Redefining Global Connectivity: The India-Middle East-Europe Economic Corridor
Oct. 28, 2024 • Arshdeep Gill
Introduction:
In 2023, a major project was flagged off as a consequence of G20 New Delhi Summit, marking the beginning of what would become a central part of India’s foreign policy - the India - Middle East - Europe Economic Corridor (IMEC). This ambitious rail and shipping network aimed to connect India with Europe through West Asia, offering the potential to improve connectivity, open vast business opportunities, raise infrastructure standards, and reshape global trade routes. However, its significance extended beyond economics, positioning IMEC as an alternative to China’s Belt and Road Initiative (BRI). Now, one year after its announcement, this article explores the facts surrounding the corridor and highlights its current progress and positioning.
About the Corridor:
During the G20 Summit of 2023 in New Delhi, a Memorandum of Understanding (MOU) was unveiled for the India – Middle East – Europe Economic Corridor (IMEC) by the governments of India, USA, UAE, Saudi Arabia, France, Germany, Italy; and the European Union. The IMEC is a planned economic corridor that aims to strengthen economic development by promoting connectivity and economic integration between Asia, the Arabian Gulf, and Europe. The major components of the project include the networks of road, rail, and maritime. It will further include data cables, hydrogen pipelines and electricity cables. Moreover, IMEC has two corridors, i.e., the Eastern Corridor (connecting India to Arabian Gulf), and the Norther Corridor (connecting Arabian Gulf to Europe). It was signed with a vision to transform the integration of Asia, Europe, and the Middle East by facilitating trade and connectivity.
Significance of the Corridor:
The IMEC is being seen as an alternative to China’s Belt and Road Initiative (BRI), which seeks to establish trade and infrastructure networks connecting Asia, Europe, and Africa. Many view BRI as a tool for China to exert influence over developing nations, often resulting in debt traps. Moreover, the project has also broken the myth that India and the United States might work together in the Indo-Pacific but not in Middle East.
Most Importantly, the project breaks the Pakistan's veto over India’s overland connectivity to the west. Since 1990s, India has sought various trans-regional connectivity projects with Pakistan. But Pakistan was adamant in its refusal to let India gain access to land-locked Afghanistan and Central Asia. In addition, the corridor also marks the economic unity and mobilisation of Europe into infrastructure development. According to United States, this mega connectivity project could help ‘bring down’ the political temperature in the Arabian Peninsula and act as an infrastructure for peace in the Middle East by promoting intra-regional connectivity.
Current Progress:
Indian ports such as Mundra, Kandla, and Jawaharlal Nehru Port Trust are set to play a key role in the ambitious India-Middle East-Europe Economic Corridor (IMEC). In March 2024, the Union Cabinet approved an inter-governmental framework agreement (IGFA) between India and the UAE to boost cooperation in the ports, maritime, and logistics sectors.
The agreement aims to strengthen ties between the two countries by simplifying administrative procedures, reducing logistics costs, and improving the ease of doing business. The IMEC project envisions a sea route linking India to the Jebel Ali port in the UAE, from where goods will be transported via rail to Haifa port in Israel, passing through Saudi Arabia and Jordan, and then shipped onward to Europe.
However, ongoing conflict in the Middle East has cast doubt on the corridor's progress, especially as hopes for Saudi-Israel normalization have dwindled. Additionally, the shipping route from Haifa to Greece crosses waters disputed by Turkey, a country not included in IMEC. Turkish President Recep Tayyip Erdoğan has expressed displeasure, stating, "There’s no corridor without Turkey." This highlights the geopolitical complexities that currently cloud IMEC's future. Despite these challenges, IMEC has the potential to reshape global trade routes, enhancing connectivity between Asia, the Middle East, and Europe. Its long-term success depends on resolving geopolitical tensions and securing financial commitments to support the infrastructure needed for the corridor.
Other Barriers:
Besides, the geopolitical complexities, no binding financial commitments have been made, which complicates the project's implementation. The cost of developing the corridor is estimated to be between $3 billion and $20 billion, depending on the scope of the project. Securing adequate funding, especially from private investors, remains a major challenge.
Moreover, IMEC involves several countries, including India, Saudi Arabia, UAE, Jordan, Israel, and various European nations. Coordinating between these stakeholders, each with its own regulatory systems and trade policies, is logistically complex. Harmonizing transport standards and customs procedures will require significant diplomatic effort and technical agreements.
Lastly, large portions of the IMEC route pass through deserts, especially in Saudi Arabia and Jordan. Laying tracks in such areas poses logistical challenges due to extreme heat, shifting sand dunes, and the need for specialized construction methods to stabilize the rail tracks. This can increase costs and prolong construction timelines. Hence, a lot would depend on the speed at which the new corridor is implemented and its ability to avoid the problems of sustainability – geopolitical, financial as well as ecological.
Conclusion:
IMEC is an ambitious project with the potential to transform both economic and geopolitical landscapes by connecting major economies like India, the U.S., Gulf states, and Europe. For the Gulf nations, it offers a chance to diversify their trade routes and infrastructure, potentially boosting their regional influence. Unlike China’s Belt and Road Initiative (BRI), IMEC can be viewed not as a competition but as a collaboration that benefits multiple stakeholders. However, the project's success hinges on several factors, such as managing logistics, coordinating efforts across continents, and addressing geopolitical tensions. It will also be critical to clarify the financial contributions of each member country. The future will determine if IMEC can achieve its goals and reshape global trade and connectivity.
The author affirms that this article is an entirely original work, never before submitted for publication at any journal, blog or other publication avenue. Any unintentional resemblance to previously published material is purely coincidental. This article is intended solely for academic and scholarly discussion. The author takes personal responsibility for any potential infringement of intellectual property rights belonging to any individuals, organizations, governments, or institutions.
References:
Photo Credit: Frontline – The Hindu
Business Today TV (2024), India readies its ports to power the ambitious IMEC corridor
Press Trust of India (2024), Cabinet approves inter-governmental agreement between India-UAE on IMEC
Kaush Arha, Giulio Terzi, Francesco Talò, Mukesh Aghi, Carlos Roa (2024), IMEC at One Year: India-Middle East Leads, Europe Needs to Recommit, The National Interest
Anchal Vohra (2023), The uncertain future of the India-Middle East-Europe Corridor, Politico
https://www.politico.eu/article/the-uncertain-future-of-the-india-middle-east-europe-corridor/
Abhishek Yadav (2023), India-Middle East-Europe Economic Corridor (IMEC): A Transformative Initiative Connecting Continents, Asia in Global Affairs
The author is a LL.B. (Hons.) student at the Amity University Punjab and, a former legal intern at the Punjab State Human Rights Commission.