India's Gateway to Eurasia: Understanding the INSTC and Chabahar Port

The International North-South Transport Corridor (INSTC) and the Chabahar Port represent pivotal pillars in India's geostrategic and economic outreach to Eurasia and beyond. These ambitious projects aim to revolutionize trade routes, reduce transit times and costs, and forge stronger connectivity, bypassing traditional and often challenging pathways.

The International North-South Transport Corridor (INSTC) is a 7,200 km multi-modal network of railways, roads, and sea routes. Initiated in 2000 by India, Iran, and Russia, with numerous other countries joining subsequently (including Azerbaijan, Kazakhstan, Armenia, Belarus, Tajikistan, Kyrgyzstan, Oman, Syria, Turkey, Ukraine, and Bulgaria as an observer), its primary objective is to facilitate the movement of freight between India, Central Asia, Russia, and Europe. Compared to the traditional Suez Canal route, the INSTC promises to significantly reduce transit time by 40% and costs by 30%. This translates to goods reaching Moscow from Mumbai in approximately 19 days, as opposed to 32-37 days via the Suez Canal.

The route generally begins at India's western ports (like Mumbai and Kandla), traverses the Arabian Sea to Iran's Bandar Abbas, then moves overland via rail and road through Iran to the Caspian Sea (Bandar-e Anzali or Amirabad), and finally by sea to Astrakhan in Russia, from where it extends to Europe. A key component still under development is the Rasht-Astara railway line in Iran, which will provide uninterrupted rail connectivity between Russia and Iran. The eastern branch of the INSTC, utilizing railways through Kazakhstan and Turkmenistan to Iran, has also seen increased activity.

Complementing the INSTC is the strategically vital Chabahar Port in Iran. Located on the Gulf of Oman, it is Iran's only deep-water port with direct access to the Indian Ocean. For India, Chabahar holds immense significance, primarily offering a direct and reliable gateway to landlocked Afghanistan and Central Asian markets, bypassing Pakistan. India's involvement in the port dates back to 2002, with a long-term agreement signed in May 2023 for India Ports Global Limited (IPGL) to manage the Shahid Beheshti terminal for 10 years. India has invested significantly in developing the port, including supplying equipment and offering a credit window for infrastructure development. The port's capacity is slated for substantial expansion, with plans to connect it to the Iranian railway network by mid-2026.

The synergy between the INSTC and Chabahar Port is profound. Chabahar serves as a crucial southern entry point into the INSTC network, further enhancing India's access to the wider Eurasian region. This integrated approach not only boosts trade and economic cooperation but also holds significant geopolitical implications, allowing India to diversify its trade routes and strengthen its strategic presence in the region, particularly in response to other connectivity initiatives.

Despite their immense potential, both projects face challenges. Geopolitical complexities, including international sanctions on Iran and regional instability, have historically slowed progress. Funding issues and the need for seamless customs and logistical coordination among member countries also remain crucial. However, recent developments, including increased cargo movement and renewed commitment from participating nations, indicate a strong push towards realizing the full potential of these transformative corridors, paving the way for a more integrated and efficient trade landscape across Eurasia.