On September 9, a historic agreement was announced involving India, the United States, Saudi Arabia, and the European Union. The announcement outlined their joint plan to establish an extensive shipping and railway connectivity corridor connecting India, the Middle East, and Europe. This ambitious initiative, known as the India-Middle East-Europe Mega Economic Corridor, is seen as a strategic response to China’s Belt and Road Initiatives (BRI).
Prime Minister Narendra Modi shared this ambitious project’s details on the sidelines of the G20 Summit. He was accompanied by US President Biden, Saudi Arabia’s Prime Minister Mohammed bin Salman, and European Union leaders.
The Project Explained
The India-Middle East-Europe Mega Economic Corridor is a combination of railways and shipping routes. It’s a result of the Partnership for Global Infrastructure Investment (PGII), an initiative led by the G7 nations. The aim of PGII is to finance infrastructure development in emerging economies. This initiative is seen as the G7’s response to China’s Belt and Road Initiative.
This project’s main goal is to boost trade amongst the involved nations, with a focus on energy products. It stands as a grand challenge to China’s substantial infrastructure programme, which aims to intertwine more nations with its economy.
The corridor will feature a rail connection, an electricity cable, a hydrogen pipeline, and a high-speed data cable.
- The India-Middle East-Europe Economic Corridor (IMEC) is a groundbreaking initiative driven by India and the US. It marks a historic milestone in cooperation on connectivity and infrastructure, bringing together key stakeholders including India, UAE, Saudi Arabia, EU, France, Italy, Germany, and the US. This first-of-its-kind initiative sets the stage for enhanced collaboration and economic integration among these nations.
- IMEC will consist of two distinct corridors: the east corridor linking India to the Arabian Gulf, and the northern corridor connecting the Arabian Gulf to Europe. These corridors will facilitate the seamless transit of goods and services between India, the UAE, Saudi Arabia, Jordan, Israel, and Europe.
- Upon its completion, the project will feature a railway that aims to establish a dependable and economical cross-border ship-to-rail transit network, complementing the existing maritime and road transport routes.
- The signatories aim to facilitate the installation of electrical and digital connectivity cables, as well as pipelines for exporting clean hydrogen, along the railway route.
India’s Counterstrategy To China’s Belt And Road With IMEC
India has responded to China’s Belt and Road Initiative (BRI) by establishing the India-Middle East-Europe (IMEC) mega economic corridor. China’s BRI, which planned to connect countries across Asia, Africa, Europe, and Latin America through railways, energy pipelines, and highways, faced a setback when Italy, a European country, decided to withdraw. The BRI has caused tensions between India and China due to its planned crossing through Pakistan-occupied Kashmir.
IMEC is India’s strategic move to counterbalance the impact of China’s BRI. This initiative seeks to connect India directly with its major trading partners. The IMEC project is also expected to generate many employment opportunities in the participating countries. In contrast to BRI’s criticism for creating a “debt trap” for low-income countries, India’s IMEC offers an alternative economic collaboration model.
India-Middle East-Europe Mega Economic Corridor vs China’s Belt and Road Initiative
The India-Middle East-Europe Mega Economic Corridor (IMEEC) offers a new model of connectivity infrastructure that stands as a contrast to China’s Belt and Road Initiative (BRI). Where the BRI often leaves countries struggling with debt and on the brink of economic collapse, like Sri Lanka and Montenegro, the IMEEC provides an alternative solution. Notably, China’s strategy often involved constructing infrastructures using their own companies, labour, and funding, which primarily catered to Beijing’s interests.
On the other hand, the IMEEC encourages countries to build their own infrastructure. This is done in accordance with mutually agreed technical, design, financing, legal, and regulatory standards.
Unlike China’s BRI, which has been criticised for its imperialist approach, the IMEEC is built on the principle of equal partnership.
Furthermore, the role of the U.S in the global landscape is also shifting. It appears that the U.S is moving away from the role of the sole superpower and towards forming partnerships with nations best equipped to deliver in specific regions. This comparative approach underscores the key differences between the IMEEC and BRI.