India-Middle East EU Economic Corridor (IMEC) Project

General Studies Paper-2

Context

• With uncertainty gripping the ambitious India-Middle East EU Economic Corridor (IMEC) project due to the deepening of the West Asia crisis, India is examining the possibility of beginning work on the eastern leg of the corridor.
• Background: The IMEC, a proposed 4,800 km long route was announced in 2023 on the sidelines of the G20 Summit.
  • This followed a meeting between the leaders of India, the US, the United Arab Emirates, Saudi Arabia, Italy, France, Germany, and the European Commission.
• Members: India, European Union, France, Germany, Italy, Saudi Arabia, UAE and US announced the India-Middle East-Europe Economic Corridor (IMEC).
• Aim: Integration of Asia, Europe and the Middle East.
• The IMEC will comprise of two separate corridors:
  • The east corridor connecting India to the West Asia/Middle East and
  • The northern corridor connecting West Asia/Middle East to Europe.

Ports Which are Part of IMEC

• India: Ports in Mundra (Gujarat), Kandla (Gujarat), and Jawaharlal Nehru Port Trust (Navi Mumbai).
• Europe: Piraeus in Greece, Messina in Southern Italy, and Marseille in France.
• Middle East: Ports include Fujairah, Jebel Ali, and Abu Dhabi in the UAE, as well as Dammam and Ras Al Khair ports in Saudi Arabia.
• Israel: Haifa port.
• Railway Line: The railway line will link Fujairah port in the UAE to Haifa port in Israel, passing through Saudi Arabia (Ghuwaifat and Haradh) and Jordan.

Significance

• Economic Development: By linking Asia, West Asia, the Middle East and Europe through enhanced connectivity and economic integration, the corridor aims to give a boost to economic development in the regions.
• Connectivity: The corridor will include a rail line, which, upon completion, will provide a reliable and cost-effective cross-border ship-to-rail transit network.
  • The rail line will supplement the existing multi-modal transport routes enhancing trans-shipment of goods and services from South East Asia through India to West Asia/Middle East and Europe.
• Eco-friendly Infrastructure: It places emphasis on developing environmentally friendly infrastructure.
• Transformative Integration: It intends to increase efficiency, reduce costs, secure regional supply chains, increase trade accessibility, enhance economic cooperation, generate jobs and lower greenhouse gas emission, resulting in a transformative integration of Asia, Europe and the Middle East (West Asia).

Concerns

• Gaza War: Long-term trend towards greater trade and strategic links between Israel and Arab nations that was championed by the Abraham Accords will suffer a blow due to the Gaza war.
  • Connecting Al Haditha in Saudi to Haifa in Israel is at the core of IMEC but it is going to be challenging now.
• The security challenges in the region have made other partners reluctant to invest in the project.
  • The instability in the Middle East has given a fatal blow to the project which aimed to radically quicken trade, reduce port costs and aid India’s National Logistics Policy.
  • The delay in the project could negatively impact the aspirations of India to deepen ties with Arabian Peninsula and Europe.

Way Forward

• The geopolitical concerns need to be managed by striking a delicate balance in accommodating the geopolitical interests of the participating nations and addressing potential political sensitivities.
• There is also a need to maintain the required security apparatus as the project passes through certain unstable regions of the world.