INSTC operationalised as Russia sends consignments for Indian port
Iran has started shipping Russian goods to India using the International North-South Transport Corridor (INSTC).
INSTC is a multi-modal transport network. Its idea was first presented by Russia, India and Iran in the year 2000. Its aim is to promote transport cooperation among the member countries.
INSTC first connects the Indian Ocean and the Persian Gulf to the Caspian Sea through Iran. It is further linked to St Petersburg and Northern Europe via Russia.
Currently, it has 13 members: India, Iran, Russia, Azerbaijan, Armenia, Kazakhstan, Belarus, Turkey, Tajikistan, Kyrgyzstan, Oman, Ukraine and Syria.
Importance of INSTC for India:
- Will reduce the transportation cost of goods between India and Russia by about 30%.
- It will almost halve the time taken for transport between India and Russia (compared to the time taken via the Suez Canal).
- This corridor will help India gain easy access to Central Asia and beyond. Apart from this, it will also help in expanding trade and investment linkages.
- Reduce dependence on existing trading partners (especially existing energy connectivity). This will be made possible by the reorganization of supply chains.
- It is also being seen as an Indian response to China’s Belt and Road Initiative (BRI).
Other proposed corridors connecting India with Russia and Europe
- Chennai-Vladivostok Maritime Corridor: It will connect India and Russia.
- India’s Arab-Med Corridor: It will connect India to mainland Europe via the Greek port of Piraeus and the Middle East.
Source – The Hindu