Budapest could also play an important role in the multi-modal International North-South Transport Corridor (INSTC) project. This would facilitate Hungary and India to be each other’s bridge to Asia and Europe respectively. The EAM’s visit is in keeping with the government’s priority of boosting ties with smaller nations. It also comes days after Vice President M. Venkaiah Naidu visited the three Baltic countries of Lithuania, Latvia and Estonia from August 17-21, in the first-ever such high-level visit from India. Mr Naidu’s visit came in the backdrop of India’s keenness to push the International North-South Transport Corridor project, that aims to link the Indian Ocean with the Baltic Sea, and provide seamless connectivity.

The North-South Transport Corridor project would help Asian and European countries transport their cargo through the Corridor at double speed compared to the Suez Canal. It is thought to be the most suitable route for transit traffic between Asia and Europe as only a few countries exist along the route, which means fewer border crossings, and easier for the countries to reach agreements.