thakur_ritesh
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Got to agree with energon that not every time we need to get into a comparative mode but then one of the few reasons why we jumped to opening up the economy other than the imminent threat of bankruptcy was also the way the prc had zoomed past us by leaps and bounds when at one stage India was doing better than the prc economically, so it is but obvious invariably people will like to make comparisons and as such the comparisons are being made with something better which only envisions the nation to do something as good or may be out do it.
DMRC (the delhi metro) has been a revolution when it comes to implementing projects in the country, not only do they bite more than they can chew but also complete the project a few months before the deadline of completing the project, which shows if the right attitude is there, along with sound government backing, doing projects in time in India is no big deal, and encouraged by that, today they are handling metro projects worth rs80,000crores (17b usd) all over India.
Taking a leaf from the prc’s book we do realize that a decent chunk of our gdp growth would come from by investing in the infrastructure sector, where once the investment in the sector was a mere 4% of gdp has now increased to 8% with the aim of making it increase to 12% by the end of current 5year plan as per montek singh.
Things are bound to happen, the high speed rail network will take shape in times to come but certainly not before another 5(+)years. The economics are in our side, just get a hang of it. If India were to have a real growth rate of 6%, with inflation at around 2%, and appreciation of currency at around 2% (as highlighted by the imf) economy by 2020 at current market rates would be 3.56t usd, similarly if the growth rate would be at 8%, inflation at 2%, and currency appreciation at 2% the economy would be 4.34t usd. Just looking at these figures tells us that spending something like 400-500b usd/year by 2020 on infrastructure sector wont be any big deal, today the same figure hovers around 100b usd.
Numbers are with us, but as I said before, today the priorities are different.
Mattster,
One of the draw backs of such high end technology which cant be used and implemented on large scale is that just the break even has a very long realization timeline which could in some cases pretty well run up to a time line of 100years, and so I thought doing the above calculations was important.
Yes there is no doubt the pricing of the service would be highly subsidized in the prc or else who would use the service, that said both the prc and India are few of the fastest growing air traffics of the world, so the market certainly exists for such high speed trains.
DMRC (the delhi metro) has been a revolution when it comes to implementing projects in the country, not only do they bite more than they can chew but also complete the project a few months before the deadline of completing the project, which shows if the right attitude is there, along with sound government backing, doing projects in time in India is no big deal, and encouraged by that, today they are handling metro projects worth rs80,000crores (17b usd) all over India.
Taking a leaf from the prc’s book we do realize that a decent chunk of our gdp growth would come from by investing in the infrastructure sector, where once the investment in the sector was a mere 4% of gdp has now increased to 8% with the aim of making it increase to 12% by the end of current 5year plan as per montek singh.
Things are bound to happen, the high speed rail network will take shape in times to come but certainly not before another 5(+)years. The economics are in our side, just get a hang of it. If India were to have a real growth rate of 6%, with inflation at around 2%, and appreciation of currency at around 2% (as highlighted by the imf) economy by 2020 at current market rates would be 3.56t usd, similarly if the growth rate would be at 8%, inflation at 2%, and currency appreciation at 2% the economy would be 4.34t usd. Just looking at these figures tells us that spending something like 400-500b usd/year by 2020 on infrastructure sector wont be any big deal, today the same figure hovers around 100b usd.
Numbers are with us, but as I said before, today the priorities are different.
Mattster,
One of the draw backs of such high end technology which cant be used and implemented on large scale is that just the break even has a very long realization timeline which could in some cases pretty well run up to a time line of 100years, and so I thought doing the above calculations was important.
Yes there is no doubt the pricing of the service would be highly subsidized in the prc or else who would use the service, that said both the prc and India are few of the fastest growing air traffics of the world, so the market certainly exists for such high speed trains.