International North South Transport Corridor (INSTC): Bringing Eurasia closer

Source: This post is based on the article “Bringing Eurasia closer” published in The Hindu on 1st August 2022.

Syllabus: GS 2 – Bilateral, regional and global groupings and agreements involving India and/or affecting India’s interests.

Relevance: About the International North South Transport Corridor (INSTC).

News: Recently, two 40-ft containers of wood laminate sheets from Russia’s Astrakhan port crossed the Caspian Sea and eventually reach Nhava Shiva port in Mumbai. The journey signalled the launch of the International North South Transport Corridor (INSTC).

What is INSTC?

It 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.

What is the significance of INSTC?

1) The INSTC is expected to reduce freight costs by 30% and the journey time by 40% in comparison with the conventional deep sea route via the Suez Canal, This is significant as a container ship was stuck in the Suez last year, halting maritime traffic between the Mediterranean Sea and the Red Sea, 2) INSTC can shape a north-south transport corridor that can complement the east-west axis of the China-led Belt and Road Initiative (BRI).

What is the significance of INSTC to India?

1) India can now bypass Pakistan to access Afghanistan, central Asia and beyond, 2) 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.

What does India’s engagement in INSTC and Quad signify?

India’s founding role in both the INSTC and the Quad exemplifies its departure from non-alignment to multi-alignment.

The INSTC offers a platform for India to closely collaborate with Russia, Iran and Central Asian republics. INSTC’s major players Russia and Iran are subject to sanctions by Western governments.

On the other hand, Quad members of the U.S., Japan and Australia aim to create and safeguard a free and open Indo-Pacific.

Overall, the INSTC is a laudable initiative as a transcontinental multi-modal corridor that aims to bring Eurasia closer together. Further, India’s membership in INSTC consolidates India’s multi-alignment strategy.