Previous Year Question
India is one of the founding members of the International North-South Transport Corridor (INSTC), a multimodal transportation corridor, which will connect?
India to Central Asia to Europe via Iran
India to Central Asia via China
India to South-East Asia through Bangladesh and Myanmar
India to Europe through Azerbaijan
Correct Answer: A
Detailed Solution
The International North-South Transport Corridor is an approximately 7,200-km-long multimodal freight corridor involving a combination of sea, rail and road transport.
Its principal objective is to connect India, through Iran, with the Caspian Sea region, Central Asia, Russia and eventually Europe. Its general geographical alignment can be understood as:
Western Indian ports → Iran → Caspian Sea/Central Asia → Russia → Europe
India, Iran and Russia signed the founding agreement concerning the INSTC at St. Petersburg on 12 September 2000. These three countries are consequently its founding members. The agreement entered into force in 2002.
Three major route alternatives have evolved within the corridor:
Western route: From Iran through Azerbaijan to Russia;
Central route: From Iranian ports across the Caspian Sea to Russia;
Eastern route: From Iran through Turkmenistan and Kazakhstan to Russia.
Option (a) is correct because it describes the corridor’s broader geographical function of connecting India with Central Asia and Europe through Iran.
Option (b) is incorrect because China is not part of the principal INSTC alignment. Option (c) relates more closely to India’s eastern connectivity projects, including the India-Myanmar-Thailand Trilateral Highway. Option (d) is incomplete because Azerbaijan is situated only on one branch of the corridor; the broader route connects India through Iran with Central Asia, Russia and Europe.
Economic significance
Potential benefits of the INSTC include:
A shorter transportation time than the traditional route through the Suez Canal;
Overcoming India’s absence of direct land connectivity with Central Asia;
Providing an alternative freight route to Russia and Europe;
Utilising Iranian ports and rail networks;
Potential reduction in freight costs and transit time.
Different trial studies have indicated a possible reduction of approximately 40% in transit time and around 30% in freight cost compared with the traditional route. Actual savings depend on the commodity, route, customs procedures and availability of rail and road links.
Current status (2026)
Several sections of the INSTC are operational, while certain rail and border-connectivity segments remain under development. In May 2024, India and Iran signed a 10-year contract for operating the Shahid Beheshti terminal at Chabahar Port. Chabahar strengthens India’s access to Iran, Afghanistan and Central Asia and complements the wider north-south connectivity framework.