India-Middle East-Europe Economic Corridor: Critical Challenges And Obstacles Ahead

 

A new trade corridor linking India to Europe via the Middle East can offer opportunities for Europeans to strengthen their geo-economic influence with the Gulf.

This historic memorandum was inked during the 2023 G20 Summit between India, the UAE, Saudi Arabia, Italy, France, Germany, US and the EU to establish a mega India-Middle East-Europe Corridor (IMEC).

The project aims to build a railway and, later, digital and electric cables, as well as a clean hydrogen pipeline, from India to Europe via Jordan and Israel. For the West, it represents an effort to compete with growing Chinese influence in the Middle East.

The IMEC is expected to create a consolidated trade route that will reduce trade costs, promote market access and encourage investment opportunities between the participating countries. The project could also enhance regional connectivity by improving cross border co-operation.

As far as maximising the IMEC’s economic benefits, it is also important to consider the competition expected from China. Beijing’s Belt and Road Initiative (BRI) and other global economic influence and connectivity projects can create economic competition for the corridor.