All statements in this article are based on reliable information, and the sources are detailed at the end of the article
We are all familiar with the subway, which is built underground in the city and can greatly reduce the pressure on transportation on the ground.
It can achieve greater traffic volume and also has good social benefits.
The development of this industry is very important for some countries with large population bases, such as India.
It took India many years to build the metro, which cost Rs 145 billion.
However, it is worth noting that the Indian side spent a lot of effort to build the subway in the end, but no one took it.
Eventually, the subway operating company involved also went bankrupt, so what exactly is the reason for this?
1. India spent 145 billion to build a subway
It can be found that India's economic development has become more and more rapid in recent years, and although there are often corresponding fluctuations, India is still one of the fastest growing countries in the world.
According to relevant market statistics, the nominal GDP created by the whole of India in 2023 reached 288.13 trillion rupees, which is about 3.49 trillion US dollars.
The per capita level is also at an all-time high, reaching around $2,500.
The main reason why India's economy has been able to maintain such a rapid economic development rate is that India has a large population base that is suitable for the development of basic and large-scale manufacturing industries.
Therefore, in recent years, many Western countries have entered the Indian market for investment, which has created great vitality for India's economic development.
Last year, India's population surpassed that of our country and became the world's most populous country.
The demographic dividend will certainly create more favorable growth opportunities for India's economy.
However, transportation and infrastructure problems on the Indian side can be an obstacle to economic development.
With the gradual growth of the population and the continuous expansion of the industrial market, the transportation capacity of India needs to bear more pressure.
In the previous development of India, India did not pay much attention to the road planning of domestic cities, which also led to frequent traffic congestion.
In fact, some densely populated cities on the mainland also had such problems before, but since our country has expanded the scale of the subway network in some cities, the corresponding problems no longer exist.
It should be known that as of December 31, 2022, the cumulative length of metro lines in Chinese mainland has reached 8012.85 kilometers.
This figure accounts for about 78% of the total length of urban rail transit operating lines, and India naturally wants to follow suit.
For this reason, the Indian side has also decided to build a larger metro network in order to increase transportation capacity and reduce the transportation pressure.
It can be found that in the last 10 years, the scale of India's metro network has indeed been expanding.
India's metro network is now around 870 kilometres, with another 1,000 kilometres under construction.
However, India's metro network is not doing well, although it is being built very quickly.
Take the more representative New Delhi satellite city of Gurgaon Express Metro as an example, the subway company behind it seems to have entered the brink of bankruptcy.
It is reported that the metro line was completed in 2013 at a cost of Rs 145 billion.
When the metro line was first built, it could transport 60,000 passengers per day, making it known as Gurgaon's "daily commuting lifeline".
In 2017, the second phase of the metro line was also put into market operation.
In addition, there are subway entrances at many major local facilities, which is a very important public facility in the area.
2. Why no one sits
The original intention of building the subway itself was to facilitate people's travel and reduce the traffic operation pressure on the above-ground roads.
However, after the completion of the Gurgaon Express Metro in New Delhi, a satellite city of New Delhi, the local people did not seem to buy it, and then no one cared about this section of the subway.
At the beginning of the construction of the subway, local officials predicted that more than 20,000 nearby commuters would need to use city transportation to get to their places of work every day.
At least half of them will also choose to take the express subway.
But only a few years have passed, and it seems that no one wants to take this subway anymore.
The factors behind this have to do with the preconceived notions of the Indian people. In fact, Indians are not very receptive to the subway.
Only a few people are willing to take the subway, and most people are actually not willing to take such underground rail transportation.
Many Indians prefer to drive on the road and are happy to travel by motorcycle, even if they don't have enough money to buy a car.
Therefore, such subway facilities have naturally become chicken ribs.
One of the main problems is that the Indian population is generally not well educated and can adapt to the automated metro station facilities.
In their eyes, this aspect of automation has become a hassle that hinders their travel.
