The International North-South Transport Corridor (INSTC) is recognized
as gateway for India to make bigger trade and investment links by Central Asia
and Eurasia. Its significance was
highlighted in India’s Foreign Trade Policy of India 2015-20. On the other hand,
in recent times it gained importance in light of the evolving geopolitical
developments of India after Prime Minister Narendra Modi’s visit to 5 Central
Asian Countries viz Uzbekistan, Kazakhstan, Turkmenistan, Kyrgyzstan and
Tajikistan. It will connect Mumbai (India) via Chabahar and Bandar Abbas ports
of Iran with Baku (Azerbaijan) to Moscow (Russia) and other countries in
Central and Eastern Europe via the Caspian Sea.
Economic Integration
help in facilitating India’s economic integration with Eurasian economies and
other countries in surrounding regions. If India partners with Eurasian
Economic Union (EEU), it will further boost and expand its economic, trade and
investment opportunities in more countries in this region. International North-South
Transport Corridor (INSTC) It is a multi-modal trade transport network that
includes strategic rail, road, and water transport connecting India with
Central Asian and Eurasia Countries.
Shorter transport route will be a shorter route to transport
goods to Eurasian and Central Asian regions compared to present route via Suez
Canal and western European countries. Thus, reduce the cost of transporting
goods from India to Eurasia.
Natural resources access, India to tap the abundant natural
resources potential of Central Asian countries for its energy security. These
countries are having rich deposits of petroleum, natural gas and uranium along
with deposits of fertilizer inputs such as potash.
Implications For India, the INSTC will be strategically
important trade corridor of tremendous promise that could help to develop its
economic and strategic importance in Eurasia and Central Asia. It could also
give India economic and strategic relevance to tackle regional ambitions of
China through its One Belt, One Road Initiative.
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