The International North-South Transport Corridor: The Prospects and Challenges for Connectivity between Russia and India

Abstract

Connectivity has been one of the most challenging issues for developing trade cooperation between Russia and India. Due to the geographic distance separating the two nations, along with the unstable security environment in Afghanistan and border disputes between India and Pakistan, the creation of a direct and shortest transport route has proven difficult, thereby rendering it impossible to implement crucial projects in energy infrastructure.

This paper briefly outlines the functioning logistics between Russia and India, which has relied primarily on shipping through the Suez Canal, with an emphasis on the developments in the wake of conflict in Ukraine. The author briefly explores the prospects for maritime connectivity between the Russian Far East and Indian ports, and highlights several challenges for launching a regular Vladivostok-Chennai corridor.

The US and European sanctions against the Russian economy, combined with subsequent difficulties in transporting goods by sea, has reinvigorated Russia's efforts to complete the International North-South Transport Corridor (INSTC). This corridor holds significant potential for Russia to expand its reach to India, the Persian Gulf, and East Africa. Additionally, it is believed that the project may facilitate India's connectivity with countries in the Caucasus, Central Asia, and Eastern Europe. Therefore, this paper particularly examines the case of the land corridor, exploring its current progress in implementation, the geoeconomic factors involved, existing challenges, and opportunities for compatibility with other initiatives, such as the Europe-Caucasus-Asia Transport Corridor (TRACECA), the Belt and Road Initiative (BRI), and the Chabahar port.

The author argues that, although the implementation of connectivity projects between the two countries will not solve structural problems in their trade relationship, both have a vested interest in promoting infrastructure development for a deeper engagement with new regions. To qualitatively boost Russian-Indian trade, affordable logistical solutions should be developed simultaneously with the resolution of other issues like the settlements for financial transactions, and the elimination of tariff and non-tariff barriers.