From Geo-political to Geo-economics: The significance of IMEC for India

Abstract

On the side-lines of the G20 Leaders’ Summit, Leaders of India, European Union, France, Germany, Italy, Saudi Arabia, UAE and US announced an MOU on 9th September 2023 committing to work together to develop a new India-Middle East-Europe Economic Corridor (IMEC). The IMEC will comprise of two separate corridors, the east corridor connecting India to the Gulf and northern corridor connecting Gulf to Europe. The corridor will provide reliable and cost-effective cross-border ship to rail transit network to supplement existing maritime routes. It intends to increase efficiency, reduce costs, secure regional supply chains, increase trade accessibility, enhance economic cooperation, generate jobs and lower greenhouse gas emission, resulting in a transformative integration of Asia, Europe and the Middle East (West Asia). This project reflects emerging geopolitical trends as it offers an alternative to China’s Belt and Road Initiative (BRI). BRI is often perceived as a tool for exerting influence and creating debt traps in developing nations. The Indian government’s efforts to strengthen political and strategic ties with the UAE and Saudi Arabia can now be further solidified by creating enduring connectivity between India and the Arabian Peninsula. This initiative dispels the notion that India and the United States may collaborate in the Indo-Pacific but not in the Middle East. The project showcases how India and the U.S., along with Israel and the UAE, can partner in developing joint economic projects through forums like the I2U2. The mega connectivity project has the potential to reduce political tensions in the Arabian Peninsula and serve as “Infrastructure for Peace” by promoting intra-regional connectivity, according to the U.S. The corridor signifies Europe’s active involvement in infrastructure development in the region. The European Union’s support for this initiative positions it as a major stakeholder in integrating India with both the Arabian Peninsula and Europe. The success of IMEC could lead to further strategic collaborations.