Trade Sector Updates – Falling Exports, TIES, MEIS, Foreign Trade Policy, etc.

India and the Northern Sea Route

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Northern Sea Route

Mains level: Read the attached story

Northern Sea Route

Central Idea

  • Murmansk, the gateway to the Arctic and the starting point of the Northern Sea Route (NSR), is witnessing a growing Indian presence in cargo traffic.

Why discuss this?

  • India accounts for 35% of the cargo handled by the Murmansk port in the first seven months of 2023.
  • This surge in Indian engagement in the Arctic holds significant implications for India’s economic and water security.

About Northern Sea Route

  • The Northern Sea Route (NSR) is a maritime shipping route that runs along the northern coast of Russia, connecting the Atlantic Ocean to the Pacific Ocean.
    • The North Sea lies between Great Britain, Denmark, Norway, Germany, the Netherlands, Belgium and France.
  • It traverses the Arctic Ocean and Siberian coastline, providing a shorter route between Europe and Asia compared to the traditional routes through the Suez Canal or the Panama Canal.
  • NSR stretches from the Barents Sea, near the Arctic archipelago of Novaya Zemlya, to the Bering Strait, separating Russia from Alaska

Significance of the Arctic for India

  • Climate Impact: The Arctic’s susceptibility to climate change holds potential consequences for India, impacting economic and water security.
  • Resource Prospects: The Arctic region harbors substantial untapped hydrocarbon reserves, including oil, gas, coal, zinc, and silver, making it an enticing prospect for India’s energy needs.
  • Sustainable Approach: India’s Arctic Policy of 2022 underscores adherence to UN Sustainable Development Goals in the region’s economic development.

India’s Arctic Journey

  • Historical Engagement: India’s connection with the Arctic dates back to the signing of the Svalbard Treaty in 1920.
  • Scientific Endeavors: India has undertaken various scientific studies and research initiatives in the Arctic, including atmospheric, marine, and glaciological studies.
  • Observations and Research: Notably, India’s research station “Himadri” in Ny-Alesund and its multi-sensor moored observatory and atmospheric laboratory demonstrate its commitment to Arctic research.

Reviving the NSR

  • NSR Overview: The NSR is the shortest shipping route connecting Europe and Asia-Pacific countries, traversing the Arctic Ocean.
  • Distance Advantage: The NSR boasts potential distance savings of up to 50% compared to traditional routes via Suez or Panama, gaining prominence after the 2021 Suez Canal blockage.
  • Russia’s Role: Russia, equipped with a nuclear-powered icebreaker fleet, ensures safe navigation by breaking ice along the NSR.

Drivers for India’s NSR Engagement

  • Cargo Traffic Growth: India’s involvement is fueled by the consistent rise in cargo traffic along the NSR, coupled with a 73% growth rate between 2018-2022.
  • Energy Imports: As India increasingly imports energy resources from Russia, the NSR offers a reliable and secure transportation avenue.
  • Strategic Transit: The Chennai-Vladivostok Maritime Corridor (CVMC) project aligns with India’s geographical position, enabling efficient transit routes and shorter transport times.

Conclusion

  • India’s burgeoning involvement in the Arctic, underscored by its significant role in the Northern Sea Route’s cargo traffic, exemplifies its strategic pursuit of diversified energy resources and enhanced trade corridors.
  • As India forges partnerships with Russia and navigates the challenges of a changing Arctic landscape, it’s poised to play a pivotal role in shaping the future of Arctic trade and sustainable development.

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