HomeOpinionsGlobal trade choke points and the need for new routes: India, Central Asia and...

Global trade choke points and the need for new routes: India, Central Asia and the INSTC

The doors to India's extended neighbourhood could possibly be opened wider, bringing a region that has long remained geographically close yet otherwise far away within better reach. In fact, India's trade with the five Central Asian republics (Kazakhstan, Uzbekistan, Kyrgyzstan, Tajikistan and Turkmenistan) remains surprisingly low, hovering at just $1.7 to $2 billion in 2023.

Global trade increasingly depends on a small number of maritime chokepoints that can be disrupted by war, sanctions or regional tensions. The Strait of Hormuz, Bosporus, Suez Canal, Bab-el-Mandeb and other passages illustrate how quickly instability can affect energy supplies, freight costs and shipping schedules. This has pushed major economies to search for alternative routes that reduce dependence on vulnerable sea lanes.

Russia recently proposed exploring a rail link towards the Indian Ocean through Central Asia, potentially involving Kazakhstan, Turkmenistan, Iran, Afghanistan and Pakistan. The idea remains a proposal rather than an approved direct railway, but reflects Moscow’s effort to create more dependable links with India as bilateral trade reached $68.7 billion in 2024-25.

For India, the broader opportunity lies in the International North-South Transport Corridor, or INSTC. Launched through an agreement between India, Iran and Russia in 2000, the 7,200-kilometre multimodal network combines sea, road and rail routes connecting India with Iran, the Caspian region, Russia, Central Asia and Europe. Its Central, Western and Eastern corridors provide different pathways into Eurasia, with the Eastern Corridor particularly relevant for India’s engagement with Central Asia.

The corridor could address a long-standing geographical constraint. Partition severed India’s direct land access to Afghanistan and Central Asia, while Pakistan has repeatedly denied overland transit. INSTC provides an alternative through Iranian ports and Eurasian rail networks. Compared with the traditional Suez route, the corridor is projected to reduce distance by around 40%, cut transit time from 40-45 days to roughly 18-25 days and lower freight and operational costs by about 30-40%.

Its strategic importance extends beyond Russia. India’s trade with the five Central Asian republics remained only around $1.7-2 billion in 2023, compared with more than $100 billion between Central Asia and China. Better connectivity could expand Indian access to these resource-rich markets while complementing Chabahar Port, the Ashgabat Agreement and India’s wider Central Asia policy.

India and Russia are simultaneously developing other options, including the Chennai-Vladivostok Eastern Maritime Corridor and cooperation around the Northern Sea Route. Together, these initiatives reflect a broader shift in global trade strategy: traditional routes will remain important, but countries increasingly want multiple corridors so that a crisis at one chokepoint cannot disrupt entire supply chains.

Read the full article on Chapter One Magazine.

Join OpIndia's official WhatsApp channel

  Support Us  

For likes of 'The Wire' who consider 'nationalism' a bad word, there is never paucity of funds. They have a well-oiled international ecosystem that keeps their business running. We need your support to fight them. Please contribute whatever you can afford

Rukma Rathore
Rukma Rathore
Accidental journalist who is still trying to learn the tricks of the trade.

Related Articles

Trending now

- Advertisement -