North-South Corridor to promote better trade between India and Azerbaijan - Ambassador 

  28 November 2019    Read: 1224
  North-South Corridor to promote better trade between India and Azerbaijan - Ambassador 

The International North-South Transport Corridor (INSTC) will promote better trade between India and Azerbaijan, Ambassador of India to Azerbaijan Bawitlung Vanlalvawna told Trend.

He pointed out that Azerbaijan is an important and key member of the International North-South Transport Corridor.

"We believe the full operation of the INSTC will ensure better connectivity between India and Azerbaijan and the larger Eurasian region. The completion of the project will significantly facilitate movement of goods and promote better trade and economic engagements between the two countries," noted Vanlalvawna.

It is estimated that the INSTC route from Mumbai to Moscow via Baku through Bandar Abbas or Chabahar ports in Iran would be significantly more cost effective and 40 percent shorter than the current sea route, said the envoy.

"We therefore, attach great importance to our collaboration with Azerbaijan in the INSTC project and are happy to work with Azerbaijan for further development and popularizing of INSTC," he added.

The foundation of the North-South Transport Corridor was laid on the basis of the intergovernmental agreement signed between Russia, Iran and India on September 12, 2000. Azerbaijan joined this agreement in 2005. In total, 13 countries have ratified the agreement (the Republic of Azerbaijan, the Republic of Belarus, the Republic of Bulgaria, the Republic of Armenia, India, the Islamic Republic of Iran, the Republic of Kazakhstan, the Kyrgyz Republic, the Sultanate of Oman, the Russian Federation, the Republic of Tajikistan, the Republic of Turkey and Ukraine).

The aim of the Corridor is to reduce the delivery time of cargos from India to Russia, as well as to Northern and Western Europe (at present delivery time on this route is over 6 weeks, but it is expected to be 3 weeks via North-South).

The project is planned in the direction of Northern and Western Europe – the Russian Federation, then in three more directions:

Caucasus – Persian Gulf (Western route);

Central Asia – Persian Gulf (East route);
Caspian Sea – Islamic Republic of Iran - Persian Gulf (Central route).

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