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Kazakhstan pushes to increase trade with India via INSTC.
Mar 08, 2024
Central Asia's biggest state Kazakhstan is keen to increase trade with India via the International North South Transport Corridor (INSTC).
Kazakhstan’s Prime Minister Olzhas Bektenov travelled to Moscow to attend a meeting on March 4 with the Prime Minister of PM, Mikhail Mishustin.
High on the agenda was INSTC and in particular, the section of railway interlinking Russia, Kazakhstan, Turkmenistan, and Iran. Kazakhstan-Turkmenistan route is the one of the branches of INSTC to connect India with Eurasia.
Russia and Kazakhstan are connected by the longest land border in the world spanning over 7,500 km. Noting that “the most important transit routes in Eurasia run through our countries', the Russian prime minister highlighted the huge potential for cooperation in transport and logistics.
In February, Kazakhstan’s Deputy Minister of Transport, Maksat Kaliakparov reported on plans by the railway administrations of Kazakhstan, Russia, and Turkmenistan to launch a joint venture to improve services and reduce cargo delivery time along the INSTC.
In 2023 the volume of cargo transported via this route amounted to 2.1 million tons; an increase of 4% compared to 2022. By 2027, the transport potential of the entire corridor could increase to between six – 10 million tons per year.
To maintain progress and facilitate transit between the two countries, the Kazakh prime minister stressed the need to speed up work on checkpoints on the Kazakh-Russian border. According to plans, 29 of the 30 checkpoints are due to be modernized by 2027. INSTC will enable Kazakhstan to target markets in India and beyond in ASEAN and Indian Ocean Region.
Kazakhstan is India’s largest trade and investment partner in Central Asia. During Jan-Dec. 2020, bilateral trade is US$ 2.37 bln and during the same period exports from Kazakhstan to India is US$ 1.99 bln and exports from India is US$ 382.9 mln.
economictimes.indiatimes.com
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