Recently, as the conflict between Russia and Ukraine continues, Russia has faced severe sanctions from the West, significantly impacting its energy exports.
India has taken advantage of this situation by negotiating lower prices with Russia in Indian rupees.
Now, India has once again announced a infrastructure contract exceeding $12 billion, attempting to entice China, known for its voracious appetite for construction projects. Will China take the bait?
India has long harbored ambitions to dominate the Indian Ocean, yet despite its large population, its industrial and infrastructure capabilities still do not match its status as a major power.
A widely circulated photo on the internet highlighting India's unique practice of hanging train tickets has become a subject of global ridicule.
In contrast, China, as a competitor, constructed and operated high-speed railways reaching speeds of up to 350 kilometers per hour sixteen years ago.
Although India signed a cooperation agreement with Japan in 2017, its first high-speed rail line with a speed of 320 kilometers per hour has yet to be completed.
In addition to railways, India's road construction primarily relies on infrastructure left over from the colonial era.
While India ranks second in the world in terms of total road length, the quality is inconsistent. It is said that India classifies paths suitable for pedestrians and animals, as well as roads for motorcycles, as highways.
National highways account for only 2% of the total road length, with very few expressways.
Therefore, India's achievements in road construction are limited.
India's recent announcement of an $80 billion high-speed rail project has once again attracted attention.
However, China's high-speed rail technology has long been an international benchmark, known for its safety and efficiency.
It is favored not only by foreign passengers but also exported to Europe and Southeast Asia.
In contrast, India experiences frequent traffic accidents, with over 450,000 incidents in 2019 alone, resulting in the deaths of over 100,000 people.
India faces challenges in infrastructure development not only from a technical standpoint but also due to complex political and social factors.
Despite ambitious efforts by the Indian government, such as Prime Minister Modi's leadership in the Mumbai-Ahmedabad high-speed rail project with a design speed of 350 kilometers per hour and an investment exceeding $12 billion, conflicts of interest between states and land disputes delayed the project for 12 years, with full construction not commencing until 2021. Despite the project's eventual launch, progress has been slow, with only a few kilometers of elevated construction completed.
Japan, as the contractor, faced difficulties due to India's complex political and social environment, resulting in budget overruns and unusually challenging project conditions.
In addition to infrastructure construction, India faces numerous issues in international cooperation.
Although economic data indicates improvement, India's government faces severe financial challenges, with a fiscal deficit of 6.4% of GDP and public debt rising to 83.1% of GDP, raising concerns about national finances.
Facing India's construction orders presents an opportunity for China to showcase its technological prowess, but it also comes with significant risks.
India's unpredictability and complex land policies make project advancement extremely challenging.
Therefore, such high-value contracts may be more suitable for countries like Japan to undertake, and China may need to carefully consider the consequences before committing.
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