• UGI USER
  • Feb 27, 2024
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CAN THE IMEC ADDRESS THE RED SEA CRISIS?

Why in the news?

  • The Red Sea crisis disrupts global supply chains; IMEC proposed an alternative.
  • Indian shipments drop significantly due to threats,25% of Indian cargo ships withheld.

About Red Sea Crisis and Impact on India:

Red Sea Crisis:

  • Entering fourth month, disrupting supply chains.
  • Bab el-Mandab Strait crucial for global trade.

Impact on India:

  • India heavily depends on the Red Sea route.
  • Rising shipping costs impact commodity prices.
  • IMEC proposed an alternative economic corridor.
  • Lack of investments hindering potential.
  • Challenges: Israel-Palestine conflict, Strait of Hormuz vulnerability.
About Red Sea

●   Semi-enclosed tropical basin between northeastern Africa and Arabian peninsula.

●   Connects Mediterranean Sea and Indian Ocean.

●   Divides into the Gulf of Aqaba and Gulf of Suez in the north.

●   Bab-el-Mandeb Strait connects it to the Gulf of Aden and Indian Ocean in the south.

●   Surrounded by arid regions with no major freshwater inflow.

About IMEC :

●   IMEC project signed at G20 Summit.

●   Forms part of PGII.

●   Includes East and Northern Corridors.

●   Involves rail, road, and sea routes.

●   Aims to enhance transportation, promote economic unity, and lower GHG emissions.