Russia for the first time sent two trains laden with coal through the International North-South Transport Corridor (INSTC) to India.
International North-South Transport Corridor
- INSTC is a 7,200-kilometer Multimode Transit Route linking the Indian Ocean and the Persian Gulf to the Caspian Sea via Iran and onward to northern Europe via St. Petersburg in Russia.
- It connects ship, rail, and road routes for moving cargo between India, Iran, Azerbaijan, Russia, Central Asia, and Europe.
Origin
- It was launched on 12th September 2000 in St. Petersburg, by a trilateral agreement signed by Iran, Russia and India at the Euro-Asian Conference on Transport in 2000 for promoting transportation cooperation among the Member States.
Ratification
- Since then, INSTC membership has expanded to include 10 more countries (total 13)-Azerbaijan, Armenia, Kazakhstan, Kyrgyzstan, Tajikistan, Turkey, Ukraine, Syria, Belarus, and Oman.
Routes and Modes
- Central Corridor: It begins from the Jawaharlal Nehru Port in Mumbai and connects to the Bandar Abbas port (Iran) on the Strait of Hormuz. It then passes through the Iranian territory via Nowshahr, Amirabad, and Bandar-e-Anzali, runs along the Caspian Sea to reach the Olya and Astrakhan Ports in Russia.
- Western Corridor: It connects the railway network of Azerbaijan to that of Iran via the cross-border nodal points of Astara (Azerbaijan) and Astara (Iran) and further to Jawaharlal Nehru port in India via sea route.
- Eastern Corridor: It connects Russia to India through the Central Asian countries of Kazakhstan, Uzbekistan, and Turkmenistan.
Significance of INSTC for India
Diversification of Trade Routes
- INSTC allows India to bypass chokepoints like the Strait of Hormuz and the Red Sea (Suez Canal route), making its trade more secure.
- The Israel-Hamas conflict and the Houthi attacks on ships in the southern Red Sea have highlighted the significance of having alternative trade routes.
- Through this India can bypass Pakistan and unstable Afghanistan to reach Central Asia.
Enhanced Connectivity with Central Asia
- It connects India to markets in Russia, the Caucasus, and Eastern Europe, facilitating trade, energy cooperation, defense, counterterrorism, and cultural exchanges with Central Asian Republics through initiatives like “Connect Central Asia”.
- The INSTC significantly reduces transit time by 20 days and freight costs by 30% compared to the Suez Canal route.
Energy Security
- The INSTC facilitates India’s access to energy resources in Russia and Central Asia and can reduce reliance on the Middle East.
- Since the Russia-Ukraine war, imports of metallurgical coal from Russia have tripled, and are expected to grow amid declining imports from Australia.
Strengthening Ties with Iran and Afghanistan
- India has invested in the Chabahar Port in Iran’s Sistan-Balochistan province and signed an agreement for the INSTC, aiming to facilitate trade with Central Asian countries.
- Chabahar Port is essential for India, Iran, and Afghanistan as it offers direct sea access and trade opportunities in the region.