Russian President Vladimir Putin has underlined the importance of the International North-South Transport Corridor (INSTC) as Moscow seeks stronger transport and trade links with India and other Asian partners. The route gives India access to Central Asia and Russia without passing through Pakistan, while offering a shorter and cheaper alternative for cargo movement.
Putin discussed the corridor while addressing the Valdai Forum. He said Russia had tested a Chinese container ship and a South Korean vessel and was in discussions with its Indian partners. He also made clear that the North-South route depends on the participation and readiness of several countries.
How the corridor works
The INSTC is a 7,200-kilometre multimodal transport network. It links the Indian Ocean and the Persian Gulf with the Caspian Sea and then extends towards Russia and northern Europe through St Petersburg.
Cargo from India can travel by sea to Iran, including Bandar Abbas and Bandar-e Anzali. From there, goods can move across the Caspian Sea or continue by road and rail towards southern Russia. The route connects Mumbai with destinations including Astrakhan, Moscow and St Petersburg.
The network combines maritime shipping, rail transport and road freight. Its participating countries include India, Russia, Iran, Azerbaijan, Belarus, Bulgaria, Armenia, Kazakhstan, Kyrgyzstan, Oman, Tajikistan, Turkey and Ukraine. Azerbaijan joined the project after the initial agreements signed by India, Russia and Iran in 2002. The agreement was eventually approved by 13 countries.
Why India sees value in the route
The corridor's central purpose is to reduce freight costs and journey times between India and Russia. Compared with the traditional Suez Canal route, the INSTC is described as 30% shorter and 30% cheaper for relevant cargo movement.
A journey to Russia that generally takes 40 to 60 days through the Suez Canal is estimated to take 16 to 21 days through the INSTC. The project is also expected to reduce the journey time by about half once it becomes fully operational.
For Indian exporters, the route provides another connection to Russia, Central Asia and European markets. It could also reduce exposure to delays and attacks affecting shipping through the Red Sea and the Suez Canal, according to an ICRIER policy brief cited in the report.
Progress and obstacles
India has played an important role in bringing Iran, Russia, Central Asian countries and Bulgaria together for discussions linked to the project. The first commercial consignment using the corridor began in July 2022, which was described as a significant milestone.
Putin said Russia was ready to provide credit resources for the project. He added that Iran still had work to complete. Part of the corridor runs through Azerbaijan, and he said Moscow was in contact with President Ilham Aliyev and that Azerbaijan had agreed to the arrangement.
The route also faces difficult regional conditions. The report points to the Russia-Ukraine war and conflict involving Iran, the United States and Israel as security concerns for the area through which the network passes.
Conclusion
The INSTC offers India a direct multimodal link to Russia, Central Asia and northern Europe while avoiding Pakistan. Its promised advantages are shorter transit times and lower freight costs, but its wider use depends on unfinished infrastructure and regional security.
Frequently Asked Questions
Q. What is the INSTC?
The International North-South Transport Corridor is a multimodal network using ships, railways and roads to connect South Asia with Russia and northern Europe through Iran.
Q. How long is the INSTC?
The corridor is 7,200 kilometres long.
Q. Does the INSTC pass through Pakistan?
No. The route gives India access to Central Asia and Russia without transit through Pakistan.
Q. How long can cargo take through the INSTC?
The journey is estimated at 16 to 21 days, compared with 40 to 60 days through the Suez Canal route.
Q. How much cheaper is the corridor?
Freight costs through the route are estimated to be 30% lower than those associated with the traditional Suez Canal route.
Q. Which countries are involved in the project?
The participating countries listed in the report are India, Russia, Iran, Azerbaijan, Belarus, Bulgaria, Armenia, Kazakhstan, Kyrgyzstan, Oman, Tajikistan, Turkey and Ukraine.
Q. When did the first commercial consignment use the INSTC?
The first commercial consignment began moving through the corridor in July 2022.
Q. What is delaying the corridor's full operation?
The report says Iran still has work to complete, while security conditions linked to conflicts in the region also remain a concern.
