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Ministry of External Affairs | Reserve Bank of India (RBI)
The BRICS portal analysis “Corridors of Resilience: India’s Emerging Eurasian Strategy” explores India’s strategic push to secure alternative connectivity into Eurasia through the International North–South Transport Corridor (INSTC) and the Chabahar Port in Iran. India’s interests in the region are categorized into three core priorities: access to regions like Central Asia and Afghanistan, diversification of routes and partnerships as a form of sovereignty, and agency in writing the rules of continental trade.
Key components and challenges of the strategy:
Connectivity Networks: The INSTC provides a gateway to resource-rich Central Asia, while the Vladivostok–Chennai maritime route links India to the Russian Far East.
Financial Reforms: To bypass sanctions-related hurdles, the RBI simplified rupee–rouble trade settlements in August 2025 by allowing Special Rupee Vostro Accounts (SRVAs) without prior approval.
Operational Hurdles: Challenges include physical mismatches (rail-gauge incompatibility), uneven customs harmonization, and a fragile insurance ecosystem due to persistent sanctions on Iran and Russia.
Institutional Shift: India is moving from being a corridor user to a corridor governor through FTA negotiations with the Eurasian Economic Union and its role in the Ashgabat Agreement.
What is the International North–South Transport Corridor (INSTC)? A 7,200-km multi-modal network of ship, rail, and road routes for moving freight between India, Iran, Azerbaijan, Russia, Central Asia, and Europe. It aims to reduce transit time by 40% and costs by 30% compared to the traditional Suez Canal route, enhancing India’s strategic reach and economic integration with the Eurasian landmass.
Policy Relevance
India’s Eurasian strategy is an extension of its strategic autonomy into the realms of logistics and finance. By securing a ten-year management contract for the Chabahar Port and advocating for the use of local currencies, India aims to de-risk its supply chains from geopolitical fragmentation. The focus is now shifting toward institutionalizing these reforms—through bodies like the BRICS New Development Bank—to convert diplomatic momentum into genuine commercial traction for the private sector in logistics and manufacturing.
Relevant Question for Policy Stakeholders: How can India balance its strategic investments in the INSTC with its commitments to international sanctions regimes to ensure the private sector finds the Eurasian corridor commercially viable and risk-free?
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