Explained | Why Saudi Arabia Is Crucial For India In The Proposed IMEC

New Delhi: When Prime Minister Narendra Modi co-chairs the Second Meeting of the India-Saudi Arabia Strategic Partnership Council with Saudi Crown Prince Mohammad bin Salman in Jeddah on Tuesday, one key issue that will come up for discussion will be the Gulf kingdom’s role in the proposed India-Middle East-Europe Economic Corridor (IMEC).

As India deepens its strategic engagement with the West Asia and Europe through the ambitious IMEC, Saudi Arabia has emerged as a pivotal player. Positioned at the crossroads of Asia, Africa, and Europe, the kingdom is not only a geographic lynchpin but also a key economic and political partner. Its participation is central to the corridor’s success, both as a logistics hub and as an energy powerhouse.

During a special media briefing here last week ahead of Modi’s two-day visit to Saudi Arabia that started on Tuesday, Foreign Secretary Vikram Misri explained the importance of Saudi Arabia for India in the IMEC project.

“You would recall that on the sidelines of the G20 Summit (in New Delhi) in September 2023, Saudi Arabia was amongst the other partners that joined India in the conclusion of the India-Middle East-Europe Economic Corridor Agreement and as partners under this agreement, both countries are actively exploring opportunities in regional connectivity, logistics, clean energy, electricity and data cooperation,” Misri said.

“The visit, therefore, provides the opportunity to leadership in both countries to engage on all of these strategic areas to deepen our partnership, and most importantly, of course, to share their perspectives, at a time when the regional and global economic and security situation is in a certain amount of flux.”

The IMEC is a planned economic corridor that aims to bolster economic development by fostering connectivity and economic integration between Asia, the Persian Gulf and Europe. The corridor is a proposed route from India to Europe through the United Arab Emirates (UAE), Saudi Arabia, Israel and Greece.

On September 9, 2023, during the G20 Summit in New Delhi, the memorandum of understanding (MoU) on the IMEC was signed by the governments of India, the US, the UAE, Saudi Arabia, France, Germany, Italy and the European Union. The project was launched to bolster transportation and communication links between Europe and Asia through rail and shipping networks and is seen as a counter to China’s Belt and Road Initiative.

During his briefing, Misri explained that after the signing of the framework understanding on IMEC in September 2023, all the partners had an “urgent regional situation to address” (meaning the Israel-Hamas war in Gaza), which meant that the kind of groundwork that was foreseen between all the partners could not begin immediately.

“That, however, does not mean that individual countries or groups of countries that are part of the original agreement have not discussed or engaged on what the contours of this agreement are going to look like, and what kind of work will be required to effect progress under this agreement,” he said.

The Foreign Secretary further stated that, though the political and security situation in the region makes it seem as if progress on IMEC has frozen, India has been working with select partners on the project.

“And you will see, as I imagine in the fairly near future, engagement on IMEC across all of the partners, original as well as prospective partners, will at some point fructify on the ground,” he said. “But there is work that has already been going on, and I am sure during this meeting (in Jeddah on Tuesday) as well, there will be references to what more can be done to take forward work on IMEC.”

The launch of IMEC marked a strategic pivot in global connectivity, positioning India as a major player in transcontinental trade and infrastructure. Central to this ambitious vision is Saudi Arabia, whose geographic, economic, and political clout makes it a lynchpin in the corridor’s success.

Saudi Arabia sits at the heart of the corridor’s proposed land and maritime routes. The IMEC envisions connecting India’s west coast to the Gulf through sea routes, with onward land transit through Saudi Arabia, Jordan, and Israel, before linking to Europe via Mediterranean ports. In this chain, Saudi Arabia serves as the primary overland gateway, making its logistical cooperation essential. Without Riyadh’s full participation, the integrity and feasibility of the corridor would be compromised.

Under Vision 2030, Saudi Arabia is investing heavily in transforming itself into a global logistics and trade hub. Mega projects like NEOM, the King Salman Park, and the expansion of its port and rail infrastructure align closely with IMEC’s objectives. The corridor offers India an opportunity to plug into these massive investments, both as a participant and as a beneficiary.

Indian companies, particularly in the infrastructure, energy, and technology sectors, are already eyeing Saudi tenders and partnerships. In return, Saudi Arabia gains a reliable partner in India, an economy that complements its diversification strategy beyond oil.

While IMEC is primarily a connectivity project, India and Saudi Arabia’s energy ties are foundational to the broader economic relationship. Saudi Arabia is a major oil supplier for India and is increasingly collaborating with India in areas like green hydrogen, refining, and petrochemicals.

The corridor enhances these linkages by facilitating faster and more efficient movement of goods and energy between the two nations. With growing demand in India and Saudi Arabia’s shift toward becoming a global energy logistics player, IMEC offers a mutually beneficial framework for scaling this partnership.

According to R. Dayakar, former Indian Ambassador to Iraq and Jordan, who also served in the West Asia desk of the Ministry of External Affairs, when the IMEC project comes up during the Strategic Partnership Council meeting, India and Saudi Arabia will discuss the challenges the project faces in the region.

“Turkey, for example, is averse to the project,” Dayakar explained to ETV Bharat. “The corridor completely bypasses Turkey and connects to Greece, its rival. It basically takes away the strategic importance of Turkey.”

He further stressed that India should not lose time and go ahead with the project while describing the war in Gaza as an “unnecessary distraction”.

“Once the IMEC becomes operational, even the ASEAN (Association of Southeast Asian Nations) countries will look to connect with it,” Dayakar said. “It will help in the smooth flow of goods from Southeast Asia to the Gulf and beyond.”

To sum up, Saudi Arabia is not just a participant in the IMEC — it is a pillar. Its geographical position, investment capacity, and strategic importance give it a central role in determining IMEC’s success. For India, engaging with Saudi Arabia through this corridor strengthens its westward connectivity, elevates its global economic role, and helps craft a multipolar regional order.