India’s pursuit of economic connectivity through the Middle East region has garnered significant attention in recent years. This article offers a strategic analysis of India’s efforts to establish an economic corridor spanning the Middle East, examining the geopolitical, economic, and diplomatic dimensions involved. By leveraging its historical ties and strategic partnerships with countries in the region, India aims to create a seamless network of trade, investment, and infrastructure development. Announced at the 2023 G20 New Delhi Summit, the India-Middle East-Europe Economic Corridor (IMEC) opened new prospects for the area. Less than a month later, war erupted on the Middle East’s Mediterranean shores, destroying the status quo exactly where a maritime connection to Europe was planned. Whereas the peace table is quasi deserted at the time of writing, IMEC provides a rare multilateral basis for dialogue. Its parties know that their shared interests – resilient and efficient supply chains – will only be within reach when political and armed violence is overcome.
GEDAM KAMALAKAR AND KANDI KAMALA
INTRODUCTION
In an ambitious move that promises to reshape regional dynamics and bolster economic cooperation, India has unveiled plans for a ground-breaking Economic Corridor traversing the Middle East. This strategic initiative aims to foster deeper ties with countries in the region while unlocking vast opportunities for trade, investment, and mutual growth. As geopolitical shifts continue to redefine global alliances, India’s proactive approach underscores its commitment to leveraging economic connectivity as a cornerstone of diplomacy. This article assesses the significance of India’s Economic Corridor, examining its potential impact on regional geopolitics, trade dynamics, and the broader global economy. One significant initiative is the International North-South Transport Corridor (INSTC), which aims to connect India with Central Asia, Russia, and Europe via Iran. While Iran is not typically considered part of West Asia, it is a key transit country bridging South and West Asia. The INSTC could significantly reduce transportation costs and time for goods travelling between India and Europe. An important project that is part of it is the Chabahar Port in Iran, where India has been investing to develop it as a gateway for trade with Afghanistan and Central Asia. This project is strategically significant for India as it provides an alternative route for trade that bypasses Pakistan. Additionally, New Delhi has strengthened economic ties with countries in the Gulf Cooperation Council (GCC), such as Saudi Arabia, the United Arab Emirates (UAE) and Qatar. These relationships include trade agreements, investment partnerships, and collaboration in sectors like energy, infrastructure, and technology. While there may not be a single initiative called “India’s Economic Corridor through the Middle East”, India’s engagement with West Asia in various economic projects and partnerships underscores its efforts to enhance connectivity and economic cooperation in the region.
A Memorandum of Understanding (MoU) was signed by India, the European Union (EU), Germany, Italy, France, the United States (US), Saudi Arabia and the United Arab Emirates (UAE) at the G20 Summit held under the presidency of India, according to which they commit to work collectively to establish the India-Middle East-Europe Economic Corridor (IMEC), including railway lines, sea lines and road networks. IMEC will consist of two corridors – the East Corridor connecting India to the Arabian Gulf and the Northern Corridor connecting the Arabian Gulf to Europe. Upon completion, the corridor will have a cost-effective and reliable cross-border railway network, complemented by available road transport and sea routes, facilitating movement of goods and services between India, UAE, Saudi Arabia, Jordan, Israel, Greece and Italy, France and Germany. Besides, along the corridor, the partner countries will also lay a network of electricity grids, optical fiber cables for digital connectivity and pipelines for transporting hydrogen gas. A joint statement on IMEC said, “The MoU is the result of initial consultations. It sets out the political commitments of the participants and does not create rights or obligations under international law. Participating countries intend to meet within the next sixty days to develop and commit to an action plan with relevant timetables”. The purpose of the paper is to examine the aspects and prospects of the IMEC project.
