A new agreement, allowing goods to cross along a passageway stretching between Russia and India and passing through Iran, is expected to upgrade economic transactions between the countries. The three-way agreement, signed September 12, is anticipated to provide a positive alternative to the existing and complex Indian-Russian route of trade via the Suez Canal.
The cargo, arriving from the western ports of India, will travel by sea to the port of Bander Abbas in Iran. From that point, the goods are to be transferred by train to ports along the Caspian Sea, where they will be taken by ship to the Russian port of Astrakhan. From there, trains will carry the goods and distribute them throughout local Russian markets.
According to a report by the Business Standard, India will be able to enjoy easier access to the Russian markets, as this new route will cut the transit time by about 15 days, and the costs by 20 to 30 percent. Furthermore, Indian exports are hoped to penetrate the European markets, an objective that has not yet been achieved.
The Indian director of the Ministry of Surface Transport, R.D. Meena asserted that this deal will have a positive effect on the trade at points of entry, ease the movement of goods along the routes of transport and simplify the formalities dealing with customs. Undoubtedly, all three countries will be able to enjoy the positive outputs of such a relaxation in international trade procedures. — (Albawaba-MEBG)
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