28 C
Mumbai
Friday, June 21, 2024
spot_img

How the IMEC promotes economic growth and trade between  India, Middle East & Europe

The India-Middle East-Europe Economic Corridor MoU includes India, the US, Saudi Arabia, the EU, the UAE, France, Germany, and Italy. IMEC promotes economic growth and trade in the Indian Ocean, Indian subcontinent, Middle East, and Europe…

To promote multimodal connectivity, India, the US, Saudi Arabia, the EU, the UAE, France, Germany, and Italy signed an MoU to create the India-Middle East-Europe Economic Corridor at the G20 Summit in New Delhi. IMEC is a revival of ancient maritime and overland commercial links between the Arabian Sea and the Mediterranean Sea. It could boost Indian Ocean, Indian subcontinent, Middle East, and European economic growth and trade cooperation. Rearrangement of regional strategic outcomes will favor the US, Europe, India, and participating Middle Eastern nations.

The Partnership for Global of the Chinese debt trap linked to its Belt and Road Initiative balances China’s growing influence in the Middle East, the EU’s persistence to deepen trade and investment with the Middle East countries, particularly in response to the Russia-Ukraine war, and India’s search for a feasible trans-regional commercial route to replace the sluggish Chabahar route for the International.

After the railway network between the UAE’s Jabel Ali and Israel’s Haifa port is completed, the IMEC will allow India and Europe to move goods more cheaply and quickly than the Suez Canal. The India-Middle East-Europe Economic Corridor will reduce shipping time between Mumbai and Piraeus, the western nodal port of the corridor in Greece, by 40% compared to the Suez Canal route, according to Professor Michael Tanchum. IMEC is more than a business corridor. The corridor will reduce greenhouse emissions, shipping costs, times, and fuel usage, improve trade facilitation, and secure regional supply chains. Above and beyond, it will witness and serve the growing economic independence of India, the Middle East, and Europe, which is expected to transform their economies.

IMEC’s ties to the Partnership for Global Infrastructure Investment (PGII), a G-7-backed effort to fund infrastructure projects worldwide, unintentionally amplify India’s voice for the Global South. The West supported India’s efforts to include the African Union in the G20, the IMEC initiative, and the launch of the Global Biofuels Alliance on the sidelines of the G20 Summit because they gave India an edge over China in advocating for Global South concerns.  The project allows intense strategic maneuvers in the northern and western Indian Ocean. European navies are more active in the northern Indian Ocean and Mediterranean. Peace and security in the Arabian Sea and Gulf of Aden depend on trilaterals with India and France.  The Mumbai-Jaleb Ali maritime trade route is near Iranian and Pakistani waters, so the China-Pakistan-Iran naval alliance must be monitored.

Saudi Arabia hopes to expand their hydrocarbon energy partnership to include renewable energy, energy efficiency, petroleum, and strategic petroleum reserves. Professor Michael Tanchum writes, “Building on the establishment of an Arabian strategic reserve in India, the UAE and Saudi Arabia are working with New Delhi to develop an integrated hydrocarbon value chain through petrochemical manufacturing.” The recently launched Middle East Food Corridor by India, Israel, and the UAE is watched by most Middle Eastern countries facing staple food shortages. The food corridor’s success will diversify and strengthen India’s Middle East relations. Three innovations—a food corridor (food supply chain), an integrated hydrocarbon value chain, and green energy and innovative technology manufacturing value chains—will revitalize India’s economic and strategic relationship with the Middle East. With the support of 8.5 million Indian diasporas in the Middle East, the project has great potential to serve Indian goods.

The corridor will complete India’s north-west connectivity post-participation. Dr. Jitendra Singh, Union Minister of State (Independent Charge) Science and Technology, stated, “Bharat-Middle East-Europe Economic Corridor redeems post-partition India’s quest for extended and deeper connectivity in the region.” The IMEC also shows the success of India’s Look West policy, which has intensified efforts to engage the Middle East’s contrast pillars since the Modi government’s first term and coincides with international politics. The proposed corridor also reflects India’s growing economic and strategic ties with Pakistan’s old allies, the UAE and Saudi Arabia.  The proposed India-Middle East corridor project also aims to maintain Pakistan’s isolation in the region. It’s fascinating to see how India is pursuing a successful Pakistan policy without Pakistan.

Conclusion

The G20 Summit in New Delhi saw India, the US, Saudi Arabia, the EU, the UAE, France, Germany, and Italy sign the India-Middle East-Europe Economic Corridor (IMEC). IMEC promotes multimodal connectivity, economic growth, and trade cooperation in the Indian Ocean, Indian subcontinent, Middle East, and Europe. The project will cut Mumbai-Piraeus shipping time by 40% over the Suez Canal.

The IMEC’s ties to the Partnership for Global Infrastructure Investment (PGII), a G-7-backed effort to fund infrastructure projects worldwide, unintentionally amplify India’s voice for the Global South. The project allows intense strategic maneuvers in the northern and western Indian Ocean, with European navies more active in the northern Indian Ocean and Mediterranean. Peace and security in the Arabian Sea and Gulf of Aden depend on trilaterals with India and France.

Saudi Arabia hopes to expand their hydrocarbon energy partnership to include renewable energy, energy efficiency, petroleum, and strategic petroleum reserves. The recently launched Middle East Food Corridor by India, Israel, and the UAE is watched by most Middle Eastern countries facing staple food shortages. The food corridor’s success will diversify and strengthen India’s Middle East relations.

The IMEC will complete India’s north-west connectivity post-participation and reflect India’s Look West policy, which has intensified efforts to engage the Middle East’s contrast pillars since the Modi government’s first term and coincides with international politics. The proposed India-Middle East corridor project also aims to maintain Pakistan’s isolation in the region.

Newsdesk

Related Articles

Latest Articles