The INSTC is once again in focus due to geopolitics – primarily the US led sanctions on Russia in the context of the ongoing conflict in Ukraine and the shipping attacks in the Red Sea amidst the ongoing Israel-Hamas conflict. [...] The transport of goods between India, the Russian Federation, and CIS countries mostly takes place via the sea route passing through the Suez Canal to access either port Novorossiysk in the Black Sea basin or the Baltic Sea port of St. [...] The Chabahar Port in Iran is a key node that connects all Members of the INSTC and is perhaps more important than the Bandar Abbas Port (the original Iranian Port that was part of the INSTC) as it serves as a key access point to the eastern and western flanks of the corridor. [...] As a result, the majority of INSTC payment transactions are routed via UAE due to remittance challenges.11 Further, as the sanctions include a ban on the provision of insurance to the State of Iran and Iranian owned companies, the international insurance service providers do not participate in the INSTC sector. [...] A framework needs to be prepared by INSTC Members to develop a financing mechanism that would address the financing needs of the infrastructure projects that are crucial to the success of the working of the INSTC.
Authors
- Pages
- 20
- Published in
- India
Table of Contents
- NISHA TANEJA 1
- SANJANA JOSHI 1
- SANYA DUA 1
- ALINA SIDDIQUI 1
- Table of Contents 2
- Abstract ............................................................................................................................ i 2
- 1. Introduction ............................................................................................................... 1 2
- 2. Red Sea Attacks and Shipping Disruptions ................................................................... 1 2
- 3. INSTC An Alternative Route ........................................................................................ 3 2
- 4. Indias Export Potential in INSTC Member Countries.................................................... 6 2
- 5. Full Operationalisation of INSTC Way Forward ......................................................... 10 2
- References ..................................................................................................................... 11 2
- Appendix ........................................................................................................................ 13 2
- List of Tables 2
- List of Figures 2
- Abstract 3
- Acknowledgement 3
- Keywords 3
- INSTC export potential shipping disruptions alternative route 3
- JEL classification 3
- F1 F5 F13 F17 3
- Authors email 3
- 1. Introduction 4
- First 4
- Second 4
- 2. Red Sea Attacks and Shipping Disruptions 4
- Figure 1 Number of Commercial Ships Attacked in the Red Sea 5
- Source Armed Conflict Location Event Data ACLED 5
- Figure 2 Number of cargo ships transiting via the Suez Canal the Cape of Good Hope 5
- Source portwatch.imf.org 5
- 3. INSTC An Alternative Route 6
- Figure 3 INSTC route traditional route through the Suez Canal 6
- Source Indicative plotting by authors using Datawrapper 6
- 4. Indias Export Potential in INSTC Member Countries 9
- Figure 4 Indias Potential to Export to INSTC Member Countries 9
- Source WITS Indicative plotting by authors using Datawrapper 9
- Figure 5 Indias Exports to INSTC Member Countries 2022 and Indias Export Potential 10
- Values in USMn 10
- Source WITS 10
- Table 1 Indias Current Exports and Export Potential with INSTC Members 11
- Source WITS 11
- Table 2 Sector-wise share of Indias total exports in 2022 and export potential to INSTC countries 12
- Source WITS 12
- 5. Full Operationalisation of INSTC Way Forward 13
- References 14
- Red Sea Attacks Dashboard 14
- World Bank Blogs 14
- Iran Russia ink agreement for 14
- Port Monitor 14
- IMF 14
- St. Petersburg to Mumbai in 25 days India can now bypass the Suez 14
- Canal to reach Northern Russia 14
- Reach Europe 20 days earlier and for 30 cheaper How Chabahar 14
- Delhi Declaration of the 14
- 1st India-Central Asia Summit 14
- India flagged concerns with Russia over non-tariff barriers 15
- Commerce secy 15
- India Iran may restart rail connectivity project between Chabahar 15
- 2024 National Trade Estimate 15
- Report on Foreign Trade Barriers 15
- Dry run study on Chabahar agreement with TIR intermodal 15
- The Chabahar port and India-Iran agreement 15
- Iran Russia finalizing agreement for constructing Rasht-Astara 15
- Impact to global 15
- Transports Internationaux Routiers 15
- TIR 15
- Appendix 16
- Appendix 1 16
- Appendix 2 17
- Table A.2.1 Indias top 10 Sector-wise Potential with INSTC Countries Values in US Mn 17
- Table A.2.2 Indias top 10 Sector-wise Potential with INSTC Countries Values in US Mn 18
