India needs to up its game in the Middle East in view of the shifting geopolitics in the region due to China’s growing influence. Beijing has successfully brokered a deal between arch rivals Iran and Saudi Arabia, leading to the revival of diplomatic ties recently between the two major Islamic powers. This could have far-reaching implications for international politics in general and Asia in particular. For India, the development provides a reality check on Beijing’s growing role in shaping global events. Of particular concern is the future of the ambitious International North-South Transport Corridor (INSTC).
Announced in September 2000 by India, Russia and Iran, this 7,200-km-long multimodal transport corridor connects the Indian Ocean and the Persian Gulf to the Caspian Sea via Iran and is then connected to Russia and Northern Europe. Both Iran and Saudi Arabia are important trading partners for India, which has strong economic and strategic interests in the Middle East through the INSTC. For India, the INSTC is now more crucial than ever before and it needs to aggressively push for tapping the full potential of the project. This year, India holds the presidency of the Shanghai Cooperation Organisation. The current geopolitical turmoil and the decoupling of Russia and the West – in the wake of Russia’s invasion of Ukraine – present an opportunity for India and the INSTC. India has a lot to gain once there is seamless rail freight connectivity through Iran for the INSTC.