INSTC to spurt international trade and logistics business: Commerce Secretary

September 26, 2018: In the days to come, there would be tremendous boost to exim trade between India and West Asia and European countries using INSTC (International North South Transport Corridor) route, Commerce Secretary Dr. Anup Wadhawan recently stated at the conference on INSTC, organised jointly by FFFAI and Ministry of Commerce & Industry.

The event, organised in New Delhi coincides with FIATA WORLD CONGRESS 2018. The conference was attended by senior bureaucrats, diplomats from Embassy of Iran, Russia, Azerbaijan and CIS countries; former FIATA president Stanley Lim; former FFFAI chairman Samir Shah; EC Member of FFFAI Shankar Shinde; members from EXIM fraternity and delegates from India, Russia, Iran and CIS countries.

The North-South Transport Corridor is an ancient route that connects South Asia with North Europe for centuries. This route was used by European, Indian, Russian and many other foreign traders. These traders played a significant role in managing the trade and commerce between Russia and South East Asia through the territory of present day Azerbaijan and Iran. Currently, 14 countries are connected with INSTC route. “We have very strong traditional connections with these 14 countries and I am sure there will be huge trade transactions soon an effective logistics set up established. Our Government is committed to make the INSTC initiative a big success,” stated Wadhwan.

Meanwhile, Shah lauded Government of India’s efforts in this regard and highlighted various initiatives including trial run, study works, etc from FFFAI during last couple of years. He pointed out that FFFAI’s study highlighted various dimensions of connectivity between India, Russia and other CIS Countries. The study examined in particular the INSTC, its current status and future prospects. It explained the problem areas of this corridor and provided options for facilitating efficient transport logistics between India and the Eurasian region. The FFFAI study argues that so far the full potential of this corridor has not been realised and the sector is still untapped which can be further explored for opportunities by all stakeholders. Shah, however, expressed high optimism about the present stage and future development of INSTC route.

Also, focusing on the importance of regional trade initiatives, Lim pointed out the success story of ASEAN. “We are very much hopeful that INSTC would be encouraging for multimodal logistics industry in this region as well,” he said.

According to Shinde, INSTC conferences in India provide huge opportunities to enlighten on streamlining documentation for seamless movement and open up many competitive optional route in CIS countries and Russia which will result in enhancing trade and open new avenues for LSP (Logistics Service providers).