The Untapped Potential of Railways in India’s Connectivity Strategy

Cross-border railways are a critical neglected link in New Delhi’s connectivity strategy in its neighbourhood. With freight cost cheaper than roadways over longer distances, less time-consuming logistics and a greener mode of transportation, railways offer distinct advantages that other modes of transportation do not. India’s efforts in this area have seen some progress in recent years, but the gains have been insufficient to unlock the true potential of cross-border railways as a game-changer for regional trade.

India’s foray into railway connectivity over the past decade has been steered by geostrategic compulsions rather than economic dividends.

India’s foray into railway connectivity over the past decade has been steered by geostrategic compulsions rather than economic dividends.  In Eastern South Asia, six out of seven railway lines with Bangladesh have been revived. New railway lines connecting India and Nepal have been completed. In the Northeast Region (NER), railways are being constructed for the first time and extended to the border with Myanmar. Plans are also underway to develop five railway lines with Bhutan, including one to the Gelephu Mindfulness City. While these developments mark important milestones, the failure to address persistent ground level issues has rendered cross-border freight movement via railways limited at less than 4%.

Cross-Border Railway Connectivity Matters

A recent study by the Centre for Social and Economic Progress, Express Routes: India’s Railway Connectivity With South Asia, highlights the drivers behind India’s investment in cross-border railways. Economically, railways offer an opportunity to tap into the region’s burgeoning growth and enhance trade competitiveness. Politically, it aligns with India’s ‘Neighbourhood First’ and ‘Act East’ policies, fostering regional cooperation.

At the geostrategic level, railway connectivity provides New Delhi a counterbalance to China’s growing influence through infrastructure projects in South Asia under the Belt and Road Initiative. India’s expertise in railway development, particularly tunnelling in hilly areas, provides it with a competitive strategy to strengthen ties with its neighbours and project soft power in the region. While India has advanced railway links with Nepal such as the Jayanagar – Bijalpura link, comparatively, China’s rail project, including the Kerung (Tibet) – Kathmandu railway line, still at the feasibility stage. For India and its neighbouring countries, improving railway connectivity is not merely a logistical or environmental effort. It is also a testament to the evolving geopolitical landscape, strategic ambitions, and developmental imperatives of the region.

For India and its neighbouring countries, improving railway connectivity is not merely a logistical or environmental effort. It is also a testament to the evolving geopolitical landscape, strategic ambitions, and developmental imperatives of the region.

For years, studies by several multilateral, regional and national institutions have highlighted the potential of cross-border railways, including through UNESCAP’s ambitious Trans Asian Railway Network, adopted by countries including Bangladesh, India, Myanmar, Nepal, Pakistan, Sri Lanka, and Thailand in 2006. New Delhi’s own 2014 India Transport Report underscored the promise of leveraging railways to strengthen regional connectivity.

However, to fully utilise the potential of cross-border railway connectivity, several challenges need to be addressed. First, inadequate infrastructure remains a key problem. Existing railway infrastructure in many parts of South Asia is outdated and ill-equipped to handle modern cargo needs. Poor maintenance and limited investment in border facilities exacerbate inefficiencies. Second, the lack of harmonised Standard Operating Procedures (SOPs) for cross-border rail operations creates delays and inefficiencies in trade flows. Standardisation is essential for seamless operations and cargo movement. Third, cross-border railway projects often face hurdles due to concerns about smuggling, terrorism, and other security risks. These concerns hinder trust and cooperation between countries. Finally, the private sector’s involvement in cross-border railway development and operations remains minimal, further restricting innovation and efficiency.

Enablers for Change

To unlock the potential of cross-border railways, India and its neighbours must focus on a range of enablers, both at the policy and ground-levels.

First, enhanced coordination between governments, railway authorities, and the security establishment is crucial to address policy bottlenecks, infrastructure development and streamline cross-border operations. In the security-sensitive border areas, joint patrolling and shared security protocols, for example, can foster trust and cooperation.

India’s strategic advantage in its neighbourhood lies in its capacity to undertake and execute infrastructure projects through robust development cooperation mechanisms, backed by financial tools such as grants and LoCs.

Second, New Delhi must leverage its development cooperation. India’s strategic advantage in its neighbourhood lies in its capacity to undertake and execute infrastructure projects through robust development cooperation mechanisms, backed by financial tools such as grants and LoCs. This should also extend beyond financial assistance to include transferring expertise, technology, and best practices in railway management and operations, and training programmes for railway staff and drivers, covering technical qualifications and language skills.

Finally, encouraging private sector investment through public-private partnerships and incentives can spur innovation and improve service delivery. Leveraging private sector expertise and funding would enable countries like Nepal and Bangladesh to reduce its reliance on geopolitical powers and create a more resilient and efficient railway network, which would, in turn, foster stronger regional connectivity and economic growth.