About International North-South Transport Corridor (INSTC)

• INSTC is a land-and sea-based 7,200-km long network comprising rail, road and water routes that are aimed at reducing costs and travel time for freight transport in a bid to boost trade between Russia, Iran, Central Asia, India and Europe.
• The corridor links the Indian Ocean to the Caspian Sea via the Persian Gulf onwards into Russia and Northern Europe, and offers the shortest connectivity route between them.
• INSTC is a joint initiative taken by India, Russia and Iran by signing an Inter-Governmental Agreement in 2000.
• At present, there are 13 Members of INSTC, namely – India, Iran, Russia, Azerbaijan, Armenia, Kazakhstan, Kyrgyzstan, Tajikistan, Turkey, Ukraine, Belarus, Oman and Syria. Bulgaria has joined as an Observer State. 
• In 2022, the first shipment using the INSTC to India arrived at Jawaharlal Nehru Port in Mumbai, having originated from Russia’s Astrakhan Port.

Significance

• The INSTC is projected to reduce transit time by 40%, shortening it from 45-60 days to 25-30 days. 
• Additionally, it is expected to decrease freight costs by 30% in comparison to the Suez Canal route.
• It has the potential to enhance India’s connectivity with Central Asia and Eurasian Region and vice versa.
• As a seamless transportation and transit corridor, INSTC could help India attract a significant portion of the export-oriented manufacturing activities that are looking to move out of China.
• It will also facilitate easy and faster access to hydrocarbons and other mineral resources from Central Asia, which is mostly land-locked, supporting India’s rapidly growing economy.