India of February 1, 2018 joined the Ashgabat agreement which envisages setting up of an international transport and transit corridor linking central Asia with the Persian Gulf to significantly ramp up trade and investment.
Upon receipt of approval of the Union Cabinet for India's accession to the Ashgabat Agreement, informed India that all the four founding members have consented to the accession of India (to the agreement). Besides Turkmenistan, the other founding members of the agreement are Iran, Oman and Uzbekistan.
Ashgabat Agreement
Ashgabat Agreement aims at establishment of Internation Transport and Transit Corridorbetween Iran, Oman, Turkmenistan and Uzbekistan signed on April 25, 2011. It is maned after capital of Turkmenistan, Ashgabat. It establishes international transport and transit corridor between Central Asia and the Persian Gulf countries. Kazakhstan joined the grouping in 2015 and Pakistan in October 2016.
When Rashid Meredov, Deputy Prime Minister and Trade Minister of Turkmenistan, visited India In August 2017,Nitin Gadkari, Minister for Road Transport and Shipping discussed with him the ways to established a transport transit corridor between Iran, Oman and Turkmenistan.
They also discussed ways to expand and deepen bilateral cooperation. Turkmenistan is known for having one of the largest gas reserves globally.
Significance of accession to Agreement
Accession to the Agreement would diversity India's connectivity options with Central Asia and have a positive influence on India's trade and commercial ties with the region.
It would enable India to utilise this existing tranport and transit corridor to facilitate trade and commercial interaction with the Eurasian region. This agreement will make it possible to enhance connectivity within Eurasian region and synchronize it with other transport corridors within that region including the International North-South Transport Corridor (INSTC).
The international North-South Transport Corridor, a 72,00 kilometer long freight route connecting India, Iran Azerbaijan and Russia via ship, rail and road, is meant to connect Northern Europe with Southeast Asia. The main objective of the INSTC is to provide an alternative to the traditional routes carried out by sea through the Suez Canal and the Mediterranean and the Baltic Sea.
The External Affairs Ministry in 2017 had a multi-stakeholder meet focussed on possible routes of INSTC, its popularisation, development and optimal Utilisation of Chabahar port to complement INSTC and to provide connectivity to Central Asia, modalities of and Impendiments to multi-modal transport and way ahead.
