Russia and India are accelerating efforts to develop new logistics corridors and strengthen existing transport networks in anticipation of higher bilateral trade under a proposed Free Trade Agreement (FTA) between India and the Eurasian Economic Union (EAEU).
Officials and industry representatives from both countries are exploring multimodal transport routes that combine maritime, rail and road connectivity to improve cargo movement, reduce transit times and lower logistics costs. The initiative is aimed at ensuring that infrastructure keeps pace with the expected increase in trade volumes once the FTA comes into effect.
A key focus is the International North-South Transport Corridor (INSTC), which links India with Russia through Iran and the Caspian Sea. The corridor is expected to play a central role in facilitating faster movement of containers, bulk cargo and other goods between the two markets while providing an alternative to longer traditional shipping routes via the Suez Canal.
Both sides are also assessing additional maritime services, inland logistics hubs and customs cooperation measures to improve supply chain efficiency. Enhanced port connectivity, streamlined documentation and greater coordination among logistics providers are expected to support smoother cross-border trade.
The proposed India–EAEU FTA, currently under discussion, is expected to reduce tariffs on a wide range of products and expand market access for exporters. Trade officials believe the agreement could significantly boost bilateral commerce, creating stronger demand for efficient freight and logistics services.
India and Russia have witnessed growing trade ties in recent years, driven largely by increased energy shipments, fertilizers, pharmaceuticals, engineering goods and agricultural products. The planned logistics enhancements are intended to support this expanding trade relationship while improving resilience against global supply chain disruptions.
Industry stakeholders believe that developing dedicated transport corridors ahead of the FTA will enable businesses to capitalize on new trade opportunities immediately after the agreement is implemented, positioning both countries for sustained growth in bilateral commerce.
