fare....so Japan too will bag a share of the fares....plus it will give them more goodwill and contracts in other places of the world including India....they have the technology and hence they would like to earn by investing...



Aishwarya Rajput, studied at Bombay Cambridge School

Japan is funding India because Japanese companies are experts in develo Smart Cities and Bullet Trains worldwide.

So the go nment of India is taking help of Japan to serve the people with Bullet Train and Smart Cities



Sidhartha Panda, Field Expert

Japan have a technology expertise and India is in need. its a business proposition I will help you in setting up the project and you will pay me for that. But such a large project costs billions so India will pay using a natural resource or by a deal. That japan will take the entire revenue generated from the project for the next 20 or 30 years.

Its a win-win situation, India gets what it wants without having the necessary money, Japan gets future secured return for the next 20 to 30 years plus additional projects if necessary




Akshay Kr Gupta, A Famous Anonymous

First thing, it is not a charity show.

In fact it is an investment. Japan is investing because it can see a better return from India.

As our economy is growing, so they are investing.

You can take the example of our High Ways and Express Ways. Construction companies are building the roads on contract. We have same story in case of Bullet Train with Japan. It is nothing but a contract.




Gokul Beeshman, CS Undergrad. Curious. Freethinker.

Of course they do.

It is a strategic investment in a fast growing economy.

Money invested in India (or most develo countries for that matter) tends to give higher returns.

If your question is why the Japanese in particular are interested in this, I believe it is because the Japanese have an excellent public transport sy em and they would like to see the rest of the world enjoy it.





Gijo Vijayan, works at Movie Business and Industry

India can earn Billions of Dollars from this Railway line



Dhawal Barot

I would like to tell that it's not funding but Investment if you read news sir!!

Investment word itself clarify why they did this .. !!


投资这个词本身就能解释他们为什么要这样做。! !


Debatra Mazumdar, IRSME at Indian Railways (2017-present)

The rivalry of Japan with is well-known. The rivalry of India with , too, is well-known.

Since after , India is globally seen as the "next-big-thing", Japan wants to keep India close. It is a strategically and economically beneficial move for both the nations. After all, enemy of an enemy is a friend.




Anubhab Kundu, Trains are my fascination...curiosity and special interest

Bcoz india is not financially strong enough to make its first bullet train rake on her own. India is a poor country. But the GDP of Mumbai is enough to buy 2 or 3 trainsets easily and hence she went for purchasing the trainset.



Suraj Rana, lives in India

Coz we are buying it whatelse




Nothing is free , they are giving us technology in return we hel to be economical strong. They are giving us loan and we have to pay loan with the interst.



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