ndia and Iran plan to step up the operationalization of the International North-South Transportation Corridor in a move to boost trade with Russia, according to Mohammad Miri, an advisor to the Chabahar Free Zone in Iran.
Following up on earlier agreements, a trial shipment to test trade links from Russia to India will be attempted in the next 6-8 months. The shipment will go through the strategically vital Chabahar Port, while an earlier shipment in 2022 went through the more established Bandar Abbas port, Indian business and financial daily newspaper Mint reported on its website.
INSTC was conceptualized in 2001 as a new trade corridor to boost economic linkages among India, Central Asia and Eastern Europe. According to a study by the Centre for Air Power Studies, an Indian think tank, numerous efforts have been made to reboot INSTC.
A dry run was conducted in 2014 in an effort to iron out problems along the corridor. After this, a draft transit and customs agreement was agreed in 2015. This was followed by another trial run of the corridor from Russia to India in 2022.
According to Miri, the previous test runs used the Bandar Abbas Port in Iran to allow the goods to reach India.
The next trial run, which is currently being planned, may go through Chabahar, where India operates berths in the Shahid Beheshti Terminal.
In an effort to develop this new route, Iranian officials have also proposed linking free trade zones of Chabahar and an Indian port to make trade easier.
The proposal was made by the managing director of the Chabahar Free Trade Zone in a meeting with Indian Ambassador to Iran Rudra Gaurav Shresth this week.
A top level ministerial meeting is planned in January 2024 in Chabahar to push this operationalization forward. India has also hosted regional countries for “Chabahar Day" meetings in the past.
The principal difficulty with pushing INSTC forward will be the strict sanctions imposed on both Iran and Russia by the West.
Shresth paid a visit to Chabahar Port on July 14, marking his first visit to the port since assuming the charge as envoy. This was the top envoy’s first visit outside Tehran since presenting his credentials to Iranian President Ebrahim Raisi earlier this month, News18 reported.
According to observers, the choice of Chabahar as Shresth’s first port of call highlights the importance India places on the development of the port.
During the visit, Shresth met senior officials of Chabahar Port, including General Director of Port Engineer Adhari and Governor of Chabahar Javad Sepahi, at the India Global Port Limited office outside Shahid Beheshti Terminal which is operated by India. He also met other senior officials of Chabahar Port’s International Affairs Department.
IGPL, a government of India-owned company, is operating the Shahid Beheshti Terminal. IGPL MD Sunil Mukundan was also present at the meeting which was also attended by other diplomats of the Indian Embassy.
Located in the Sistan-Baluchestan Province on the energy-rich Iran’s southern coast, Chabahar Port is being developed by India, Iran and Afghanistan to boost connectivity and trade ties.
The Shahid Beheshti Terminal at Chabahar is India’s first overseas port project and has been touted as a possible gateway for India to trade with Europe, Russia and Commonwealth of Independent States countries.
