India-Middle East-Europe Corridor Enhances Global Trade Connectivity

Why in the news?

The India-Middle East-Europe Economic Corridor (IMEC) was launched during the 2023 G20 Summit to improve trade ties, reduce costs, promote sustainable development, and integrate infrastructure across India, the Middle East, and Europe.

India-Middle East-Europe Corridor Enhances Global Trade Connectivity

India-Middle East-Europe Economic Corridor (IMEC):

  • IMEC: Connectivity initiative strengthening economic ties between India, Arabian Peninsula, Mediterranean, and Europe.
  • Announced at 2023 G20 Summit with seven nations: India, US, Saudi Arabia, UAE, France, Germany, Italy, and European Union.

Key Components:

  • Two main corridors:
    • Eastern corridor: Links India to Arabian Gulf.
    • Northern corridor: Connects Gulf to Europe.
  • Infrastructure:
    • Shipping route: From India’s ports (Mumbai, Mundra) to UAE.
    • Rail network: Through Saudi Arabia, Jordan, and Israel to Haifa port.
    • Maritime link: From Haifa to Greece’s Piraeus port.
    • Integration of electric grids, hydrogen pipelines, and digital connectivity (optical fiber).

Objectives and Impact:

  • Reduce trade costs, enhance supply chain efficiency.
  • Create jobs, promote regional cooperation.
  • Foster sustainable development with lower greenhouse gas emissions.
  • Backed by US-led Partnership for Global Infrastructure and Investment (PGII) for inclusive development.

IMEC aims to enhance economic connections, contributing to a greener, integrated global economy.

Sources Referred:

PIB, The Hindu, Indian Express, Hindustan Times