NEW DELHI, February 20. /TASS/. Trade between India and Russia using the International North-South Transport Corridor (INSTC) doubled last year, The Economic Times newspaper reported.
New Delhi increased the volume of exports via this route as it looks to reduce its substantial large trade deficit with Moscow, according to the publication. Goods exported by India to Russia along INSTC includes construction supplies, clothing and footwear, rice, plastics, rolled iron, confectionery, seasoning and food concentrates, while Russian exports to India through this route include paper products, lumber, hygiene products, furniture, roofing materials, food and other types of goods.
"The net cost of the service along the eastern route of INSTC last year was reduced by more than 56%, while the volume of transportation across this route increased by 1.7 times," the paper quoted Dmitry Kryukov, deputy general director for multimodal service at Russian Railways Logistics, as saying.
Bilateral trade between the two countries reached a record of $66 bln in 2024, marking a fivefold increase over the past five years, with a 9 per cent rise in the last eight months of last year, the report said. Russia and India are on track to achieve the ambitious $100 bln trade target by 2030.
"Diversification of bilateral trade between Russia and India can be addressed by INSTC. Pharmaceuticals are among the most prospective industries in this respect. Today the eastern route of the corridor is ready to accept Indian pharmaceutical products that require special conditions of transportation," Kryukov said, adding that this logistics option "can prove to be timely and relevant, taking into consideration the fact that India was acknowledged the largest supplier of pharmaceuticals to Russia in 2023."
An intergovernmental agreement on the creation of the multimodal transport corridor North-South spanning 7,200 km was signed by Russia, India and Iran in 2000. Later, the number of participants rose to 14. The project is aimed at attracting transit of cargo flows from India, Iran and the Persian Gulf countries through Russian territory to Europe. Currently the project unites several various transport systems of separate countries.