INSTC is a 72,00 km multimodal transit route linking the Indian Ocean & onward to Northern Europe via St. Petersburg in Russia. It connects ships, rail & road routes for moving cargo between India, Iran &Azerbaijan, Russia, Central Asia & 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 (a total of 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, and 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.
According to Economics Times, the Russian railway told on its Telegram channel that The Yerens had departed from the Merovingian region for India. They have travelled through Kazakhstan and Turkmenistan to reach the Iranian port of Bandar Abbas along the eastern branch of INSTC. The Yerens will reach India.
Importance :
• INSTC connects Russia to India through Iran's Chabahar port. This is very important for India's trade. Russia is facing restrictions on sea trade due to the Ukraine war, in such a situation the economic and strategic importance of this corridor increases even more. At the same time, its importance for India is because India sees it as an alternative to China's ambitious Belt and Road initiative.
• India is still mostly dependent on coal for electricity production despite its efforts to increase the number of renewable energy initiatives. According to Russian Railways, shipping by the INSTC from Russia to India takes about 23 days, which is much less time than shipping via the Suez Canal, which can take up to 45 days.
• Earlier, Russian President Vladimir Putin stated that Moscow is aiming to establish regular freight shipping lines and guarantee interconnectivity across the INSTC. Over the next seven years, the quantity of products shipped via the INSTC is anticipated to nearly triple. The Russian leader has proposed a logistics hub for the corridor along the African coast.
• That said, the recent coal delivery comes days after India indicated it was planning to import coking coal from Russia and other Central Asian countries via Iran’s Chahabar Port. Currently, coal from Russia comes to India via the Red Sea route. Previous reports suggested that the movement would likely begin in the Financial Year 2025.
• INSTC will enable Indian traders to reach Central Asia more easily and cost-effectively. Experts believe it will enhance India's reach to countries like Iran, Russia, Azerbaijan and the Baltic and Nordic.
• This corridor will become an alternative to the Suez Canal route
According to a BBC report, about 12 per cent of global trade, one million barrels of oil and 8 billion barrels of liquefied natural gas pass through the canal daily. The Israel-Hamas conflict has made this route vulnerable. In such a situation, the INSTC corridor can be an important multi-strategic tool, which India needs to increase its trade in Central Asia.
Challenges:
1. Infrastructure: Developing and upgrading transport infrastructure in each participating country, especially in less developed regions.
2. Logistics and Coordination: Ensuring smooth logistics operations across different modes of transport and national boundaries.
3. Geopolitical Factors: INSTC's success is influenced by geopolitical tensions and international sanctions affecting some of the member countries.
Our news media partner, Swati Chaurasiya, crafted and curated this news.
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