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.

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