The International North–South Transport Corridor (INSTC) and the Chabahar Port in Iran have become the backbone of India’s effort to secure alternative connectivity into Eurasia. These are not projects of ambition but of insurance, designed to keep the trade moving even when the maritime trade is disrupted and the markets turn uncertain, writes Rupal Mishra.
The global trading map is under pressure. The Red Sea crisis and the geopolitical disruptions near the Suez Canal have shown how easily a single chokepoint can shake up the world’s supply chains. According to Investment Information and Credit Rating Agency (ICRA), freight costs on Suez-linked routes rose by around 122 percent, triggered by Houthi attacks on commercial vessels in late 2023, as ships were forced to detour around the Cape of Good Hope. For India, a nation that depends on sea routes for over 90 percent of its trade (by volume), maritime volatility is not just a logistical concern but also a strategic warning. In response, New Delhi is looking inland. The International North–South Transport Corridor (INSTC) and the Chabahar Port in Iran have become the backbone of India’s effort to secure alternative connectivity into Eurasia. These are not projects of ambition but of insurance, designed to keep the trade moving even when the maritime trade is disrupted and the markets turn uncertain.
In June 2024, Russia dispatched the first two coal-laden freight trains to India via the INSTC, marking a major milestone in operationalising the Russia–India multimodal logistics agreement. The construction on Rasht–Astara railway link, a strategic missing link of INSTC, is expected to begin in early 2026, with the backing of US $1.6 billion Russian investment. Once completed, it will fully connect India’s western ports with Russia and Europe through Iran and the Caspian Sea ports, cutting the Mumbai–St Petersburg transit time from nearly 40 days via the Suez route to about 20–25 days. Thus, INSTC corridor offers nearly 40 percent shorter and 30 percent cheaper route. For India, whose oil & gas imports reached nearly US $176 billion
in 2024–25, this diversification carries strategic weight. Yet the corridor’s promise extends beyond oil, it can channel the new energy economy viz chemicals, machinery, renewables, base metals, transport equipment and critical minerals – where Russia and Kazakhstan seek technology partnerships. According to some studies, once operational, this route could unlock an export potential of US $180 billion – nine times India’s current trade with the INSTC members. Unlocking even a fraction of this would turn connectivity from a strategic aspiration into a market reality.
The Valdai Discussion Club was established in 2004. It is named after Lake Valdai, which is located close to Veliky Novgorod, where the Club’s first meeting took place.
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