Eastern Maritime Corridor | 19 Dec 2024

Source: IE 

Why in News? 

The recent launch of the Eastern Maritime Corridor between Chennai and Vladivostok (Russia) has enhanced India-Russia trade by reducing shipping time and costs.  

• This new route is crucial for increasing trade in sectors like crude oil, coal, fertilizers, and metals, with India becoming the largest importer of Russian oil.  
• The corridor is expected to significantly reshape bilateral trade dynamics, promoting economic and strategic cooperation between the two nations. 

What is the Eastern Maritime Corridor (EMC)? 

• About: 
  • The Chennai-Vladivostok Eastern Maritime Corridor (EMC) is a sea link connecting the east coast of India (Chennai Port) with ports in the far-east region of Russia (Vladivostok Port). 
  • It passes through the Sea of Japan, the South China Sea, and the Malacca Strait.  
• Significance:  
  • Reduced Logistics Costs:  
    • EMC has reduced the shipping distance from 8,675 nautical miles (via the traditional St Petersburg-Mumbai route through Europe) to 5,600 nautical miles, cutting transit time from over 40 days to just 24 days.  
    • This is significant for India as it has surpassed China to become the largest buyer of Russian oil in July 2024. 
    • India imports over 85% of its crude oil demand.  
  • Diversification of Trade:  
    • The corridor facilitates not only crude oil shipments but also coal, LNG, fertilizers, and other commodities, broadening the trade relationship. 
  • Boost to India’s Maritime Sector:  
    • The corridor supports India’s maritime sector, which handles around 95% (by volume) and 70% (by value) of the country’s trade, contributing to its growth and efficiency. 
    • This new route aligns with India’s Maritime Vision 2030, which includes over 150 initiatives aimed at transforming the maritime sector. 
  • Strategic Importance:  
    • Vladivostok is the largest Russian port on the Pacific Ocean, and the corridor passes through the South China Sea and strengthens India’s strategic presence addressing China's dominance in the region. 
    • The Chennai-Vladivostok corridor is aligned with other initiatives, such as the Northern Sea Route and the International North-South Transport Corridor (INSTC). 
  • Advancing India’s Act Far East Policy:  
    • The EMC boosts India’s access to Russian resources and strengthens its position in the Pacific trade network.  
    • By enhancing regional connectivity, it promotes trade with East Asia, ASEAN, and Russia, facilitates multimodal transport, and supports infrastructure development.  
      • This also opens avenues for trade agreements, cultural exchanges, and tourism, positioning India as a key player in the region. 

What are Other Maritime Corridors Significant for India? 

• International North-South Transport Corridor (INSTC):  
  • INSTC is a 7,200 km multimodal transit route linking the Indian Ocean and Persian Gulf to the Caspian Sea via Iran, and further to northern Europe via St. Petersburg, Russia.  
    • It was launched in 2000 through a trilateral agreement between India, Iran, and Russia, it has expanded to include 13 member countries.  
  • It connects ship, rail, and road routes between India, Iran, Azerbaijan, Russia, Central Asia, and Europe.  
    • The corridor has 3 routes: the Central Corridor (India to Russia via Iran), the Western Corridor (Azerbaijan-Iran-India), and the Eastern Corridor (Russia to India through Central Asia). 
  • In June 2024 Russia sent two trains carrying coal to India through the INSTC for the first time. 

• India-Middle East-Europe Economic Corridor (IMEC) Project: 
  • The IMEC Project was announced at the G20 Summit (2023), the IMEC aims to connect India, the Middle East, and Europe through a network of railways, roads, and ship-to-rail links.  
  • It includes two corridors: the East Corridor linking India to the Arabian Gulf, and the Northern Corridor connecting the Gulf to Europe.  
  • The project will also feature an electricity cable, a hydrogen pipeline, and a high-speed data cable, fostering regional integration across Asia, Europe, and the Middle East.

• Northern Sea Route (NSR): 
  • The NSR is a 5,600 km Arctic shipping route connecting the Barents and Kara Seas to the Bering Strait.  
  • It offers up to 50% shorter transit times than traditional routes like the Suez Canal and gained attention after the 2021 Suez Canal blockage. 
    • It has also become an area of focus, with both nations working on projects related to Arctic shipping and polar navigation, providing a strategic shipping route between Western Eurasia and the Asia-Pacific. 
  • India is interested in the NSR due to growing imports of Russian crude oil and coal. The NSR is also key for balancing Russia-China influence in the region. 

What are the Key Aspects of India-Russia Relations? 

• Strategic Partnership: India and Russia formalized their strategic partnership in 2000, upgraded to a Special and Privileged Strategic Partnership in 2010.  
  • The goal is to achieve USD 50 billion in investment and USD 30 billion in trade by 2025, with a target of USD 100 billion by 2030. 
• Bilateral Trade and Investment: India-Russia trade reached USD 65.7 billion in FY 2023-24. The Key Import and Export From Russia (FY 2024): 
  • By Value: 
    • Imports: Crude oil, project goods, coal, coke, vegetable oils, and fertilizers. 
    • Exports:  processed minerals, iron and steel, tea, marine products, and coffee.  
  • By Quantity: 
    • Imports: Petroleum crude, coal, fertilizers, vegetable oil, and iron and steel,  
    • Exports: Processed minerals, iron and steel, tea, granite, and processed fruits and juices. 
  • Bilateral investments surpassed USD 30 billion in 2018, with a revised target of USD 50 billion by 2025. 
  • Indo-Russian JV for Vande Bharat Sleeper: The Indo-Russian JV Kinet has taken over the Marathwada Rail Coach Factory in Latur to manufacture 1,920 Vande Bharat Sleeper coaches.  
• Energy Cooperation: Russia plays a key role in India’s energy security, with both countries cooperating extensively in the oil and gas sectors.  
  • Russia’s state-owned energy firms have made significant investments in India’s energy infrastructure, while Indian companies are involved in oil exploration projects in Russia. 
• Defense and Security Cooperation: India and Russia share long-standing defense cooperation, guided by the IRIGC-M&MTC mechanism, with regular bilateral and multilateral military exercises like INDRA and Vostok 2022.  
  • Key defense projects include the supply of S-400 systems, licensed production of T-90 tanks and Su-30 MKI, MiG-29 and Kamov helicopters, INS Vikramaditya, Ak-203 rifles, and BrahMos missiles.  
  • The cooperation has evolved from a buyer-seller model to joint research, development, and production of advanced defense technologies. 
• Science and Technology: It spans areas like space (Gaganyaan), nanotechnology, and quantum computing.  
  • Both jointly developed the Kudankulam Nuclear Power Plant. Their partnership is guided by the 2021 roadmap for innovation, aiming to commercialize technologies and support joint projects.  
• Geopolitical and Regional Cooperation: 
  • The India-Russia relationship is underpinned by shared interests in global and regional security, including cooperation in multilateral forums like the United Nations and BRICS. 
  • Russia’s increasing focus on the Asia-Pacific region aligns with India’s strategic priorities, particularly in the context of balancing China’s maritime influence. 
• Economic Diplomacy and Taxation Agreements: 
  • The India-Russia Double Taxation Avoidance Agreement (DTAA), effective since 1996, is a key instrument in fostering cross-border investments and trade by eliminating double taxation and preventing fiscal evasion.