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Contents
Source: The post is based on the article “The essentials of G20’s corridor initiative” published in Business Standard on 11th October 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 Corridor (IMEEC)
News: The article explains about the India Middle East Europe Corridor (IMEEC).
Read more about IMEEC – India Middle East Europe Corridor-Explained, China’s BRI Now Faces A Credible Indian Challenger and India-Middle East-Europe Corridor: The way to a new world order
What is the IMEE Corridor?
Read Here: India-Middle East-Europe mega economic corridor: What is the project and why is it being proposed?
Currently, IMEE is seen as a logistic corridor. However, if participating countries invest more in it, it may also get transformed into an economic corridor.
IMEEC corridor closely resembles the Spice Route from centuries ago when imperial Rome traded for spices and jewelry from India.
The plan of IMEEC goes beyond the flow of physical goods to energy flows between countries. There are talks about a special power line to Sri Lanka. Also, there is a proposed plan of sharing renewable energy between the countries.
What is the significance of IMEEC for India?
1) A significant reduction in logistics costs at certain points along the route, 2) a chance to lead in the construction and operation of the rail segment, which could enhance India’s position, and 3) it will lead to a shift for India from the previous India-Iran-Russia INSTC with Iran’s Chabahar Port at its center.
What are the challenges?
Bureaucratic Hurdles: One of the challenges that the IMEEC will face is reducing bureaucracy along the route.
For example, a container from Mumbai to Hamburg will have to be loaded and unloaded at six different places, and there will be border checks for illegal activities in all 15 countries involved in the IMEEC.
It is therefore important to have a “single-pass” system in place to make the system more efficient.
Funding: The only part to be constructed is a new rail line across the Arabian Peninsula, estimated to cost ₹78,000 crore. Given the economies involved, this cost is manageable.
What is the way ahead?
India, as the third-largest emerging economy is a key component of the IMEEC.
However, it should also consider involving neighboring subcontinent nations, extending the line from Mumbai to ports like Chittagong, Colombo, and including India’s proposed International Container Transhipment Port in the Andamans.
Recent reports also suggest including western Indian ports like Kandla, JNPT, Mundra, and East African ports, given the African Union’s G20 involvement.
