India-Middle East-European Economic Corridor (IMEC) Announced on the Sidelines of G20 Summit

A Major Step Towards Global Connectivity and Economic Integration

In the spirit of its commitment to global connectivity, on the sidelines of the G20 Leaders’ Summit in New Delhi, the US, India, the European Union, and Saudi Arabia announced a Memorandum of Understanding (MoU) signed to establish the India-Middle East-European Economic Corridor (IMEC), with Germany, France, and Italy representing Europe. Prime Minister Narendra Modi called it a “major medium of economic integration between India, West Asia, and Europe.”

The corridor will be undertaken by the Partnership for Global Infrastructure Investment (PGII) Initiative by G7 nations. It is aimed at bridging the infrastructural gap in the Global South. Further details, the total cost, and the share of each participant country in the project are yet to be disclosed.

According to EU President Ursula von der Leyen, IMEC will be the most direct link between the countries, cutting travel time by 40%. The initiative has been tagged “a big deal” by US President Joe Biden.

Going by the official statement, the corridor will include a railway capable of delivering a “ship-to-rail transit network” as well as a method of laying cable for energy, digital communication, and pipes for the export of clean hydrogen. Divided into two corridors – one will connect India to the Arabian Gulf and the other Gulf to Europe.

IMEC is being speculated as a counter to China’s Belt and Road Initiative (BRI). The US and India have been aggressively promoting the project, which is seen as an outcome of tensions with Beijing.

In addition, it reduces India’s dependence on the Chabahar Port and the North-South Economic Corridor, aligning with the US policy to distance India from Russia and Iran. It is also expected to address issues such as reducing trade costs, lowering greenhouse gas emissions, trade efficiency, and generating jobs.

-Anushka Upadhyay