India’s Vision for international trade


Chabahar Port has given India a new boost as it recently adopted an ambitious vision for international trade in the Central Asian region. Lack of access to land routes through Pakistan has long hampered India’s trade with Afghanistan and Central Asia.

India’s economic opportunities in the region have changed with the development of Iran’s new port at Chabahar, which has given India a trade route that bypasses Pakistan entirely. A number of investments have been made in initiatives aimed at improving the region’s physical connectivity through the development of Chabahar Port.

In 2018, Uzbekistan launched the railway project connecting Herat and Mazar-i-Sharif, near the Uzbek border. This railway line will connect to the Chabahar-Zahedan railway line on the Iran-Afghanistan border and is expected to be completed in 2018. 2024.

In order to manage the shared use of Chabahar Port and work on several connectivity projects in the region, focusing on Shahid Beheshti Terminal of Chabahar Port, India, Iran and Uzbekistan formed a Trilateral Working Group in 2020.

Following the conflict in Ukraine in 2022, a huge trade volume developed between India and Russia in agricultural products and energy resources. The need for more reliable trading partners for Russian exports has both helped to support the current emphasis on regional connectivity, as well as greater investment and accelerated development.

India has benefited from the changing geopolitical situation in many ways. First, countries are desperately trying to ensure their citizens have access to food and energy as energy prices rise worldwide and food shortages are a growing concern.

In India, the needs and means of livelihood of the population clearly take precedence over ideological claims, which is not an anomaly. Russia is struggling to find markets for its food, fertilizer and energy exports as Europe tries to limit trade with it and considers new sanctions and price controls.

The environment of sanctions and containment provided India with a valuable opportunity to meet these needs at attractive prices. According to Mika Takehara, an analyst at the Japan Oil, Gas and Metals National Corporation (JOGMEC), India is trying to turn this temporary benefit into something more permanent.

According to Takehara, Indian experts and policymakers are considering increasing Russian oil imports to 30pc of India’s total intake through spot market purchases while reducing their dependence on long-term contracts with Middle Eastern exporters.

State-owned Indian companies, including Bharat Petroleum, are apparently trying to strike long-term oil deals with Russia at the same time. The increased trade with Russia has provided evidence of the viability and value of the International North-South Corridor (INSTC) as a route capable of handling large volumes of trade, as well as supporting more investment in connectivity projects around the INSTC. besides giving India a path to energy and food security.

Several recent conferences, including the most recent meeting of the Shanghai Cooperation Organization

Read full article here

Leave a Reply