Context:

• Armenia is looking forward to early linkages between the International North South Transport Corridor (INSTC) and the Chabahar Port for seamless connectivity.

More on News:

• Armenia is in talks to join Iran’s Chabahar Port as it seeks access to India and other Asian nations.
• This comes in the backdrop of the trilateral grouping of India, Iran and Armenia. 
  • During a meeting in Armenia this April, the three sides discussed economic projects and regional communication channels.
• Armenia has proposed the Persian Gulf-Black Sea corridor via Iran parallel to INSTC or part of a new branch of INSTC to connect Indian traders with Russia and Europe.

About International North South Transport Corridor (INSTC):

• It is a multi-modal transportation established in 2000 in St. Petersburg, by Iran, Russia and India. 
• Purpose: It is a multi-modal transport project that spans over 7,200 kilometres and aims to ease the transportation of cargo among Afghanistan, Armenia, Azerbaijan, Russia, Central Asia, Europe, as well as India and Iran.

• Corridor: It connects the Indian Ocean and Persian Gulf to the Caspian Sea via Iran, then is connected to St. Petersburg and Northern Europe via Russia.   
  • It begins in Mumbai and goes to Bandar Abbas and Bandar-e-Anzali in Iran, then crosses the Caspian Sea to reach Astrakhan, Moscow, and St. Petersburg in Russia.
• The member countries of the INSTC include India, Iran, Russia, Azerbaijan, Armenia, Kazakhstan, Kyrgyztan, Tajikistan, Turkey, Ukraine, Belarus, Oman, Syria, with Bulgaria as the observer state.  

Significance of INSTC for India:

• As per Federation of Freight Forwarders’ Association of India (FFAI), INSTC will make cargo transportation 30% cheaper and 40% faster vis-a-vis the traditional transportation route of the Suez Canal. 
  • Transit time of around 45 to 60 days for cargo shipment from Europe to India via the Suez Canal will be reduced to merely 23 days through INSTC.
• Potential to unlock economic growth, foster cooperation among member nations, and open up new avenues for international commerce.
  • Since the beginning of the Russia-Ukraine war, India’s trade with Russia has increased manifold via the INSTC.
• Energy Security: It will also facilitate access to hydrocarbons and other mineral resources from Central Asia.
• INSTC could help India attract a significant portion of the export-oriented manufacturing activities that are looking to move out of China.

About Persian Gulf-Black Sea Corridor:

• Proposed corridor is expected to connect Mumbai with the port city of Bandar Abbas in Iran before going on to Armenia and onward to Russia or Europe.
• It will run parallel to the INSTC and will bypass Azerbaijan (shares close relations with Turkey and Pakistan) which does not enjoy good ties with India. 

News Source: Economic Times