In a significant move that underscores the deepening ties between India and the Gulf region, India and the United Arab Emirates (UAE) have sealed a pact for the swift operationalization of the India-Middle East-Europe Economic Corridor (IMEC). This landmark agreement, inked during Prime Minister Narendra Modi‘s visit to the UAE, aims to enhance regional connectivity and provide a formidable counter to China’s Belt and Road Initiative (BRI).
The discussions between Prime Minister Modi and UAE President Sheikh Mohammed bin Zayed Al Nahyan have set the stage for this ambitious project, which was first announced at the G20 Summit in New Delhi. The corridor, spanning from India through the UAE, Saudi Arabia, Jordan, Israel, and extending to Europe, is poised to redefine the strategic and economic landscape of the region.
Zoom in
The discussions between Prime Minister Modi and UAE President Sheikh Mohammed bin Zayed Al Nahyan have set the stage for this ambitious project, which was first announced at the G20 Summit in New Delhi. The corridor, spanning from India through the UAE, Saudi Arabia, Jordan, Israel, and extending to Europe, is poised to redefine the strategic and economic landscape of the region.
Zoom in
- The IMEC corridor aims to link Europe with India through parts of the Middle East by sea and rail.
- The IMEC corridor, announced last year, is envisioned to stretch from India across the Arabian Sea to the UAE, through Saudi Arabia, Jordan, and Israel, eventually connecting to Europe. However, the latest announcement did not specify the involvement of countries beyond India and the UAE. The corridor’s progress signals a deepening of ties between India and the UAE, a relationship built on over a century of trade links and reinforced by mutual strategic interests.
- Foreign secretary Vinay Kwatra highlighted the urgency of operationalizing the IMEC to enhance regional connectivity. “The primary goal is to operationalize the IMEC swiftly to fulfill the central aim of bolstering stronger, deeper, and broader regional links among the involved nations,” he remarked.
- On the specifics of the IMEC agreement, Kwatra pointed to logistics cooperation as a key area of focus, underscoring its importance in achieving the corridor’s goals related to supply chain services. “Our commitment to supply chain services extends beyond just a few areas, encompassing a wide range of cargo, including general cargo, bulk containers, and liquid bulk,” he said.
Why it matters
- Amidst the ongoing conflict in Gaza and regional instability, the move underscores a concerted effort by India and the UAE to push forward with strategic economic initiatives.
- The corridor could potentially counter China’s Belt and Road Initiative, offering an alternative route for global trade and enhancing regional connectivity.
- Given the corridor’s emphasis on connecting energy-rich regions of the Middle East with energy-consuming nations in Europe and Asia, it could play a significant role in ensuring India’s energy security.
- The corridor could also serve as a platform for addressing common challenges like maritime security and piracy
- This development comes as the war in Gaza has affected US-backed plans for further integration between Israel and its Arab neighbors, with Saudi Arabia pausing normalization plans.
The big picture
- The establishment of the IMEC is part of broader efforts to enhance regional connectivity and economic cooperation, despite the challenges posed by regional conflicts and security concerns.
- At the same time,
PM Modi ‘s visit to the UAE, his seventh since taking office, highlights the importance of the UAE as one of India’s top trading partners and reflects the growing partnership between the two nations in various domains, including trade, investment, and cultural exchanges. - Moreover, the visit saw the signing of 10 pacts between India and the UAE, encompassing key sectors such as energy, infrastructure, and digital projects, further solidifying their bilateral relations. The trade between the two countries already nears USD 85 billion, with the UAE standing as the fourth largest investor in India.
What next
- As the IMEC project moves forward, its success will depend on navigating the complex geopolitical landscape of the Middle East and ensuring the security of trade routes.
- The initiative not only aims to bolster economic ties but also to assert India’s and the UAE’s roles as pivotal players in global trade dynamics.
- Further developments in the project are likely to attract international attention, particularly from countries and entities interested in diversifying trade routes and reducing dependence on existing corridors dominated by major powers like China.
(With inputs from agencies)
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