India Negotiates a New Trade Route with Armenia and Iran to Russia and Europe

Armenia has proposed the launch of a corridor linking the Persian Gulf to the Black Sea to connect Indian traders with Russia and Europe. This was reported by The Economic Times.

The proposal was made last week by an Armenian delegation that arrived in India, consisting of high-ranking officials and experts. The Armenian Foreign Minister Ararat Mirzoyan was also present in India.

In an effort to enhance economic ties, sources familiar with the proposal told the publication that Armenia is looking to attract more Indian investments in infrastructure in partnership with India and Central Asia. Having developed closer strategic ties with India over the past few years, Armenia aims to advance discussions with New Delhi to reinvigorate the ambitious North-South international corridor project, which has the support of India as well.

The envisioned corridor, which will run parallel to the North-South International Transport Corridor (INSTC), will connect Mumbai to Iran's Bandar Abbas, and then proceed to Armenia and either Europe or Russia, circumventing Azerbaijan, with which India has limited relations amidst Turkey and Pakistan's close ties.

Armenia, which has strengthened its links with India in recent years particularly through defense exports, has requested Indian investments to construct the corridor within its territory, Armenian government sources informed Economic Times.

Since the onset of the Russia-Ukraine conflict, India's trade with Russia has soared via routes linking Mumbai to Iran and the Caspian Sea. Azerbaijan is a key element of the North-South international transport hub, yet it has not completed the necessary infrastructure construction.

The Persian Gulf-Black Sea corridor aligns well with India's plans as it seeks additional routes to reach Europe, bypassing the Suez Canal and avoiding the negative repercussions of the Russia-West confrontation.

Given Indian companies' extensive experience in large-scale infrastructure projects abroad and India's interest in launching a transport corridor from India to Europe via Iran and Georgia, Armenia is planning to initiate talks with India to discuss Indian financing and the involvement of Indian companies in the project.