North-South Corridor and BRI are not incompatible

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Editor's note: Ashok Sajjanhar is the president of the Institute of Global Studies in India and a former Indian ambassador to Kazakhstan, Sweden, and Latvia. The article reflects the author's views, and not necessarily those of CGTN.

The International North-South Transport Corridor (INSTC) which was launched in 2000 by India, Iran and Russia and ratified in 2002 by the three countries has been receiving considerable attention over the last several months, with concerns over the relationship between it and China's Belt and Road Initiative (BRI).

These three countries have met in recent months to provide a concerted fillip to the construction and operationalization of this project. The most recent meeting to iron out the wrinkles on its smooth functioning took place on 23 November among the three original proponents of the initiative.

INSTC is a 7,200-km-long multi-modal connectivity project designed to promote transportation cooperation among the member states and links the Indian Ocean and the Persian Gulf to the Caspian Sea via Iran. This route extends to join India with St Petersburg and thereafter with Northern Europe.

This connectivity route was originally envisioned because the existing route of transporting goods from India to Russia and northern Europe through the Suez Canal to the western ports like Rotterdam, and through the eastern ports like Shanghai was too expensive and time-consuming. It was thought that a more direct route through Iran and Azerbaijan would provide a strong impetus to the commercial and people-to-people connection among different countries of the region.

Russian President Vladimir Putin (R) meets his Azerbaijani counterpart Ilham Aliyev (C) and Iranian President Hassan Rouhani (L) in Baku on August 8, 2016. The meeting focuses on the International North-South Transport Corridor (INSTC). /VCG Photo

A study conducted by the Federation of Freight Forwarders' Associations in India found that the route was “30% cheaper and 40% shorter than the current traditional route.” The Suez Canal route takes 45 to 60 days, whereas the INSTC would cost 25 to 30 days.

Considering that Pakistan does not permit India to access Afghanistan or Central Asia through its territory, the INSTC route can provide India ingress to these regions for advancing its economic, commercial and strategic interests.

Notwithstanding the close cultural and civilizational links among India and Afghanistan and Central Asia, relations have remained considerably below potential because of the absence of direct connectivity. The growing strength and influence of terrorist groups like the ISIL in Afghanistan make it necessary for India to strengthen its ties with countries in the region to ensure peace, security, stability, and prosperity in its extended neighborhood.

INSTC has witnessed anaemic progress since it was conceptualized 18 years ago principally because of the prevailing uncertainty in the region as well as the international sanctions on Iran. After sanctions on Iran were lifted in pursuance of the Iran nuclear deal in 2015, progress on this project has shown a marked upswing.

Several infrastructural, procedural and logistical shortcomings which came to the fore are sought to be removed through resolute action by countries concerned. Indian exports and projects could potentially get a competitive advantage due to lower transportation cost and shorter delivery time. Potential of this route could increase manifold if countries located in Southeast Asia are also brought on board.

Russian President Vladimir Putin (R) and President and Chairman of VTB Bank Management Board Andrei Kostin take part in the launching of the central section of the Western High-Speed Diameter, a toll highway of the INSTC, on December 2, 2016 in Saint Petersburg. /VCG Photo

However, some commentators have erroneously sought to project INSTC as a challenger to China's BRI. Nothing could be farther from the truth.

INSTC was conceived and launched in 2000. BRI, introduced by Chinese President Xi Jinping during his visits to Kazakhstan and Indonesia in 2013, was nowhere on the scene at that time.

Moreover, BRI projects in Central Asia and the Middle East run essentially in an East-West direction while INSTC is a North-South enterprise. The two projects are hence not in contradiction with each other. On the contrary, they are mutually supportive of each other. INSTC and BRI enjoy a synergy and will be a win-win proposition for all countries concerned.

There is no clash or rivalry between the two ventures. Both projects are being given a concerted push simultaneously is purely coincidental.

All countries involved in the INSTC including Russia, Iran, Kazakhstan and others have excellent relations with China as they do with India. Therefore, these countries will balance the interests of all parties and would not like to get actively involved in a project that would be inimical to the interests of China.

It is hence evident that all countries which are associated with INSTC as well as with BRI in the region need to cooperate and collaborate more actively so that fruits of their partnership are shared by all countries.

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