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India: Logistics crisis amplifies demand for North-South Corridor

Written by The Frontier Post

F.P. Report
KAZAN: The current crisis in logistics increases the likelihood of a scenario in which the international transport corridor “North-South” will be used as a good alternative, said Indian Ambassador to Russia Pawan Kapoor.
“The blocking of the Suez Canal in 2021 and the current crisis in logistics associated with the refusal of most ports to serve Russian ships strengthened the optimistic scenario for using this corridor as the fastest, most efficient way to transport goods,” he said during a session on the transport corridor “North -South”, at the summit “Russia-Islamic World: KazanSummit”.
It is important for the continuation of trade between Russia and India, he said, but the corridor will benefit everyone by reducing the time and cost of transportation.
“Our preliminary estimate suggests that the transportation of goods can be 30% cheaper,” he said, adding that the goods are already moving, but in insufficient volumes.
KazanSummit allows the Islamic world to demonstrate the wide possibilities of Russian regions with a Muslim population. President of Tatarstan Rustam Minnikhanov said at the plenary session of the XIII KazanSummit Intern-ational Economic Summit.
According to him, KazanSummit is an effective economic tool of the Russia-Islamic World Strategic Vision Group.
Minnikhanov noted that the Islamic world is a unique civilizational community with its own interests in international politics, economics and humanitarian interaction. The Islamic economy is an integral part of the world economy, and the total volume of its assets is estimated by experts at the level of 3.6 trillion US dollars. By 2025, it should increase to $4.9 trillion.
“Of course, various global challenges of recent years and months cannot but have a negative impact on the Islamic economy. However, there is also a recovery of economic life. Halal consumer spending, investment, and Islamic fintech are projected to rise.
An important area of growth is the halal sector. It is no coincidence that many of the events of this summit are devoted to discussing this important topic and the sharing economy,” he said.
The President of Tatar-stan noted that in the modern world, halal is a standard and a guarantor of the quality of goods and services. He pointed out that state regulation, elimination of legislative and tax gaps associated with joint consumption, the volume of which, obviously, will increase every year, becomes an urgent task.
Minnikhanov further noted that Islamic banking may be in demand in regions of Russia with a high proportion of the Muslim population.
He expressed confidence that despite Western sanctions, most of the OIC member countries continue to interact with Russia.
The head of the Ministry of Economic Development of the Russian Federation, Maxim Reshetnikov, noted that the role of Muslim countries is growing noticeably.
He stressed that Russia has long been living under sanctions. “We have learned to adapt to changing circumstances. And now the Russian economy has shown its stability. The situation on the currency and financial markets stabilized, there was no sharp decline in production and explosive growth in unemployment, inflation slowed down. Following inflation, the key rate decreases. Lending is being restored, including through government programs to support and lend to citizens and businesses. The exchange rate of the national currency is strengthening. A safety margin has been formed in Russia for the further transformation of our economy and its growth,” the minister said.
“In the modern world, the role of Muslim countries is growing noticeably. The volume of assets of the Islamic economy is estimated at 3.6 trillion US dollars, Maxim Reshetnikov said. – We are ready to develop partnership relations both on a bilateral basis and within the framework of the Organization of Islamic Cooperation. Moreover, the basis for growth has already been created. Over the past 3 years, Russia’s trade turnover with the OIC states has increased by a quarter.
According to him, it’s time to develop joint projects using new opportunities. “First of all, this concerns logistics and projects to create an international North-South transport corridor – it will strengthen foreign trade cooperation with the countries of the Caspian basin and the Persian Gulf. One example of using the North-South corridor is the development of the Agroexpress project. Further development will help increase supplies and ensure the saturation of markets with the necessary agricultural products,” the minister is sure.

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