bring Eurasia closer

Last week, RailFreight.Com reported that two 40-foot containers of wooden laminate sheets crossed the Caspian Sea from Russia’s Astrakhan port, entered Iran’s Anjali port, on their southward journey toward the Arabian Sea. Continuing, the monkeys enter the waters at Abbas and eventually reach Nhava. Shiv port in Mumbai. The visit marked the launch of the International North South Transport Corridor (INSTC), a 7,200-km multi-modal transport corridor linking road, rail and sea routes connecting Russia and India through Central Asia and Iran . The corridor is expected to strengthen the emerging Eurasian Free Trade Area.

What will INSTC do

The launch of INSTC provides the missing pieces of the puzzle regarding India’s refusal to condemn Russia’s invasion of Ukraine. India’s decision was then explained in the context of its military dependence on Russia, its objective to have open alternative supplies of precious oil and gas, and its legacy of non-alignment. What has been overlooked is India’s brewing investments in intercontinental infrastructure, indicated by its participation in the INSTC with Russia and Iran, both subject to sanctions by Western governments.

The legal framework for INSTC is provided by a tripartite agreement signed by India, Iran and Russia at the Euro-Asian Conference on Transport in 2000. Since then Kazakhstan, Belarus, Oman, Tajikistan, Azerbaijan, Armenia and Syria have signed instruments of accession. To become a member of INSTC. Once fully operational, INSTC is expected to reduce freight cost by 30% and travel time by 40% as compared to the traditional deep sea route via the Suez Canal. Indeed, the need for an alternative route was deeply felt last year, when the Ever Given container ship sank in Suez, halting maritime traffic between the Mediterranean Sea and the Red Sea.

India’s investment in INSTC is exemplified by its participation in Iran’s Chabahar Port and the construction of the 500-km Chabahar-Zahedan railway line. Once completed, this infrastructure will allow India access to Afghanistan and Central Asia, a possibility strengthened by the Taliban government’s support for the project. India Ports Global Limited, a joint venture between Jawaharlal Nehru Port Trust and Kandla Port Trust, will develop the port along Aria Bandar in Iran. IRCON International will contribute to the construction of the railway line. A Special Economic Zone around Chabahar would provide opportunities for Indian companies to set up a wide variety of industries; For example, NALCO proposes to set up an aluminum smelter. The loan assistance to Iran will be provided by Exim Bank. INSTC, thus, provides an opportunity for internationalization of the infrastructural state of India, with state-run businesses taking the lead and paving the way for private companies.

Non-alignment for multi-alignment

For India, INSTC achieves many things at once. First, India can now bypass Pakistan to reach Afghanistan, Central Asia and beyond. Second, the INSTC could shape a north-south transport corridor that could complement the east-west axis of the China-led Belt and Road Initiative (BRI).

INSTC was launched by the Quad Summit held in May 2022, in which the leaders of the Quad re-emphasised the principles of a free and open Indo-Pacific. The declaration of the Quad Summit goes beyond outlining commitments to freedom, the rule of law and territorial integrity to reinforce a central objective of the collective – to provide public goods to the region. New initiatives were announced designed to deepen cooperation across the region, including maritime security, climate change and regional infrastructure.

India’s founding role in both INSTC and Quad exemplifies the departure from non-alignment to multi-alignment. INSTC provides a platform for India to have closer cooperation with Russia, Iran and the Central Asian Republics. Its two partners are subject to Western sanctions, this has not stopped India from cooperating with the US, Japan and Australia as part of the Quad to build and protect a free and open Indo-Pacific. Indian policy-making in international affairs has often been criticized for moral indecision, diplomatic austerity and ideological confusion. These critics fail to see the subtle shifts in Indian foreign policy from non-alignment to multi-alignment.

INSTC has received very little media attention as compared to initiatives like Quad, BRI and New Development Bank. However, as a transcontinental multi-modal corridor that aims to bring Eurasia together, INSTC is a laudable initiative in itself. This helps India strengthen its multi-alignment strategy which adds sweetness to the deal.

Indrajit Roy is Senior Lecturer-Global Development Politics, Department of Politics, University of York