India and the Northern Sea Route

Source: The post is based on the article “India and the Northern Sea Route” published in The Hindu on 25th August 2023.

Syllabus: GS2- Bilateral, regional and global groupings and agreements involving India and/or affecting India’s interests.

News: The article talks about India’s increasing role in Arctic’s Northern Sea Route (NSR) for cargo. It covers Arctic’s significance for India, Russia’s nuclear icebreakers for NSR, and India’s involvement due to the Chennai-Vladivostok Maritime Corridor project.

Why is the Arctic region significant to India?

Historical Engagement: India’s ties with the Arctic date back to the signing of the Svalbard Treaty in 1920. India also established a research station in the Arctic in 2008 and became an observer-State of the Arctic Council in 2013.

Climate Impact: Changes in the Arctic climate can influence India’s economic security, water security, and sustainability.

Resource Potential: The Arctic might contain over 40% of global oil and gas reserves, along with reserves of coal, zinc, and silver.

Trade Route: The Northern Sea Route (NSR) in the Arctic offers a shorter shipping route between Europe and Asia-Pacific, potentially saving up to 50% in distance.

Economic Benefits: In 2023, India’s cargo traffic at the Arctic’s Murmansk port was 35% of eight million tonnes.

What is NSR (Northern Sea Route)?

Definition: The Northern Sea Route (NSR) is the shortest shipping route for freight transportation between Europe and Asia-Pacific countries.

Location: The NSR spans four seas of the Arctic Ocean, starting at the boundary between the Barents and the Kara seas (Kara Strait) and ending in the Bering Strait (Provideniya Bay).

Distance: The route measures 5,600 km in length.

Recent Events: The 2021 blockage of the Suez Canal highlighted the NSR’s significance as an alternative maritime route.

Navigation Challenges: The Arctic Ocean remains icebound for most of the year, requiring icebreaking assistance for safe navigation.

What are the driving factors for India to participate in the NSR development?

Cargo Traffic Growth: Cargo traffic along the NSR experienced a surge of around 73% from 2018-2022, with a volume of 34.117 million tonnes in 2022.

Energy Imports: India’s increasing imports of crude oil and coal from Russia are facilitated by the NSR’s reliability and safety.

Geographical Benefits: India’s major trade depends on sea transportation. The NSR offers a more efficient route, enhancing India’s trade potential.

Chennai-Vladivostok Corridor: The Chennai-Vladivostok Maritime Corridor (CVMC) could link with the NSR, shortening transport time. The CVMC is 10,500 km, a significant reduction from the 16,000 km St. Petersburg-Mumbai route.

Strategic Considerations: With potential collective influence from China and Russia over the NSR, India’s involvement can ensure balanced regional dynamics.

What lies ahead?

NSR Development Plan: Russia’s plan for the NSR targets a cargo traffic of 80 million tonnes by 2024 and 150 million tonnes by 2030.

Russian Collaboration: A Russian delegation met with the Indian business community, discussing the NSR development. They promised to provide key components for the route’s year-round operation.

Indian Company Involvement: Rosatom is encouraging Indian companies to participate in projects related to the NSR.

CVMC Project: A workshop involving stakeholders from India and Russia for the Chennai-Vladivostok Maritime Corridor (CVMC) project is scheduled for October.

Economic Context: All these developments are unfolding against the backdrop of Western economic sanctions on Russia, which might influence strategic and economic collaborations.

These developments indicate India’s continued interest and involvement in Arctic and NSR projects.