International North-South Economic Corridor

1. By- Rohit Yadav
MBA-IB
3RD Semester

2.  Brief History:- In 2000, India , Russia & Iran signed an
agreement on INSTC.
 Multimodal transportation corridor : Rail , Road & Ship.
 Connect India with Russia and Europe via Iran.
 Linking Indian Ocean and Persian Gulf to the Caspian Sea
through Iran.
 Once Operationalised , INSTC will substantially reduce
time taken and cost for transportation of goods.

3. 1. India 8. Tajikistan
2. Iran 9. Kyrgyzstan
3. Russia 10. Oman
4. Azerbaijan 11. Syria
5. Kazakhstan 12. Ukraine
6. Armenia 13. Turkey
7. Belarus
 Bulgaria (observer)
 Turkmenistan currently is not a formal member but is
likely to have road connectivity to the corridor.

4. bandar
e
anzali

7.  The agreement establishing the North-South ITC was
signed in September 2000 , and entered into force in 2002 ,
following ratification by all three countries.
 But due to sanctions imposed on Iran.
 The renewed thrust was given to INSTC under connect
Central Asia Policy , Pronounced in 2012.
 In later years , 13 other countries joined the project.

8.  After U.S Administration of former President Barack
Obama lifted sanctions against Iran in 2015 , India wasted
no time in taking this idea forward.
 The Indian government in March 2017 approved the
signing of International Road Transport(TIR) Convention .
 This multilateral international transit treaty – Customs
convention on international transport of goods under cover
of TIR Carnets – is also referred as the TIR Convention and
functions under the auspices of the United Nation
Economic Commission of Europe (UNECE).

9.  The convention on international transport of goods under
cover of TIR Carnets is a multilateral treaty that was
concluded at Geneva in 1975 to simplify and harmonies the
administrative formalities of international road transport.
 As of today, there are 71 parties to the Convention,
including 70 states and the EU (India being the last to
sign).
 India’s participation in TIR may also facilitate trade with its
eastern and western neighbors.

10.  The modern day INSTC is a multi-modal transportation
route linking Indian Ocean and Persian Gulf to the Caspian
Sea via Iran , and then onwards to northern Europe via St.
Petersburg in Russia.
 The route primarily involves moving freight from India ,
Iran , Azerbaijan and Russia via ship , rail and road.
 Major cities to be connected such as Mumbai , Moscow ,
Tehran , Baku , Bandar Abbas (Iran) , Astrakhan(Russia) ,
Bandar - e – Anzali (Iran).

11.  The Suez Canal route takes 45-50 days, whereas the INSTC
would take 25-30 days.
 Various studies - 30% cheaper and 40% shorter than the
current traditional route.
 For Russia , this is particularly important , in terms of
sanctions introduced by Western countries .
 In nautical miles , Suez canal route is approx. 8500nm
whereas INSTC route is just 4500nm.
 Future prospect s : Chahbhar Port ; South - East Asia
Linkage