[Answered] What is International North-South Transport Corridor (INSTC)? How INSTC can help India consolidate its multi-alignment strategy?

International North-South Transport Corridor (INSTC) is a 7,200-km multi-modal transport corridor that combines road, rail and maritime routes connecting Russia and India via Central Asia and Iran. The corridor is expected to consolidate the emerging Eurasian Free Trade Area. The legal framework for the INSTC is provided by a trilateral agreement signed by India, Iran and Russia at the Euro-Asian Conference on Transport in 2000.

INSTC includes 13 countries namely India, Iran, Russia, Turkey, Armenia, Azerbaijan, Belarus, Kazakhstan, the Kyrgyz Republic, Tajikistan, Oman, Syria, and Ukraine. Once fully operational, the INSTC is expected to reduce freight costs by 30% and journey time by 40% in comparison with the conventional deep sea route via the Suez Canal.

How INSTC can help India consolidate its multi-alignment strategy?

• Once completed, this infrastructure will allow India access to Afghanistan and central Asia.
• A special economic zone around Chabahar will offer Indian companies the opportunity to set up a range of industries; for example, NALCO proposes to set up an aluminium smelter. Lines of credit will be extended to Iran by Exim Bank.
• The INSTC, thus, provides an opportunity for the internationalisation of India’s infrastructural state, with state-run businesses taking the lead and paving the way for private companies.
• The INSTC offers a platform for India to closely collaborate with Russia, Iran and Central Asian
• The India Ports Global Limited, a joint venture between the Jawaharlal Nehru Port Trust and Kandla Port Trust, will develop the port along with Iran’s Aria Banader. IRCON International will contribute to constructing the railway line.
• INSTC can shape a north-south transport corridor that can complement the east-west axisof the China-led Belt and Road Initiative (BRI).
• India’s founding role in both the INSTC and the Quad exemplifies its departure from non-alignment to multi-alignment.

There is certainly a long way to go before India could be designated as one of the most consequential actors in Central Asia. However, initiatives like INSTC show it is on the right track. India must ensure that the current momentum is maintained.