India (Commonwealth) _In line with the G20 meeting in New Delhi, a multinational rail and maritime project linking India with the Middle East and Europe was launched, posing a threat to China’s economic ambitions in the region.
The corridor, which would connect India, Saudi Arabia, the United Arab Emirates, Jordan, Israel, and the European Union, would aid in trade, energy delivery, and digital communication. It intends to connect Middle Eastern countries by train and ports to India, facilitating the flow of energy and trade from the Gulf to Europe.
The European Union, India, Saudi Arabia, the United Arab Emirates, the United States, and other G20 partners signed a memorandum of understanding on the India-Middle East-Europe Economic Corridor, or IMEC.
According to the Joe Biden, IMEC will consist of two distinct corridors: an east corridor connecting India to the Arabian Gulf and a northern corridor connecting the Arabian Gulf to Europe. Participants intend to lay cable for power and communication lines, as well as pipeline for hydrogen created from renewable energy for use in power generation, along the train route.
It intends to connect Middle Eastern countries by train and India by port, facilitating the flow of energy and trade from the Gulf to Europe by reducing shipping delays, costs, and fuel consumption, according to US authorities.
According to officials in New Delhi, the agreement is a “game changer.”
It is said to be an economic corridor connecting India, the Middle East, and Europe. According to Chinese official Yu, it will comprise of railway lines and shipping lines that will traverse through the UAE, Saudi Arabia, Jordan, and Israel.
At the moment, details are scarce. However, US and European officials present at the announcement praised it as a game changer and historic event. They claim it will save trading time between India and Europe by 40%, she adds. Yu stated that Beijing was not present for the deal’s announcement.
China was conspicuously absent from this announcement. This appears to be a clear attempt to compete with China’s vast Belt and Road infrastructure effort, which was introduced in 2013 and is aimed to connect Asia, Africa, and Europe. So it appears that this is a counterbalance strategy, Yu noted.
The network, according to Jake Sullivan, Biden’s national security adviser, reflects Biden’s vision for “far-reaching investments” that result from “effective American leadership” and a willingness to engage other nations as partners.
He stated that improved infrastructure will stimulate economic growth, assist bring Middle Eastern countries together, and position the region as a hub for economic activity rather than a “source of challenge, conflict, or crisis” as it has been in recent history.
The agreement comes at a vital juncture in US President Joe Biden’s efforts to oppose China’s Belt and Road Initiative on global infrastructure by positioning the US as an alternative partner and investor for developing countries at the G20 summit.
Biden called it a “real big deal” that will connect ports on two continents and result in a “more stable, prosperous, and integrated Middle East.”
At the pact’s announcement event, he stated that it will open up “endless opportunities” for renewable energy, clean power, and laying cable to connect communities.
According to India’s Prime Minister Narendra Modi, “today, as we embark on such a large connectivity initiative, we are sowing the seeds for future generations to dream bigger.”
The agreement will assist low and middle-income countries in the area and allow the Middle East to play a crucial role in global business, according to Jon Finer, the United States’ deputy national security adviser, speaking to reporters at the bloc’s annual summit in New Delhi.
