Russia–India INSTC Supply Chain Route Doubled Transit Volumes In 2024

Trade between India and Russia using the International North South Transport Corridor (INSTC) almost doubled last year, according to Russian Railways official Dmitry Kryukov. New Delhi is increasing the volume of exports via the route as it looks to reduce its substantial trade deficit with Moscow. Kryukov said that “The net cost of the service along the eastern route of the INSTC last year was reduced by more than 56%, while the volume of transportation across this route increased by 1.7 times.”

Kryukov is the Deputy General Director for Multimodal services at Russian Railways Logistics. An Indian government report also noted a significant increase in maritime activity, with a 43% rise in vessel traffic and a 34% growth in container traffic during the Indian financial year 2023-24.

Kryukov said logistics improvements are also being made. Currently, it takes more than a fortnight for goods from Moscow to reach the port of Bandar Abbas in Iran, with the need to speed up railway delivery times from Russia through Turkmenistan and Kazakhstan to Bandar Abbas being a significant shortcut for the Eastern branch of the INSTC.

The INSTC originates in Mumbai, traversing through Iran’s Bandar Abbas, Bandar-e-Anzali, and Chabahar, before crossing the Caspian Sea to reach Astrakhan in southern Russia. It then connects to Moscow and St. Petersburg via rail and road links.

The INSTC facilitates trade between India and Russia, with India exporting goods such as construction supplies, clothing and footwear, rice, plastics, rolled iron, confectionery, seasoning, and food concentrates to Russia, Kryukov told Indian media. Russia exports paper products, lumber, hygiene products, furniture, roofing materials, food, and other types of goods, while the INSTC can help diversify bilateral trade between Russia and India, with the pharmaceutical industry being a promising area for growth. The eastern route of the corridor is now equipped to handle Indian pharmaceutical products that require “specialized transportation conditions” and is particularly “significant given that India became the largest supplier of pharmaceuticals to Russia in 2023.”

Russia and India have achieved a significant milestone in their bilateral trade, reaching a record US$66 billion in 2024. The two countries are poised to meet their ambitious target of US$100 billion in trade by 2030, having already made substantial progress.