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India-Middle East-Europe Economic Corridor (IMEC) hails a new era in global connectivity
11 September 2023
India, the European Union, the United States and Saudi Arabia announced a mega deal to establish the India-Middle East-Europe Economic Corridor (IMEC) at an event on the sidelines of the G20 summit on Saturday. The leaders of India, Italy, France, Germany, the United States, the United Arab Emirates, the European Union and Saudi Arabia signed the memorandum of understanding.
While announcing the corridor at the G20 summit, Prime Minister Narendra Modi said that IMEC will usher in a new chapter in global connectivity and sustainable development. He also stated that the corridor would act as a "major medium of economic integration between India, West Asia, and Europe”.
The project will be developed under the G7 nations’ Partnership for Global Infrastructure Investment (PGII) initiative. PGII aims to bridge the infrastructure gap in developing countries. The new IMEC project is being seen as a response to China’s Belt and Road initiative. While the cost of the project has not been officially announced, reports indicated that the countries might spend around $20 billion on developing the corridor. The new project will consist of two corridors. The east corridor will connect India with Gulf countries and the northern corridor will connect Arabian Gulf with Europe.
The corridors will consist of a ship-to-rail transit network to facilitate cost-effective transport routes for the countries. The memorandum of understanding read,” It will enable goods and services to transit to, from, and between India, the UAE, Saudi Arabia, Jordan, Israel, and Europe.” The countries also plan to lay down a cable network for electricity and digital connectivity along with pipes for clean hydrogen export.
EU President Ursula von der Leyen said that IMEC will be the most direct connection between the countries and it is expected to cut travel time by 40 per cent.