India-Middle East-Europe mega economic corridor: What is the project and why is it being proposed?

Source: The post is based on the article “India-Middle East-Europe mega economic corridor: What is the project and why is it being proposed?”  published in Indian Express on 11th September 2023

What is the News?

The Prime Minister has announced the launch of the India-Middle East-Europe mega economic corridor.

What is India-Middle East-Europe Mega Economic Corridor?

Aim: To reshape the trade route between the Gulf, Europe and South Asia, connecting them by rail and sea links.

Features: The corridor will consist of two separate corridors — the Eastern Corridor, connecting India to West Asia/Middle East, and the Northern Corridor, connecting West Asia/Middle East to Europe.

– It will involve transit by ship between India and Saudi Arabia, followed by a rail link to the UAE and likely to Jordan from where the shipment will move by sea to Turkey and further by rail.

– Along with the railway track, the members want to lay a cable for energy and digital connectivity, as well as a pipe for clean hydrogen export.

Countries involved: India, US, UAE, Saudi Arabia, European Union (EU), Italy, France and Germany.

Part of: The corridor is part of the Partnership for Global Infrastructure Investment (PGII) — a collaborative effort by G7 nations to fund infrastructure projects in developing nations.PGII is considered to be the bloc’s counter to China’s Belt and Road Initiative.

Significance: The corridor will safeguard regional supply chains, boost trade accessibility, and enable a greater emphasis on environmental, social, and governance consequences. 

– It will be designed to increase efficiencies, save costs, promote economic cohesion, create jobs, and reduce greenhouse gas emissions, leading to a radical integration of Asia, Europe, and the Middle East.

– The project will allow the countries involved to play a key role in the global connective tissue of commerce, of digital communications and of energy.