L2A
Achieving Aspirations
INDIA MIDDLE EAST EUROPE ECONOMIC CORRIDOR
Why in news?
Recently, the Prime Minister of India, President of the United States, Chancellor of Germany, Crown Prince of Saudi Arabia, President of UAE, Prime Minister of Italy, and the President of the EU unanimously agreed to establish the India-Middle East-Europe Economic Corridor (IMEC).
About IMEC
- The historic agreement on the “India-Middle East-Europe Corridor (IMEC)” during the G-20 Summit in Delhi marks a momentous occasion for India.
- The corridor not only provides an alternative transport route to the thriving markets of the Middle-East and Europe but also extends India’s reach to North Africa and North America
- The IMEC comprises two distinct routes; the East Corridor connecting India to the Middle-East and the Northern Corridor connecting the Middle-East to Europe.
- This extensive network integrates a railway corridor, a hydrogen pipeline, and high-density optical fibre cables.
- Once completed, it will establish a dependable and cost-effective ship-to-rail transit system for cross-border movement of goods and services.
- It complements existing maritime and rail-road transport routes, such as the Suez Canal, North South Transport Corridor, and China’s Silk Routes, facilitating seamless transit between India, the UAE, Saudi Arabia, Jordan, Israel, and Europe.
- Indian Railways with its proven expertise in building the railway networks in deserts, is likely to get a major share of contracts in this proposed corridor.
- This corridor is expected to reduce the time and cost of transporting Indian goods to Europe by 40 per cent and 30 per cent, respectively, and vice versa.
- Member-states are optimistic that it will enhance logistical efficiencies, lower business costs, promote economic unity, create jobs, and reduce greenhouse gas emissions, fostering transformative integration across Asia, Europe, and the Middle East.
- Additionally, the IMEC envisions the development of three industrial corridors namely food, green energy and knowledge economy.
- Dedicated cable networks will establish a solar energy grid, information and digital connectivity, unleashing a window of opportunities to Indians in the IT sector and Knowledge economy of the Middle-East and Europe.
- It underscores the collaboration between India and Israel in the knowledge and innovation sector, creating a knowledge corridor for Industry 4.0.
- IMEC proposed a dedicated hydrogen pipeline along with tapping the other sources of renewable energy such as solar and wind to reinforce the region’s energy security.
