Year-ender 2023: How the India-Middle East-Europe Economic Corridor will be a game-changing affair

Hyderabad: The year 2023 will be always remembered in the annals of Indian history, as the country hosted G20 nations group meetings as well as a leaders summit in September. Various ministerial as well as secretary-level group discussions were held in different parts of the country, from Ladakh and Jammu and Kashmir in the North to Kanyakumari in the South and from Shillong and Guwahati in the North East to the Goa and Rann of Kutch in the West.

Many issues being faced by the world were discussed for this world to become a better world to live. Foremost among them are:

(i) Global Biofuel Alliance (GBA) – This alliance has nine countries as its members and this is forged to promote the development and adoption of sustainable biofuels.

(ii) India Middle East Europe Economic Corridor (IMEC) - The IMEC will shape India's future in a big way. The India Middle East Europe Economic Corridor (IMEC) is a proposed economic corridor, the idea of which was mooted in September during the G20 Summit in New Delhi. The idea for this corridor was backed by the United States President Joe Biden. The IMEC also involves India, the United Arab Emirates, Saudi Arabia, France, Germany, Italy, and European Union and of course United States. The idea for this corridor is to directly counter to the China-backed Belt & Road Initiative (BRI).

IMEC Project involves two separate corridors – the East Corridor, which connects India to the countries of the Middle East and the Northern Corridor, which connects the Middle East to Europe through Israel.

The MOU document states that the "IMEC is expected to stimulate economic development through enhanced connectivity and economic integration between Asia, The Arabian Peninsula and Europe." This projected corridor is launched to enhance transportation and communication links between Europe and Asia involving road, rail and shipping modes of transportation. This route will also enable electricity and digital connectivity, as well as pipes for a clean source of energy.

Global Impact of IMEC:

This corridor is a direct alternative to the debt trap of Chinese BRI, although IMEC is a planned corridor, it has generated lots of buzz and excitement in anticipation. IMEC is important from a geo-political angle and it will also bolster reliable and secure supply chains and better trade accessibility. Another feature of this corridor is linking this route to the African continent, which will once again lead to the inclusion of the poorest parts, that exist on this planet. Countries along this corridor will also benefit through improved connections between the leading markets of the world, which will provide numerous new business opportunities. But before the inception of IMEC, the Israel-Palestine conflict has put this proposed corridor in jeopardy, as Haifa port in Israel is an important link of this corridor connecting Europe.

Moreover, Turkey's President Recep Erdogan has also criticised this economic corridor for not involving his country in this corridor. He has also announced his plans for an alternative route to IMEC involving Iraq. Notwithstanding these impediments, the IMEC has a very bright future and will be a common link between Asia and Europe. Recently in a boost to IMEC, Italy has pulled out of the Chinese-backed BRI and will solely rely on IMEC.

As for the Indian perspective is concerned, if completed this corridor will give India a big infrastructural boost which includes connectivity, economic development, job creation and prosperity in general to all the partners and specifically to India in particular. Finally, this IMEC is a win-win situation for all the parties concerned and hopefully, all the participating nations bring prosperity to the society.