Armenia proposes India-Iran-Black Sea trade route
A visiting Armenian team, which comprised senior officials and experts, made an offer last week to create a Persian Gulf-Black Sea corridor that could connect Indian traders with Europe and Russia. The corridor, which would run parallel to the International North-South Transport Corridor (INSTC), would go from Mumbai to Bandar Abbas in Iran and then to Armenia, bypassing Azerbaijan. Armenia has asked India for investments in the corridor in its territory, and the increased tensions between Russia and the West has made the corridor a more viable option for international logistic and insurance companies. If realized, this corridor would strengthen the political and business ties between India and Armenia, as well as facilitate trade between India, Russia, and Europe.
India's need for additional trade routes to Europe has been put into focus due to the increasing tensions in the Suez Canal. As a result, Iran proposed a new international transport corridor project, Persian Gulf-Black Sea, to connect Iran with Europe via the South Caucasus. This corridor provides India with an excellent opportunity to bypass the Suez Canal and pursue its own trade route to Europe.
The corridor can be connected to Iran via either Armenia or Azerbaijan. Armenia and Azerbaijan have railway and highway connections with Georgia, and Azerbaijan has a railroad up to the Azerbaijan-Iran border. Furthermore, Russia and Iran have agreed to fund the construction of the Rasht-Astara line, a missing link of some 165 km inside Iran. This will enable the seamless movement of goods and services between the two countries. Azerbaijan also has a highway connection with Iran.
Given India's extensive experience in infrastructure projects abroad and its keen interest in the India-Europe transport corridor, Armenia has proposed to start negotiations with India to discuss the involvement of Indian funding and Indian companies into the project. This would be a great opportunity for India to benefit from Armenia's strong economic growth in the region, despite the war in the region.
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