Jaishankar stresses need to boost India-Central Asia links, Pg6

• Context: The India-Central Asia Business Council meeting was held on June 5, 2025, in New Delhi, ahead of the fourth India-Central Asia Dialogue scheduled for today.

• EAM S. Jaishankar calls for enhanced India-Central Asia connectivity and increased trade via Chabahar Port.

• Urges use of national currencies for mutual settlement of trade; supports mechanisms like UPI and Vostro accounts.

• India-Central Asia bilateral trade currently stands at $2 billion, with vast untapped potential.

Detailed Insights:

• The Chabahar Port in Iran, developed with Indian assistance, is seen as a strategic gateway for access to Central Asia, bypassing Pakistan.

• Reviving the INSTC, a multimodal transport route linking India to Russia via Iran and Central Asia, is crucial to lowering transit costs and time.

• The current geopolitical climateincluding volatility in global trade and sanctions regimeshas made alternative trade corridors a priority for India.

• Steps like the opening of Special Rupee Vostro Accounts and exploration of digital payment systems (UPI) indicate a push for currency independence from USD-dominated trade.

• The dialogue comes amid India's strategic outreach to Taliban-ruled Afghanistan, and recent anti-terror operations, signaling deeper security coordination in the region.

Key Concepts Involved:

• INSTC (International North-South Transport Corridor): A 7,200-km multimodal network (ship, rail, road) connecting India to Europe via Iran and Central Asia.

• Vostro Account: An account a foreign bank holds with an Indian bank in Indian rupees, used for trade settlement.

Mains Mock Question:

Discuss the significance of Indias engagement with Central Asia in the context of regional connectivity, energy security, and geopolitical balancing. How can the Chabahar Port and INSTC serve as tools of strategic leverage?