The two nations have decided to work together to complete this missing link. When ready, the INSTC will allow commerce in products to occur between India and St. Petersburg in northeastern Russia through Azerbaijan and Iran.
Source: The National
The multi-modal, 7,200 km-long corridor has sea routes, rail lines, and highways. India, Iran, and Russia came up with the idea for the INSTC more than 20 years ago. The connection project has been put off because of a lack of money, western sanctions against Iran, and raging hostilities in the Caucasus, among other things.
The INSTC has the potential to significantly alter not only the economies of the three original members, but also those of the more than a dozen countries that have ratified it throughout time. A more direct economic route between Russia and India is envisioned. It takes 30-45 days to transport goods between the two countries using the present routes.
By cutting that period of time to just around 10 days, the INSTC will reduce trade expenses. Additionally, it will increase trade between India and Western Europe. The Chabahar deep-sea port in Iran, developed by India, would be utilised by the INSTC, increasing the viability of that project.
The influence of the INSTC will extend beyond trade time and costs to include global geopolitics. Russia and Iran will benefit from the decrease in reliance on the US-controlled Red Sea marine route as well as some respite.Within three years, construction of the Rasht-Astara railway line is anticipated to be finished.
Source: Hindustan Times
Although there is a lot of enthusiasm and expectation in the air, there remain significant obstacles. The economies of Russia and Iran are both in poor shape. Both are fighting against sanctions from the West. The war in Ukraine is hurting the Russian economy. Importantly, the INSTC faces formidable opposition since it offers other trade routes to the Belt and Road Initiative, the China-Pakistan Economic Corridor, and the US-controlled Red Sea route.
There has been a lot written about the rivalry between the ports of Chabahar and Gwadar. This contest is expanded by the INSTC. The foreign ministers of China, Pakistan, and Afghanistan have decided to include Afghanistan in the CPEC. While INSTC will stay out of Afghanistan’s unrest and instability, China is certain to cause problems for the organisation. To ensure the success of INSTC, India, Iran, and Russia will need to work together.
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