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India Should Incentivise Investments in Chabahar and INSTC

Leading Russian think tank Valdai Club is slated to host a conference, ‘Russia and Central Asia: Development and Security in a Changing World, on 14-15 May.
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Dr Pravesh Kumar Gupta, an Associate Fellow at New Delhi-based think tank Vivekananda International Foundation (VIF) would be representing India at the fourth annual Central Asian conference set to take place in Russian city of Ufa.
The foreign policy event will be attended by experts from Russia, India, Kazakhstan, China, Kyrgyzstan, Tajikistan and Uzbekistan.
Sputnik India spoke to Dr Gupta ahead of his participation in the event.

Russia’s Influence in Central Asia has Deepened After Ukraine Conflict

Gupta rejected West-backed narrative that Russia’s influence in Central Asia was on decline.
“There have been several narratives about Russia’s weakening position in Central Asia since the start of the Ukraine conflict. However, I don’t support these narratives. I have a different viewpoint. I believe that Russia’s influence in the region and its cooperation with Central Asian nations has further deepened in recent years,” the Indian expert said.
“The Central Asian states have taken more or less a neutral stance on the Ukraine conflict, but there are clear signs of deepening cooperation,” he added.
Gupta noted that Russia started to export liquefied natural gas (LNG) to Uzbekistan through Kazakhstan last year, describing it as one of most important energy cooperation pacts in recent years.
Gupta is of the view that Russia should deepen its security cooperation with Central Asian states in the wake of the Crocus City Hall terrorist attack in March.
“The Central Asian region has traditionally served as a buffer for Russia to prevent radical extremists from infiltrating into the Russian territory. I believe that Central Asia’s contiguity with Afghanistan makes it extremely vulnerable to security threats from terrorism. These factors make Russia’s security cooperation with Central Asian states very vital,” he explained.
He noted that mechanisms like Collective Security Treaty Organisation (CSTO), Shanghai Cooperation Organisation (SCO) and Regional Anti-Terrorist Structure (RATS) provide a framework for strong multilateral security cooperation.
Flowers and toys are placed on the roadside in front of the burnt-out Crocus City Hall following a terrorist attack

“But the terrorist attack in Moscow has raised several questions on security cooperation between Russia and Central Asian states. I believe that there is a need for Russia to further expand its security cooperation in Central Asia. There is a need for intensified engagement focussed on understanding the challenges, particularly in view of re-emerged of the Daesh* threat,” remarked Gupta.

Gupta also expressed concern over the risk of terrorism being used as a “political tool” by internal and external actors.
“To counter this, Russia should actively help the Central Asian nations develop their own security capacities,” he suggested.

India-Central Asia Ties on Upward Trajectory

Shifting gears to relations between India and Central Asia, Gupta noted that ties between the two regions have been on an “upward trajectory” in the last 10 years.
“The Indian and Central Asian leaders convened in New Delhi for their first ever summit in 2022. I believe that the next summit is on the cards later this year. Significantly, most of the initiatives proposed in the summit have been accomplished, which include forming a Joint Working Group on Chabahar, a Joint Working Group on Afghanistan and regular meetings of the National Security Advisors (NSAs),” the VIF expert highlighted.
He further stressed that the “historical and civilisation links” between India and Central Asia through most part of history.

“Archaeological evidence suggests that there were contacts between Indus Valley and Oxus Valley civilisations. Then, Buddhism played an important role in enhancing contacts between India and Central Asia. We must remember that it was India where Buddhism emerged and travelled to other parts of the world. It went from India to Afghanistan to Central Asia before reaching China,” Gupta said.

He cited historical evidence to suggest that Buddhism “flourished” in Central Asia in the first and second centuries BC.
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‘India Must Offer Incentives for Chabahar and INSTC’

Gupta said that New Delhi and Central Asian capitals were seeking to overcome the challenge of connectivity through projects such as Chabahar Port and the International North South Transport Corridor (INSTC).

“Both India and Iran have negotiated a long-term pact for the Chabahar port renewable every 10 years, as opposed to the current contract which has to be renewed annually. We have seen that even the Taliban** regime in Afghanistan has started to support the usage of Chabahar port in bolstering economic connectivity between India and the region. Till now, we have used the port to transport humanitarian assistance,” noted Gupta.

As far as the INSTC is concerned, Gupta said that it was an “opportune moment for the connectivity initiative to fructify”.
“However, I feel that the private sector has a lot of apprehensions around both Chabahar and the INSTC. What we need to do is to incentivise the participation of private investors in both the projects. There is also a need to address the challenges related to structural issues, be it banking, logistical and customs,” said Gupta.
World News
Iran Urges Central Asian Nations to Invest in India-Backed Chabahar Port
*banned terrorist organisation in Russia and other countries
**under UN sanctions
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