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Source: The post is based on the article “India-Middle East-Europe Corridor: The way to a new world order” published in The Indian Express on 19th September 2023.
Syllabus: GS 2 – International Relations – Bilateral, Regional and Global Groupings and Agreements involving India and/or affecting India’s interests
Relevance: About the India-Middle East-Europe Economic Corridor (IMEC).
News: India, the United States, Germany, Saudi Arabia, the UAE, Italy, and the EU have decided to establish the India-Middle East-Europe Economic Corridor (IMEC).
What is the India-Middle East-Europe Economic Corridor (IMEC)?
IMEC comprises two corridors: an eastern one connecting India to the Arabian Gulf and a northern corridor linking the Arabian Gulf to Europe. Both ends of the IMEC corridor have robust port, rail, and road infrastructure.
While India has a vast, integrated railroad network and mega ports in the east, in the west of the IMEC, the Mediterranean Sea route connects seamlessly to Greece, Italy, France, and Spain, with efficient rail and road links to Europe.
IMEC has gained support from participating states and financial institutions like the World Bank, driven by promising returns.
Its distinctive features include green initiatives like laying electricity cables and a clean hydrogen pipeline, aligning with global efforts to reduce greenhouse gas emissions and promote sustainability.
What is the significance of IMEC?
IMEC is a new trade route that will connect Asia with Europe through the Gulf. It will be shorter and more efficient than the current maritime route, which relies heavily on the congested Suez Canal.
It links major ports in western India with major shipping ports in the Gulf, and then uses the Saudi rail network to transport cargo to the port of Haifa in Israel.
From Haifa, cargo can be shipped to European ports on bulk container trains and post Panamax ships. Thus, IMEC will reduce transportation costs and delivery times for both Asian and European businesses.
Further, IMEC can unite India, West Asia, and Europe for remarkable growth. India can lead regionally and assist neighboring economies by leveraging its expertise in rail and infrastructure for IMEC’s development.
Must Read: India Middle East Europe Corridor-Explained
What are the challenges with IMEC?
IMEC requires infrastructure to facilitate cargo transport between ships and trains. This involves constructing missing rail links, terminals, and inland container depots at major Gulf and Mediterranean ports.
For instance, the missing rail link between Saudi Arabia and Jordan is a crucial challenge for the success of IMEC.
The IMEC project will also require Jordan and Israel to build a missing rail link between them and for the port of Haifa to expand its capacity. This is critical to ensure seamless transport from Gulf ports to Haifa and onwards to Europe.
IMEC’s success also relies on a consistent standard gauge railway network. Hence, to enhance it, the focus should be on developing feeder rail routes connecting hinterlands that can integrate with the main corridor.
What can be the course of action?
IMEC has potential but requires substantial effort to become successful.
In this regard, a working group should be created to prepare a detailed plan to tackle challenges, and participating nations must sign a comprehensive agreement with a clear timeframe.
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