India moves to position itself as trading and transit hub, counters China’s project. Here’s how

India has joined United Nations’ TIR convention in a bid to position itself as a regional trading and transit hub.

UN TIR convention is an international customs transit system and enables goods to move under customs control across international borders without the payment of the duties and taxes.

India is the 71^st nation to join the TIR system, which has widest geographical coverage.

This gains significance as China's 'One Belt One Road' (OBOR) is the dominating project straddling economics and geopolitics.

Umberto de Pretto, the secretary general of IRU which manages the TIR Convention, told TOI from Geneva that India's accession would have a big impact on regional connectivity. "TIR can help implement the Bangladesh-Bhutan-India-Nepal (BBIN) Motor Vehicles Agreement by addressing policy incompatibility among the BBIN group. For example, Bangladesh does not recognise insurance policies made in India, Nepal or Bhutan. With TIR, there would be no need for bilateral arrangements as guarantors are covered by the global guarantee chain,” said Pretto.

Once the system is integrated, it will become easier to service African and Asian markets when the DMIC (Delhi-Mumbai Industrial Corridor) comes online.

China is already a part of the TIR.