India is in talks with China to upgrade its railway system, which was built largely by the British during the 19th century.

The two countries are discussing jointly building India’s first high-speed railway, a 1,754km track from Delhi to Chennai; this would cost $32.6 billion and see trains travelling at speeds up to 300kph.

Chinese officials have agreed to shoulder the full cost of the initial study; and if the project goes ahead, China Railway Construction (CRCC) will provide newly designed railway tracks, automated signalling equipment and modern stations.

China has been pushing to expand its high-speed rail business overseas; CRCC recently signed a $12 billion contract to build a coastal line in Nigeria.

Zhang Xiangchen, China’s assistant commerce minister, said: “International markets — especially Latin America, Africa, South East Asia and eastern Europe — still need many products. China’s ODI (overseas direct investment) is essential for them to gain funds, technologies, human resources and development experience.”