According to a Tuesday announcement from a spokesperson for the Indian Ministry of Railways, the two Asian giants, China and India, have entered into discussions to jointly build India's first high-speed railway, a 1,754-kilometer track to link Delhi with the southeastern city of Chennai. A high-level delegation of Indian rail officials arrived in Beijing Monday to hammer out an agreement on the feasibility of the project with their Chinese counterparts.

If completed, it will be the first rail pact following a Memorandum of Understanding on railway development signed by the two countries during Chinese President Xi Jinping's trip to India in September. But it will not be plain sailing for Beijing to access the Indian market.

The suggestion that China might partner with India to provide high-speed rail has not yet been well-received by the Indian public. In March, Indian media reported that India would not seek China's help to launch a high-speed rail network. Besides, Japan, which is also eyeing the market and has pledged to offer a more attractive funding scheme, is a serious rival in the sector.

Earlier this month, the Mexican government abruptly cancelled a $3.7 billion contract on a high-speed rail project with Chinese firms due to suspected corruption on the Mexican side, which shocked and frustrated the Chinese market.

Most regions in desperate need of upgrading transportation infrastructure are emerging economies, such as India and Mexico, and also less developed countries, where investors could face a volatile environment.

This underscores the harsh reality Chinese high-speed railway contractors face as they attempt to penetrate overseas markets. Nevertheless, say railway experts, as long as the risks inherent in such projects are not underestimated, even to the extent that contracts must sometimes be abandoned, these projects will not only benefit society, but also provide much-needed economic stimulus.

Having labored under years of inadequate investment, much of India's antiquated railway system is plagued by congestion and lacks passenger amenities. This hampers the mobility of goods and people and affects business. India sorely needs to overhaul its lagging railway infrastructure, and China, with the world's most extensive high-speed rail network, is perfectly placed to help.

China has become one of the very few countries that owns intellectual property rights for high-speed rail technology, and has achieved this in the space of only a decade. Its competitiveness rests on its reputation for efficiency and cost-effectiveness. Recent years have seen unstinting Chinese efforts to push for a bigger share of the overseas high-speed market, endorsed by senior State leaders such as Premier Li Keqiang.

The global reach of Chinese high-speed rail is still in its nascent stage, and there will surely be much uncertainty as to how it will progress. A successful China-India rail partnership could yield untold dividends for both sides.  

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