Indian Council of World Affairs

The current international situation is complicated in various ways amidst conflicts and strategic uncertainties. In the post-COVID-19 international scenario and in the ongoing geopolitical tensions and conflicts, there is a growing emphasis on building connectivity, including in the CICA/Eurasian region, and make it resilient and diversified for secure commerce and people to people ties.

Secondly, our region and the world are going through a widespread transformation, especially in the fields of economy, and digital technology. The return of the global economic axis towards the Eurasian region is a crucial phenomenon and it will have profound impact in our region.

Third, in the evolving new global order, which is multipolar, Eurasia is well-positioned to play a significant role, especially in the spheres of international economic and transportation connectivity. A multipolar international order critically depends on a multipolar Eurasia and the interplay within Eurasia. It reduces dependency on single points of failure, fosters collaboration among diverse global players, and supports economic and political stability by ensuring no single entity dominates the infrastructure.

In this context, Eurasia came up with a unique response in the form of the International North South Transport Corridor (INSTC). It was conceived by India, Russia and Iran in early 2000s much before any other big regional initiatives. According to the Statute of the International North-South Transport Corridor Coordination Council, the objective of the corridor is to increase goods and passenger transportation. Over the period, INSTC has been emerging as a key link among Eurasian countries, and for the CICA region.

The 7,200-kilometre multimodal INSTC transportation network link runs from St. Petersburg in Russia to Bandar Abbas port in southern Iran, and from there to Mumbai in India. It constitutes three branches: Western Route, Eastern Route, and the Central Route.

The corridor has been receiving more attention lately and is enhancing east-west and interregional connections along the north-south axis. According to a research in 2014 by the Federation of Freight Forwarders’ Association of India, goods going to Europe can travel an average of 23 days instead of 45–60 days thanks to INSTC, which is also 30 per cent less expensive and 40 per cent faster than the conventional Suez route. The transportation cost has since been declining as well.

India has undertaken multiple initiatives to develop all round connectivity with the neighbourhood, extended neighbourhood, wider regions and beyond. Prime Minister Narendra Modi in his addresses and interaction with regional and world leaders has often highlighted the significance of connectivity. In his statement during the 25^th SCO Summit on September 1, 2025 in China, he said “India has always believed that strong connectivity does not merely facilitate trade but also opens the doors to trust and development.” He also underlined that initiatives such as the Chabahar Port and INSTC can enhance India’s linkages with Afghanistan and Central Asia.

India gives high priority to the INSTC. There is an overlapping membership of INSTC and CICA countries. India’s External Affairs Minister Dr. S. Jaishankar in his interaction with his Russian counterpart in December 2023 highlighted the significance of the INSTC, and said “It is in our interest and not just in our interest, I think in the interest of the global economy that this corridor progresses. And we will give it the highest priority.” In June/July 2022, the first major commercial consignment through the INSTC was sent from Russia to India.

Chabahar Port

Iran’s role is pivotal in enhancing Eurasian connectivity, and India and Iran are closely working in this regard. Iran’s Persian Gulf port of Bandar Abbas is part of the INSTC, while the Chabahar port is not yet part of INSTC framework, though a proposal has been made for its inclusion. INSTC’s countries support Chabahar’s inclusion in the INSTC.

Following the signing of MoU with Iran in May 2015, India has made substantial investments in the development of Chabahar. In cooperation with Iran, it is developing the first phase of the Shahid Beheshti Terminal, Chabahar Port. India Ports Global Limited (IPGL) is operating the Port since 2018, which signed a ten-year contract with the Ports and Maritime Organisation (PMO) of Iran in May 2024 for equipping and operating the Shahid Beheshti Terminal of Chabahar Port. Since 2018, the port has handled over 450 vessels and more than 8.7 million tons of bulk and general cargo.

India envisions Chabahar Port as a transit hub under INSTC to reach out to the regional countries. The port has also emerged as an important for providing humanitarian assistance to Afghanistan in the time of crises.

While the impact of lack of connectivity is evident, the impact of improved connectivity is also evident even in Asia/Eurasia region. In Asia, we have regions of economically and connectivity-wise integrated space, such as ASEAN and GCC. The positive impact is tangible and these regions have developed as strong economic hubs. Central Asia is also taking concrete steps to further improve the intra-regional cooperation while the South Caucasus countries are working on initiatives to enhance regional and national rail, road, and maritime connections.

BRI

We agree with this session’s focus on enhancing connectivity in Eurasia. However, our concerns related to the BRI are well known. As Prime Minister Modi in his recent address at the 2025 SCO Summit in Tianjen said: “We believe that every effort towards connectivity must uphold the principles of sovereignty and territorial integrity… Connectivity, that by-passes sovereignty, ultimately loses both trust and meaning.” Our position on China’s ‘One Belt One Road’ (OBOR) or ‘Belt and Road Initiative’ (BRI) has been clear and consistent. We continue to monitor the implications of the projects under OBOR/BRI on India’s sovereignty, territorial integrity and security. India has consistently protested to the Chinese side over the inclusion of the so-called ‘China-Pakistan Economic Corridor’ (CPEC), which passes through parts of the Indian Union Territories of Ladakh and Jammu & Kashmir under illegal occupation of Pakistan, as a flagship project of ‘OBOR/BRI’ and asked them to cease these activities.

Thank you

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