Iran starts transfer of Russian goods to India by using new trade corridor

Tags: International News

Iran started its first transfer of Russian goods to India, using a new trade corridor that transits the Islamic Republic. 

• The cargo will pass through the International North-South Transport Corridor (INSTC).

• The cargo ship left St. Petersburg for the Caspian Sea port city of Astrakhan.

• It will reach the northern Iranian port of Anjali and then by road to the southern port of Bandar Abbas on the Persian Gulf.

• From Bandar Abbas it will reach India by ship at Jawaharlal Nehru Port Trust (JNPT).

• International North–South Transport Corridor (INSTC)

• It is a multi-modal transport established by Iran, Russia and India on 12 September 2000 in St Petersburg.

• It is a 7,200 kilometre long multi-mode network of shipping, rail and road transport for freight.

• India, Iran, Afghanistan, Azerbaijan, Russia, Central Asia and Europe are involved in the corridor.

• Its main purpose is to promote transportation cooperation among the Member States.

• It connects the Indian Ocean to the Caspian Sea via the Persian Gulf to Russia and northern Europe.

• Significance of INSTC

• It aims to reduce the cost of movement of goods between India and Russia by about 30 percent and reduce transit time by more than half.

• It will provide an alternative connectivity initiative to countries in the Eurasian region.

• It has the potential to transform countries' economies into specialized manufacturing, logistics and transit hubs.

• It opens a sustainable alternative route for India to trade with Afghanistan and Central Asia.