Fresh Batches for IAS / PCS / HAS / HCS starting from 3rd Oct | Course Delivery Options: Online & Offline. We are offering following optionals: Public Administration, Sociology, History,PSIR, Psychology. For registration call at 8699010909
Demo Class

First Round Of Talks On India-Middle East-Europe Economic Corridor

By /

Context

  • The Indian delegation concluded its first round of talks with UAE officials on developing the ambitious India-Middle East-Europe Economic Corridor (IMEEC).

India-Middle East-Europe Economic Corridor (IMEC)

  • Participants: During the Delhi G20 Summit, India, USA, UAE, Saudi Arabia, France, Germany, Italy, and the European Union signed a Memorandum of Understanding (MoU) to establish the India-Middle Eastern Economic Corridor.
  • Objective: The corridor will encourage and provide impetus to economic development through enhanced connectivity and economic integration between Asia, West Asia, the Middle East, and Europe.

Components

  • The India-Middle East-Europe Economic Corridor will consist of two separate corridors,
  • The East corridor connecting India to West Asia/Middle East and
  • The Northern corridor connecting West Asia/Middle East to Europe.
  • The project would involve the building of a railway line across the Arabian Peninsula through the United Arab Emirates and Saudi Arabia and develop shipping connectivity to India and Europe on either end of this corridor.
  • The corridor could be further developed to transport energy through pipelines and data through an optical fiber link.

Ports That are Part of IMEC

  • India: Ports in Mundra (Gujarat), Kandla (Gujarat), and Jawaharlal Nehru Port Trust (Navi Mumbai).
  • Europe: Piraeus in Greece, Messina in Southern Italy, and Marseille in France.
  • Middle East: Ports include Fujairah, Jebel Ali, and Abu Dhabi in the UAE, as well as Dammam and Ras Al Khair ports in Saudi Arabia.
  • Israel: Haifa port.
  • Railway Line: The railway line will link Fujairah port in the UAE to Haifa port in Israel, passing through Saudi Arabia (Ghuwaifat and Haradh) and Jordan.

 Significance

  • Economic Development: By linking Asia, West Asia, the Middle East, and Europe through enhanced connectivity and economic integration, the corridor aims to give a boost to economic development in the regions.
  • Connectivity: The corridor will include a rail line, which, upon completion, will provide a reliable and cost-effective cross-border ship-to-rail transit network.
  • The rail line will supplement the existing multi-modal transport routes enhancing the trans-shipment of goods and services from South East Asia through India to West Asia/Middle East and Europe.
  • Eco-friendly Infrastructure: It emphasizes developing environmentally friendly infrastructure.
  • Transformative Integration: It intends to increase efficiency, reduce costs, secure regional supply chains, increase trade accessibility, enhance economic cooperation, generate jobs, and lower greenhouse gas emissions, resulting in a transformative integration of Asia, Europe, and the Middle East (West Asia).

Opportunities for India

  • Alternative to BRI: It is an alternative to China’s Belt and Road Initiative (BRI), which seeks to establish trade and infrastructure networks connecting Asia, Europe, and Africa.
  • Bypassing Pakistan: IMEC breaks Pakistan’s veto over India’s overland connectivity to the West. Since the 1990s, India has sought various trans-regional connectivity projects with Pakistan. However, Pakistan was adamant in its refusal to let India gain access to land-locked Afghanistan and Central Asia.
  • Indo-US collaboration in the Middle East: This project has broken the myth that India and the United States might work together in the Indo-Pacific but not in the Middle East.

Hurdle before IMEC

  • The Israel-Palestine conflict has put a pause on the normalization of Arab-Israel relations which is a key element of the multi-nation initiative.
  • Vulnerability of the Strait of Hormuz: The entire trade of the IMEC architecture flows through the Strait of Hormuz and with Iran’s proximity and control over the strait, the risk of disruptions remains very high.
  • The security challenges in the region have made other partners reluctant to invest in the project.

Way Forward

  • The geopolitical concerns need to be managed by striking a delicate balance in accommodating the geopolitical interests of the participating nations and addressing potential political sensitivities.
  • There is also a need to maintain the required security apparatus as the project passes through certain unstable regions of the world.