Why is Modi govt after the trains ?

Umang jain
2 min readJul 30, 2020

As countries get efficient, they achieve this with the backbone of steadily improving or improved transportation system. Good transportation system enables fluid movement of goods and low hesitation for migration in the population.

United States has developed roadways so much that they have almost weeded out the need for freight trains. Freight trains in the US are now completely run by a single private company.

Indian roadways isn’t capable of handling these high precision semi trailers that are used for transportation across the states.

Indian railways on the other hand still maintains a high penetration but hasn’t been used efficiently so far. Hence the upgrades.

Also, according to the economic survey of India ‘2020, One of the 8 major themes of this govt is to improve the overall transportation of goods in order to

Improve The ease of doing business ranking with India tracked by the World Bank.

Which in turn

Is monitored by multinational companies before making the decision to invest in a country.

India jumped in ease of business doing ranking to 63 from 140 in 5 years (2014–2019). Not just this, the privatisation of railways is another excellent move by the modi govt to weed out corruption that is causing the railways to ill perform. Privatisation in any market is a tested methodology to introduce free market economics which drive up the innovation and efficiencies among the ill performing assets. One previous example is how the govt of india privatised the indian car market in the 90s and recently completed exited it by selling off its only remaining stake in Maruti. It now trusts the private companies to operate responsibly for the Indian customer.

So the next time somebody questions you about what the modi govt is doing for the economy, you know where to point them to!

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Umang jain

Technology, Economics, Travel, Music - Opinions published here are my own.