New Delhi consents major port to increase Russia-India trade
(MENAFN) The Indian government has given the go-ahead for the construction of a major port at Vadhavan, located on the western coast of Maharashtra, a move intended to enhance trade links with Russia and integrate India more deeply into global trade routes. This announcement, made on Friday, signals a strategic push to boost bilateral trade and improve connectivity with key international markets.
The planned port will serve as a pivotal hub in the International North-South transportation Corridor (INSTC) and the India-Middle East-Europe Economic Corridor (IMEEC). The INSTC, a 7,200-kilometer route proposed in 2000, is designed to facilitate the movement of goods from India to Russia via Iran, offering an alternative to the Suez Canal. Despite its ambitious goals, the INSTC has yet to be fully realized, but its relevance has surged due to increasing trade between India and Russia.
During his visit to Moscow in July, Indian Prime Minister Narendra Modi underscored the need to enhance connectivity with Russia, reinforcing the importance of advancing the INSTC. Both nations have set a goal to achieve USD100 billion in trade by 2030, making the development of this trade corridor a critical step in reaching that target.
The IMEEC, which aims to improve economic integration and connectivity between Asia, the Persian Gulf, and Europe, was agreed upon last year at the G20 summit in New Delhi. However, progress on this project has been impeded by ongoing conflicts in the Middle East.
The new Vadhavan port project is expected to cost approximately 76,220 crore rupees (USD9 billion), including land acquisition and construction expenses. Indian Ports, Shipping, and Waterways Minister Sarbananda Sonowal presented this information to Parliament, highlighting the strategic and economic importance of the port in advancing India's global trade ambitions.
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