PM IAS ACADEMY MAY CA Compilation 2025
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About International North-South Transport Corridor
(INSTC)
It is a 7,200-km-long multi-modal
transportation network involving sea, rail,
and road routes.
INSTC was established in the year 2000,
with the founding agreement signed in St.
Petersburg by India, Iran, and Russia.
It aims to link the Indian Ocean and Persian
Gulf with the Caspian Sea via Iran, and then
further onward to Northern Europe via
Russia’s St. Petersburg.
The corridor significantly shortens trade
routes between India and Europe, offering a
faster and cheaper alternative to the Suez
Canal route.
Currently, there are 13 member
countries: India, Iran, Russia, Azerbaijan,
Armenia, Kazakhstan, Kyrgyzstan,
Tajikistan, Turkey, Ukraine, Belarus, Oman,
and Syria. Additionally, Bulgaria has joined
as an Observer State.
India plays a pivotal role in the INSTC, with
the Chabahar Port in Iran serving as a key
node, facilitating access to Afghanistan and
Central Asia while bypassing Pakistan.
India and the European Union (EU)
Syllabus: GS2/International Relations
Context
India and the European Union (EU) chief
negotiators have concluded another round
of talks on the proposed free trade
agreement (FTA) and agreed to reach a deal
in two phases.
India-EU Free Trade Agreement (FTA) Negotiations
Overview
Negotiation Resumption: Talks resumed in
June 2022 after an 8-year hiatus (stalled in
2013 due to market access disagreements).
Objective: To finalize a comprehensive trade
agreement covering goods, services,
investments, and geographical indications.
Negotiation Structure: The agreement will
be concluded in two phases, following
India’s phased approach used in previous
FTAs (e.g., with Australia).
o This is partly due to the volatile
global trade environment, including
US tariff actions.
Prime Minister Narendra Modi and the
European Commission President agreed to
seal the deal by the end of this year.
Key Focus Areas
Market Access: Duty cuts demanded by the
EU in automobiles, medical devices, wines,
spirits, meat, and poultry.
Services and Investments: The talks focused
on areas like market access offers in goods,
services, and investment.
Regulatory Aspects: Stronger Intellectual
Property Rights (IPR) framework.
o Agreements on sanitary and
phytosanitary measures, technical
barriers to trade, customs,
government procurement, and
sustainability.
Potential Benefits
Increased competitiveness for Indian
exports like ready-made garments,
pharmaceuticals, steel, petroleum products,
and electrical machinery.
Stronger investment protection and clearer
dispute settlement mechanisms.
Enhanced bilateral cooperation in
innovation and sustainable development.
India-EU relations
Political cooperation: India-EU relations
date to the early 1960s, and a cooperation
agreement signed in 1994 took the bilateral
relationship beyond trade and economic
cooperation.
o The first India-EU Summit, in 2000,
marked a watershed in the
evolution of the relationship.