India and Uzbekistan agree on pilot merchant shipping through Chabahar port

As part of ongoing negotiations, India and Uzbekistan have agreed to conduct a pilot containerized cargo shipment from Tashkent to India via a hybrid land-sea route via Iran’s port of Chabahar. Union Minister Sarbananda Sonowal met Deputy Prime Minister and Minister of Investment and Foreign Trade of Uzbekistan Jamshid Khodjaev to finalize the deal.

“Both India and Uzbekistan agreed that this new perspective could open up future possibilities of a Trans-Caspian multimodal transit corridor between the regions of Central Asia and South Asia,” according to a document from the Ministry of Ports, Shipping and Waterways. The shipment will reach India’s Jawaharlal Nehru Port (JNPT) in Navi Mumbai.

The delivery is expected to take place in the next 15 to 20 days, an official familiar with the matter said.

This will not only open up new trade opportunities but also strengthen the viability of trade between the Central Asian and South Asian markets, Sonowal said after the meeting.

Since the Russian invasion of Ukraine, talks to expand trade through the International North-South Transport Corridor (INSTC) have gained momentum. The route, which depends on Iran’s Chabahar port as a key pillar, is India’s quest for faster and smoother trade with Russia, Europe and the Central Asian economies.


Also Read:India Received Highest Aid to Trade of Developed Countries in 2020

Uzbekistan’s Deputy Prime Minister Khodjaev is on a visit to India to meet Trade Minister Piyush Goyal for an Intergovernmental Commission meeting focused on agriculture, textiles and leather, among other things. Khodjaev also met with Union Agriculture Minister Narendra Tomar on Thursday.

The two countries aim to more than double their bilateral trade to over $1 billion. However, connectivity was an issue they hope to solve via the Iranian port. In 2018 Chabahar Port was acquired by India Ports Global Ltd through its subsidiary India Ports Global Chabahar Free Zone (IPGCFZ).

The Chabahar port, once linked by all-weather highways on the INSTC route, is India’s chance to boost trade in Central Asia, which the center expects to see potential eight times the current $678 million, according to reports.

Meanwhile, Foreign Minister S. Jaishankar is also visiting the Uzbek capital ahead of Prime Minister Narendra Modi’s visit in September.

The two governments are also exploring trade opportunities in traditional medicine. The Ministry of AYUSH will deploy a team of professionals to Uzbekistan to help create a roadmap to rejuvenate and develop their traditional medical practices.

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