New Delhi: Discussions are going on for opening an India-Iran-Armenia Trade Corridor comprising maritime and terrestrial routes, which will be part of the International North-South Transport Corridor (INSC) connecting Mumbai with Moscow. Armenian Deputy Minister for Economy Narek Teryan said this while speaking at an India-Armenia Business Forum in Yerevan on Thursday.
“Discussions are conducted with our partners in a tripartite format,” the Armenia News website quoted Teryan as saying. “There are pilot cargos that are passing through that route, but a lot needs to be done in order for the direction to be stable.” He said that India considers Armenia a strategic partner in the Caucasus and this is manifested in many domains, including civil.
Armenia and India are close to each other
“Historically, Armenia and India are close to each other, connected to each other,” Teryan further stated. “We see that they have come and are coming to Armenia from India. In addition, a lot of workforce has been coming to our country from India in the last two years, and for the most part, they are working quite successfully in many domains.”
He also said that Armenia and Armenian companies are also in discussions in various formats for the use of the Chabahar port in Iran. The port is a crucial link in the INSTC. In 2018, India took over the operations of the Chabahar port. The port provides India with the opportunity of bypassing Pakistan for shipment of goods.
India, Iran and Russia signed the INSTC agreement
The INSTC is a 7,200-km-long multi-mode network of ship, rail and road routes for moving freight. India, Iran and Russia had in September 2000 signed the INSTC agreement to build a corridor to provide the shortest multi-model transportation route linking the Indian Ocean and the Persian Gulf to the Caspian Sea via Iran and St Petersburg. From St Petersburg, North Europe is within easy reach via Russia.
Meanwhile, in a separate development earlier this week, India dispatched its first batch of strategic air cargo to Armenia through an air trade corridor via Iran. According to Indian Defence Research Wing reports, HALCON, a joint working group (JWG) formed by Hindustan Aeronautics Limited (HAL) and Container Corporation India (CONCOR), has entered the significant realm of handling strategic air cargo exports to Armenia. Details of the cargo have, however, not been revealed.
Defence cooperation a key pillar of India-Armenia ties
It is worth mentioning here that in recent years, defence cooperation has emerged as a key pillar of India-Armenia relations. Last year, India struck a Rs 6,000-crore deal to export the indigenously developed Akash medium-range surface-to-air missile (SAM).
The Akash SAM system was developed by India’s Defence Research and Development Organisation (DRDO) and is produced by Hyderabad-based Bharat Dynamics Ltd (BDL). The Akash missile system can target aircraft up to 45 km away. It has the capability to neutralise aerial targets like fighter jets, cruise missiles and air-to-surface missiles as well as ballistic missiles. It is in operational service with the Indian Army and the Indian Air Force.
Apart from the Akash SAM system, New Delhi has engaged in significant military equipment sales to Yerevan. A notable instance occurred in March 2020 when Armenia, becoming the first international client, acquired the Indian Swathi radar system at a cost of $40 million. This system, a collaborative effort between the DRDO and Bharat Electronics Limited (BEL), represents the latest generation of phased array or electronically steered radars utilised by ground forces to detect and guide counter-battery fire against enemy ordnances.
Then again, in September 2022, a $245-million contract was signed for the Pinaka multi-barrel rocket launchers, anti-tank rockets, and various types of ammunition. India has key interests in boosting defence cooperation with Armenia. Over the last few years, the India-Armenia relationship has become very prominent because of a strategic angle. Armenia, it may be mentioned was attacked by Azerbaijan and Azerbaijan is supported by Pakistan and Turkey.
India needs to counter the trilateral axis of Pakistan, Azerbaijan and Turkey
According to Abhinav Pandya, founder, director and CEO of the Usanas Foundation think tank, this is very crucial to New Delhi as Pakistan is India’s arch-enemy. Azerbaijan and Turkey support Pakistan on the Kashmir issue. So, India needs to counter the trilateral axis of Pakistan, Azerbaijan and Turkey in the South Caucasus region. This is why India is supplying defence equipment to Armenia. Armenia supports India on the Kashmir issue.
Secondly, India is very interested in defence cooperation with Armenia because of the various strategic connectivity projects like the INSTC Since the project is not making much progress, Armenia is being seen as a country that can provide a viable alternative corridor instead of through Azerbaijan.
If Pakistan and Turkey establish their stronghold in that region, it would be very difficult to protect such a strategic connectivity project as the INSTC. “Pakistan is an expert in creating insurgency,” Pandya had told ETV Bharat. “That’s why India needs to have a strong footprint in that area.” In recent years, trade between India and Armenia has also been on the rise. According to figures provided by the Ministry of External Affairs, in 2022-23, bilateral trade stood at $134.1 million.
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