Indian PM Narendra Modi announced the launching of the India-Middle East-Europe mega economic corridor at the G20 Summit on Saturday. The project is an integral part of the Partnership for Global Infrastructure Investment.
The India-Middle East-European Corridor (IMEC) promises cooperation on connectivity and infrastructure between India, the UAE, Saudi Arabia, the EU, France, Italy, Germany, and the US.
What is the IMEC Project?
India and other G20 nations have signed a memorandum of understanding (MoU) to establish IMEC to enhance economic development through improved connectivity and economic integration.
According to the official statement, The IMEC will be categorised into two corridors: the east corridor, which will connect India to the Arabian Gulf, and the northern corridor, which will connect the Arabian Gulf to Europe.
The statement reads that the corridor will include a railway, which, once operational, will offer a dependable and affordable cross-border ship-to-rail transit network to support existing maritime and road transport routes, allowing goods and services to transit to, from, and between India, the UAE, Saudi Arabia, Jordan, Israel, and Europe.
Participating nations intend to install cable for power and digital connectivity along the railway route and a pipe for clean hydrogen export, the statement said.
Participating nations have agreed to work collectively and swiftly to plan and implement all parts of these two new transit routes to manage the complete spectrum of technical, design, finance, legal, and regulatory standards.
Purpose of IMEC
The IMEC corridor will safeguard regional supply chains, boost trade accessibility, and enable an increased emphasis on environmental, social, and government impacts, reports suggest.
Reports indicate that the corridor will improve efficiency, reduce prices, strengthen economic unity, create employment, and reduce greenhouse gas emissions, culminating in a revolutionary integration of Asia, Europe, and the Middle East.
Development of the corridor can also be viewed as a strategic reaction to China’s Belt and Road Initiative (BRI), which has increased China’s influence throughout Asia, Africa, and Europe. The establishment of IMEC highlights the worldwide shift in economic and geopolitical power, with India at the centre of this crucial corridor.
According to US officials, the project intends to connect Middle Eastern nations by train, and India by port, facilitating the flow of energy and trade from the Gulf to Europe by reducing shipping delays, prices, and fuel usage.
US Deputy National Security Advisor Jon Finer told AP that there are key reasons for developing this corridor. First, it would boost the economies of the nations involved by increasing energy flow and digital communications. Second, the initiative would assist in addressing the shortage of infrastructure hindering growth in low- and middle-income countries.
Israel Joins a Historic Partnership with Arab Nations
The inclusion of Israel, a country that has traditionally had conflicts with several Arab countries, is said to be the most significant component of this corridor. Israel joining the IMEC marks a significant change in Middle Eastern politics. The corridor will link Israel to its Arab neighbours, facilitating economic cooperation and a more interconnected Middle East.
Israeli PM Benjamin Netanyahu welcomed the announcement of the IMEC, saying, “Israel is at the focus of an unprecedented international project that will link infrastructure from Asia to Europe. This link will also realise a multi-year vision that will change the face of the Middle East, and Israel, and will affect the entire world.”
Leaders Welcome Initiative
On Saturday, PM Modi said, “Today, as we embark upon such a big connectivity initiative, we are sowing the seeds for future generations to dream bigger.”
“Enhancing connectivity with all regions has been a key priority for India,” Modi declared, speaking through a translator. “We believe that connectivity is a means to not only increase mutual trade between different countries but also increase mutual trust.”
US President Biden stated in a social media post, “proud to announce that the U.S., India, Saudi Arabia, UAE, France, Germany, Italy and EU finalised a historic agreement for a new India-Middle East-Europe Economic Corridor.” “This project is about more than just laying tracks. This is a game-changing regional investment,” he added.
Biden’s national security advisor, Jake Sullivan, said the network represented Biden’s vision for “far-reaching investments” that result from “effective American leadership” and a readiness to engage other nations as partners.
What is The India-Middle East-Europe Economic Corridor Launched at G20 Summit?
The IMEC corridor intends to safeguard regional supply chains, boost trade accessibility, and enable an increased emphasis on environmental, social, and government impacts.
September 11, 2023
IMAGE SOURCE: AFPIndian PM Narendra Modi, US President Joe Biden, and Saudi Arabian Crown Prince and Prime Minister Mohammed bin Salman shake hands at a G20 summit in New Delhi.