International politics before globalisation has solely centred around hard-power tactics adopted by nations. Conventional approaches to trade and the economy were limited to agriculture, naturally renewable and non-renewable resources and enriching nuclear capabilities to keep any possible full-scale conflict at bay. The countries from the soft-power perspective merely focused on cultural exchanges and economic exchanges. The start of cross-border freight train operations between Beijing and London signalled the beginning of a new diplomatic approach between countries involving technical and cultural exchange to help foster ties between countries across peripheries. Over time, there has been a drastic shift in focus of economic diplomacy, with China evoking competition post-globalisation with the establishment of 17,398 miles of high-speed rail network bringing to the fore the Sino-Japanese conflict in the global railway community by luring developing nations with the promise of high-speed rail expansion in the countries. The following paper focuses on understanding the growing cooperation of railways in the Indo-Pacific region concerning foreign direct investment and India's railway modernisation programme and challenges to railway cooperation using secondary data sources, including reports by the Japanese International Cooperation Agency, ministry reports and books.