Indian Economy News

Russia launches trade with India via Eastern branch of INSTC involving Central Asian states

Russian logistics firm RZD Logistics has commenced transportation by full container trains from Russia to India by the eastern branch of the International North-South Transport Corridor (INSTC) involving transport infrastructure of Russia, Kazakhstan, Turkmenistan, Iran and India.

The first container train has departed from the Moscow-area Chekhov station. The final destination of this intermodal transportation is the Indian port of Nhava Sheva (Mumbai). It includes a sea leg of around 35–37 days and the distance is more than 8,000 miles. The key driver of the project is the balanced tariff policy of all the participants.

According to Mr. Dmitry Murev, General Director, RZD Logistics, the north-south traffic on Russian Railways increased by 26% YoY. In 2021, cargo turnover between Russia and India rose by 46.5%.

In addition to boosting trade, this deal will support the construction of additional border checkpoints, cargo consolidation facilities, and improved communication between customs, phytosanitary, and other agencies.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.