India revitalizes role in International North-South Transport Corridor

The International North-South Transport Corridor (INSTC) is a trade route that was established on September 12, 2000, by Iran, Russia, and India. This 7,200-kilometer project links ship, rail, and road routes to enhance trade and connectivity among its members. Currently, the INSTC has 13 member countries, including India, Iran, and Russia. Bulgaria has joined as an observer. The corridor has three main routes: the Central, Western, and Eastern Corridor. The Central Corridor connects Mumbai’s Jawaharlal Nehru Port to Iran’s Bandar Abbas and further to Russia’s port cities. The Western Corridor links Azerbaijan’s rail network to Iran and India. The Eastern Corridor connects Russia to India through Central Asian countries. The INSTC is seen as an alternative to the Suez Canal route, potentially reducing transit times by 40% and costs by 30%. However, U.S. sanctions on Iran in 2019 made Indian companies cautious about participating in the corridor. In light of Russia's own sanctions, trade between India and Russia has increased, renewing interest in the INSTC. In April 2023, India, Armenia, and Iran agreed to promote the INSTC further. India has invested in Iran's Chabahar Port, a key link in the corridor, and signed a 10-year operational deal in May 2024. This port helps India access Central Asia without passing through Pakistan or Afghanistan. The INSTC is viewed as a significant opportunity for India to increase trade in Central Asia and Europe. Experts suggest it could serve as a strategic counter to China’s Belt and Road Initiative. India's involvement has included sending wheat aid to Afghanistan and environmentally-friendly pesticides to Iran via the port. Going forward, India aims to significantly increase its port capacity through projects like the INSTC, highlighting its potential as a game-changer in regional connectivity and trade.