Big move by Modi govt as India decides to work with this Muslim country to give tough competition to China, not Iran, Afghanistan, the masterplan is…
Trans-Caspian International Transport Route: China’s Belt and Road Initiative (BRI) is dominating the global trade infrastructure. India is now looking for another route to reduce its dependency on it. The route that can be a substitute for the BRI is Trans-Caspian International Transport Route (TITR), also known as the Middle Corridor. Work on the TITR is progressing rapidly under Kazakhstan.
What is Belt and Road Initiative?
In 2013, Beijing had announced the Belt and Road Initiative with an aim to connect several continents through land and sea routes. This initiative aims to facilitate the exchange of goods, capital, technology, and people among participating countries.
Why India Dislikes BRI?
There are some things that India doesn’t like about the BRI such as the China-Pakistan Economic Corridor (CPEC) which passes through Pakistan-occupied Kashmir (PoK). New Delhi, irrespective of any government in power, always opposed it, stating that it violates the country’s territorial sovereignty. Foreign Ministry spokesperson Randhir Jaiswal stated that India is not in favour of CPEC. The route is against India’s territorial integrity and sovereignty. However, the route on which work is going on now does not start from Beijing, but from Kazakhstan.
Kazakhstan Is Investing Heavily
According to a report by the Economic Times, Kazakhstan is emerging as a hub of Eurasia through this middle corridor. Notably, India is not directly connected to this network, but fast progress on it can give India an opportunity to reduce its dependence on BRI.
As per Kazakh Transport Ministry, the traffic on TITR increased by 62 percent to 4.5 million tonnes last year. If we talk about container transport, it has increased by 170 percent to 56,500 TEU. Out of 56,500 TEU, 35,600. The target is 5.2 million tonnes and 70,000 TEU by 2025.
Kazakhstan is majorly upgrading its logistics infrastructure. This includes plans to modernize over 13,000 km of roads and 6,100 km of railway lines in 2025, along with expansion of six airports and construction of new seaports, such as a 240,000 TEU container hub in Aktau. Further rail improvements, encompassing another 11,000 kms of track, are scheduled for completion by 2029.
What Does It Mean For India?
Maritime transport is very important for India as 95 percent of the foreign trade I carried out through sea route. The Suez Canal route is crucial for tor trade with Europe, North Africa and America. Notably, 35 percent of India’s foreign trade is done by this route. The Suez Canal provides a vital maritime trade route linking the Mediterranean and Red Seas, facilitating commerce between Europe and Asia.
The ongoing conflict and Houthi rebel control in the Red Sea are causing many international shipping companies to bypass the Suez Canal, opting for the longer Cape of Good Hope route. This rerouting has resulted in a freight cost increase of as much as 122 percent.
TITR is a land-sea multimodal alternative that can bring ease the sea routes, reduce freight costs and allow Indian exporters to export goods to European markets. Most importantly, TITR connects to India’s International North-South Transport Corridor (INSTC), which is a 7,200 km long network, connecting Mumbai to Europe via Iran and Russia.
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