New Delhi: In a landmark decision taken at the G20 Summit 2023 in New Delhi Saturday September 09, 2023, the member states have agreed to work together to establish an Economic Corridor linking India, Middle East and Europe.
India, Saudi Arabia, United Arab Emirates (UAE), European Union, Germany, France, Italy and the United States signed a Memorandum of Understanding (MoU) to establish India-Middle East-Europe Economic Corridor (IMEEC) at a special event held on the side-lines of the G20 Summit.
“Pursuant to this Memorandum of Understanding, the governments of the Kingdom of Saudi Arabia, the European Union, the Republic of India, the United Arab Emirates (UAE), the French Republic, the Federal Republic of Germany, the Italian Republic, and the United States of America (the “Participants”) commit to work together to establish the India – Middle East – Europe Economic Corridor (IMEC)”, a White House statement released today said.
“The IMEC is expected to stimulate economic development through enhanced connectivity and economic integration between Asia, the Arabian Gulf, and Europe”, it said.
The IMEC will be comprised of two separate corridors, the east corridor connecting India to the Arabian Gulf and the northern corridor connecting the Arabian Gulf to Europe.
“It will include a railway that, upon completion, will provide a reliable and cost-effective cross-border ship-to-rail transit network to supplement existing maritime and road transport routes – enabling goods and services to transit to, from, and between India, the UAE, Saudi Arabia, Jordan, Israel, and Europe”, the statement said.
Along the railway route, Participants intend to enable the laying of cable for electricity and digital connectivity, as well as pipe for clean hydrogen export.
“This corridor will secure regional supply chains, increase trade accessibility, improve trade facilitation, and support an increased emphasis on environmental social, and government impacts”, White House said. “Participants intend that the corridor will increase efficiencies, reduce costs, enhance economic unity, generate jobs, and lower greenhouse gas emissions – – resulting in a transformative integration of Asia, Europe and the Middle East”, it said.
“This corridor will secure regional supply chains, increase trade accessibility, improve trade facilitation, and support an increased emphasis on environmental social, and government impacts”, White House said.
“Participants intend that the corridor will increase efficiencies, reduce costs, enhance economic unity, generate jobs, and lower greenhouse gas emissions – – resulting in a transformative integration of Asia, Europe and the Middle East”, it said.
The announcement of the new economic corridor, which many see as an alternative to China's Belt and Road Initiative, was made by Saudi Arabia’s Crown Prince Mohammed bin Salman at the special event held on the first day of the 2-day G20 Summit that began in New Delhi Saturday.
“The project seeks to achieve the common interests of “our countries by strengthening economic interdependence”, Mohammed bin Salman said.
He said the new corridor will contribute to developing and rehabilitating the infrastructure that includes railways, and ports and will help increase the exchange of goods and services.
The crown prince said the project will enhance trade exchange between the participating countries and boost the import of energy supplies including hydrogen to ensure energy security.
Prime Minister Narendra Modi while addressing the event to launch the India-Middle East-Europe Economic Corridor emphasised on respect for sovereignty and territorial integrity of all nations while promoting connectivity initiatives.
“Charting a journey of shared aspirations and dreams, the India-Middle East-Europe Economic Corridor promises to be a beacon of cooperation, innovation, and shared progress. As history unfolds, may this corridor be a testament to human endeavor and unity across continents”, PM Modi later wrote on X, formerly known as Twitter.
The announcement of India-Middle East-Europe (IMEEC) comes when China is preparing an important meeting on its Belt and Road Initiative in Beijing next month. Russian President Putin who skipped the G20 Summit, has already said he will be attending the meeting on Belt and Road Initiative to be held in the Chinese capital.
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