The ongoing crisis in the Middle East and situation in Red Sea has made the North-South International Transport Corridor (ITC) more vital.
Speaking to Russian media, Director General and CEO of Federation of Indian Export Organisations (FIEO) Dr. Ajay Sahai said the corridor is economically beneficial for India.
“This corridor has always been important to us because it is economically beneficial. Due to the situation in Western Asia and problems in the Red Sea, the relevance of the route has increased,” Sahai said.
The FIEO chief stressed that growing trade relations with Russia and the countries of Central Asia make the corridor important, while it also helps gain direct access to Afghanistan, bypassing Pakistan.
“We are considering this route for connections with the CIS countries and Afghanistan, but now, due to problems in the Red Sea, it makes it possible to use it for trade with Russia,” Sahai stated.
North-South Transport Corridor Increasingly Important Amid Red Sea Crisis: Expert
While conceding there were challenges in the launch of the corridor, he said overcoming them would be worthwhile.
“On paper it looks viable, but a deeper strategy needs to be developed," Sahai said. "There are also a few problems. The route goes through Iran, where there is a port under [US] sanctions. Indian companies are not very willing to negotiate documents when goods are passing through a sanctioned port. This is not an easy task.”
Sahai noted that trial cargo shipments had already been successfully launched along the route. Special delegations from Russia have also visited India to discuss the prospects for opening the corridor. meetings with Russian colleagues also took place at FIEO.