Development Pathways and the International North-South Transport Corridor in South Asia

Abstract: The International North-South Transport Corridor (INSTC) represents a critical multi-modal trade network stretching from India to Russia via Iran and Central Asia, fostering economic integration and strategic connectivity in South Asia. This study explores the developmental pathways activated by the INSTC in South Asia, focusing on the economic, infrastructural, and geopolitical dimensions of the corridor. This study examines how the INSTC contributes to sustainable development pathways in South Asia by enhancing regional trade integration, promoting economic diversification, and encouraging green logistics. By reducing transit distances and times, the INSTC has the potential to decrease carbon emissions and support energy-efficient transport, aligning with sustainable development goals (SDGs) in the region. This paper examines the corridor's role in transforming regional trade dynamics, as well as its implications for national development strategies and South Asia's position in the global economy. The analysis addresses both opportunities and challenges, including infrastructure gaps, regulatory hurdles, and geopolitical competition with other connectivity initiatives, such as China’s Belt and Road Initiative (BRI). Through a comparative lens, this study highlights the INSTC's potential to reshape development pathways across South Asia, influencing regional alliances, trade policies, and energy security strategies. The findings underscore the corridor’s strategic significance as a conduit for South Asia’s deeper integration with the Eurasian economic zone, offering pathways for sustainable development and regional cooperation amidst shifting geopolitical alignments.