India and Russia Strengthen Logistics and Supply Chain Cooperation with New Transport Corridors and Trade Initiatives

During the 22nd India-Russia Annual Summit, India and Russia exhibited a commitment to expanding their logistics and supply chain links, focusing on enhancing infrastructure capacities. The goals are clear – to support the implementation of the Chennai-Vladivostok Eastern Maritime Corridor and the International North-South Transport Corridor (INSTC), and to harness the potential of the Northern Sea Route. During the recent 22nd India-Russia Annual Summit, India’s Prime Minister Narendra Modi and Russia’s President Vladimir Putin underscored their shared vision for building efficient and stable transport corridors.

The Chennai-Vladivostok Eastern Maritime Corridor, a vital link between India and Russia’s Far East, promises to streamline maritime trade routes, cutting transit times and costs significantly.

On the other hand, the INSTC is a multi-modal network of ship, rail, and road routes for moving freight between India, Iran, Afghanistan, Armenia, Azerbaijan, Russia, Central Asia, and Europe. This corridor aims to reduce the transport time of goods to Europe by 40%, offering a viable alternative to the traditional Suez Canal route.

The Northern Sea Route (NSR) which runs along Russia’s Arctic coast is also set to play a crucial role in connecting the two countries. Both nations expressed readiness to establish a joint working body within the Intergovernmental Russian-Indian Transport and Economic Cooperation (IRIG-TEC) framework to facilitate this collaboration.

Apart from the aforementioned key surface routes connecting India to Russia and Europe, the summit also highlighted the importance of cooperation in civil aviation. The recent meeting of the Sub-Working Group on Civil Aviation in Moscow paved the way for enhanced collaboration in civil aviation security and operations.

Energy cooperation remains a critical cog of the India-Russia partnership. Both countries noted the role of bilateral trade in energy resources and explored new long-term contracts to ensure energy security. Ongoing cooperation in the coal sector, with a focus on increasing the supply of coking coal to India and exporting anthracite coal from Russia, was also emphasized.

Both nations also reiterated the need for interregional dialogue between the regions of the Russian Far East and Indian states, encouraging the establishment of twinning relations to foster business, trade, educational, and cultural exchanges. The Russian government has invited Indian investors to participate in high-tech projects within the Territories of Advanced Development in the Russian Far East, further strengthening economic ties.

In the defense sector, the partnership is evolving towards joint research, development, co-development, and joint production of advanced defense technology and systems. The establishment of a new Working Group on Technological Cooperation aims to foster joint manufacturing of spare parts, components, and other products under the Make-in-India program, ensuring the maintenance of Russian-origin defense equipment.

Leave a Reply

Your email address will not be published. Required fields are marked *