In this regard, India's situation does not seem to be suitable for the construction of subways.
In addition to this, the ticket price is too expensive to also play a reason.
According to the ticket pricing at that time, the subway fare of no more than 3 kilometers cost 35 rupees, which is equivalent to 3 yuan.
In our eyes, such a price may not be too expensive. But the people of India don't think so.
India is a country with a large gap between the rich and the poor, and there is also a caste system, which has widened the gap between the rich and the poor in India to a certain extent.
Then it is clear that the level of wages of ordinary people is not enough to support the consumption of the subway.
If you commute twice a day, the minimum cost of a metro fare is 70 rupees for a day and about 2,000 rupees for a month.
This has taken up a large proportion of the average employee company, and it is better for them to take the subway than to ride a motorcycle.
For the wealthier, there is no need to take the subway to travel by car or commute by car.
In the eyes of ordinary people in India, such convenient facilities are no different from the infrastructure of Zaimin, so naturally no one sits on them.
After the construction of this subway line, there are indeed many people who may want to take the subway freshly.
However, with the influence of stereotypes and economic aspects, most people in India will probably adopt a more economical way of commuting to meet their commuting or travel needs.
3. Poor operation and eventual bankruptcy
One thing we need to be clear about is that the subway that you want to build will certainly need to invest a lot of money upfront.
This metro line is no exception.
The development company behind the construction of this subway has paid a huge cost, and it will also take a long time to operate to recoup the cost.
But if no one rides, how do you recoup the cost?
This subway line is completely different from our country, and the subway construction in the mainland is state-owned, so there is no need to worry about short-term losses.
For the sake of the people, these state-owned enterprises are also ready to extend the operation cycle through long-term operation.
Naturally, they can pay for themselves, but this Indian company is completely different.
The Indian metro line generates revenue from two main sources, the first is the fare, and the second is the advertising placed by advertisers.
According to India's national conditions, major cities such as New Delhi are extremely densely populated, and fares will naturally occupy a major position in the revenue data.
However, the real situation is completely opposite, according to the company's 17~18 annual report, 60% of the subway's revenue comes from advertising, and passenger fare revenue only accounts for about 40% of it.
The local Indian people do not seem to be willing to take the subway, and the income from fares is becoming less and less.
Over time, those local advertisers don't seem to be willing to advertise anymore.
From this point of view, the operation of the subway line has completely lost two basic revenue growth points, and it is impossible to achieve positive revenue.
The low passenger volume has led to the problem of the subway company making ends meet, and it has fallen into a development dilemma.
In 2019, the company could no longer operate, and it was unable to make ends meet for a long time, which brought the company to the brink of bankruptcy.
Finally, the company also publicly announced to the public media that the express subway in the satellite city of New Delhi, India, will cease to operate, which also attracted the attention of the local people.
Of course, the people of India are not concerned about the suspension of the subway or whether there will be a company to take over and maintain normal operations.
After all, most people don't use it as their main commuting and travel choice, and they probably just have the mentality of watching and having fun.
brief summary
In order to achieve better social benefits and solve the problem of traffic congestion, the Indian side decided to expand the metro network on a large scale.
Although the construction of subway lines in India has been very rapid in recent years, there are many problems in the operation of some subway lines, and the biggest problem is that not too many Indian people are willing to take the subway.
This is also due to the preconceived notions and low level of education of the Indian people.
All in all, it seems that the situation on the Indian side does not apply to the construction of the metro.
The Indian government still needs to redefine the actual economic and social benefits of the subway in the subsequent development, and fully take into account the national conditions of the country.
The benefits of such infrastructure should not be exaggerated and funds should not be wasted.
Resources:
1. Shoot according to reason 2024.1.4 "India's subway has tripled in ten years, why don't ordinary people take it?" Huge waste caused by over-investment》
2. Power Observation Room 2019.9.15 "The Indian Metro, which cost 145 billion rupees, went bankrupt in only 6 years because not many people were willing to take it"