India seeks new trade avenues

October 2, 2026

The current global climate, coupled with the protracted war between the US and Iran, has created a supply crisis for India, like other countries. Furthermore, India has set a goal of transforming its country from an import-based economy to an export-based one. To achieve this, it is crucial that the channels for selling goods from our country are easy, accessible, costeffective, and time-consuming. Since the disruption of container movement on the main Strait of Hormuz, Gulf countries have been searching for alternative routes for trade. Unfortunately, the Houthi rebels have prevented any such route from operating. A similar situation has arisen in India-Pakistan relations. We cannot use Pakistan’s airspace; when we take detours to deliver our products to specific countries, it not only takes longer but also increases costs. Recently, when Chinese President Xi Jinping visited India and held talks with Prime Minister Narendra Modi, one of the proposals was that if India were granted Chinese airspace for trade, it would provide an alternative route. This would save both time and money. India wants its airlines to explore the possibility of using Chinese airspace over Xinjiang in China. If this becomes possible, it would facilitate travel to Europe and North America and reduce fuel consumption. The closure of Pakistani airspace has currently increased these costs. Extensive discussions have taken place between India and China to enhance trade relations. India wants to expand its aviation and increase connectivity. Chinese airspace is crucial for this goal. Parts of Xinjiang airspace fall within the Chinese military’s reserve. However, if this permission is granted through mutual negotiations, it is estimated that weekly expenditures for Indian exporters would be reduced by $1.13 million. India is negotiating with China to allow the use of the Xinjiang corridor. If this is achieved, a major program to promote India’s exports could be launched, and Pakistan would also learn that if it closes its airspace, India has other options.