 "How the India-Middle East-Europe Economic Corridor could reshape world politics")
Editor’s Note: The tenth edition of Raisina Dialogue, India’s flagship conference on geopolitics and geo-economics, is now underway in Delhi. Firstpost Ideas Pod at Raisina Dialogue organised by Observers Research Foundation (ORF) in partnership with the Ministry of External Affairs (MEA), will hold a session on ‘Connectivity Blueprint from the Indo-Pacific to the Mediterranean’ on Day 3. In this article, we take a look at the significance of the India-Middle East-Europe Economic Corridor (IMEC).
In September 2023, at the G20 Summit in New Delhi, world leaders unveiled plans for an India-Middle East-Europe Economic Corridor (IMEC). Saudi Arabia, the European Union, India, the United Arab Emirates (UAE), France, Germany, Italy, and the United States all signed a Memorandum of Understanding, committing to work together to advance the project.
The project is envisioned to serve as a strategic counterweight to China’s sprawling Belt and Road Initiative.
In fact, US President Donald Trump reiterated his commitment to the IMEC during Narendra Modi’s visit to Washington in February, calling it the “‘greatest trade routes in all of history.”
But what purpose will the IMEC actually serve? How will it prove to be a game-changer as it has been touted? Let’s find out.
What is the IMEC corridor?
The IMEC as proposed by India, Saudi Arabia, the European Union, the United Arab Emirates (UAE), France, Germany, Italy, and the United States is a network of railroads, ship-to-rail (road and sea) and road transport routes extending across two corridors, that is, the east corridor – connecting India to the Gulf, and the northern corridor – connecting the Gulf to Europe.
As per the proposal, the IMEC would enable the transportation of goods and services from India to the UAE, Saudi Arabia, Jordan, Israel and Europe, and back, with the leaders involved saying that once completed it would improve efficiency, reduce costs, enhance economic unity, generate jobs, and lower greenhouse gas emissions.
As foreign affairs specialist Robinder Sachdev told South China Morning Post, once built, the IMEC would cut transport times by up to 40 per cent, offering India more “cost-effective access” to European markets.
When announced at the G20 Summit in New Delhi, PM Modi called the IMEC “a beacon of cooperation, innovation, and shared progress”. Meanwhile, then US President Joe Biden termed it as the “real big deal”.
European Union Commissioner Ursula von der Leyen said the corridor was “more than ‘just’ a railway or a cable, it is a green and digital bridge across continents and civilisations.” She further called it the “most direct connection” between India, the Gulf and Europe: with a rail link that would make trade between India and Europe 40 per cent faster.
What’s the politics behind the IMEC?
The corridor isn’t just about economic integration or as some experts note about geoeconomics. It also has wider geopolitical implications.
Many note that the IMEC is a way to counter China’s Belt and Road Initiative as Beijing’s influence in the Gulf and West Asia continues to grow. Reiterating this view, Poornima Balasubramanian, a research scholar at the Department of Geopolitics and International Relations at India’s Manipal Academy of Higher Education, told The New Arab, “The IMEC project can be seen as an alternative to China’s BRI, this one being led by India and the US.”
Michael Kugelman, South Asia Institute director at The Wilson Center, also said the plan could be an important reply to the Belt and Road Initiative. “If finalised, it would be a game changer that strengthens connectivity between India and West Asia and would aim to counter BRI,” Kugelman wrote on X.
Alberto Rizzi, a policy fellow at the European Council on Foreign Relations, also noted that the IMEC would also allow “India to bypass connectivity obstacles and respond to Chinese competition for the leadership of the Global South”.
Others also note that the IMEC may also hint at further normalisation of ties between Israel and the countries in the Gulf.
What are the challenges to the IMEC?
However, despite its many advantages of the IMEC, there are challenges that could hamper the corridor from becoming a reality.
Firstly, geopolitical tensions — namely the Israel-Gaza war — could slow down the progress of the IMEC. As The Diplomat noted, “For Israel, a permanent settlement in Gaza will remain a policy priority above IMEC for the foreseeable future. That will damage the prospects of Saudi-Israel normalisation, which some believe is a necessary condition for the operationalisation of IMEC.”
There’s also the fact that as Israel continues to bomb Gaza, it would make it difficult for many Arab countries to sit at the same table with the Jewish nation, let alone plane for regional integration projects.
There’s also the issue of financing. Currently, Saudi Arabia has pledged $20 billion for the IMEC. However, this is a tiny fraction of the $600 billion that the G7 wants for the project by 2027. Furthermore, none of the member countries have any financial obligations for the IMEC, leaving much of the funding outlook uncertain.
Many geopolitical experts note that the absence of regional players such as Egypt, Oman and Turkey from the IMEC could be problematic. They argue that these countries’ absence not only limits IMEC’s outreach, but it also risks creating inefficiencies for a project already poised with structural logistical, financial, and geopolitical hurdles.
So, how does India benefit from IMEC?
But despite the many issues, analysts note that the IMEC once operational will be highly beneficial to India in a number of ways. Robinder Sachdev told the South China Morning Post, “The IMEC enhances India’s connectivity, economic opportunities and global standing, while also serving as a multilateral counterbalance to China’s [Belt and Road Initiative], in partnership with the G7 and regional players.”
It will also enable New Delhi to strengthen ties with the Western world, particularly Europe. This is of utmost significance as US President Donald Trump is upending the world order with his unpredictability.
The IMEC also enables India to further its trade and economic relations with the Arab Gulf region. Through the IMEC, India’s economic presence in the region will increase and create opportunities for Indian companies, already active in the area, to invest in building the missing infrastructure.
The IMEC will also connect New Delhi to the offshore gas fields in the Eastern Mediterranean; this is significant as India’s need for energy and gas continues to grow.
With the IMEC, India will also be a big player at a global level. As the Indian Express notes in one report, “With greater integration with its eastern and western neighbourhoods and the larger world, the big power aspiration can be realised. Hence, the underlying geopolitical objective in joining the IMEC is rooted in the Indian aspiration to develop faster and become a global power.”
And beyond the economic benefits, the IMEC will also enable cross-cultural interactions and foster mutual understanding. The initiative can bridge ideological and religious divides, promote tourism, educational opportunities, and a more integrated regional identity.
With inputs from agencies
 "Russian drones over Poland: Trump’s tepid reaction a wake-up call for Nato?")
 "As Russia pushes east, Ukraine faces mounting pressure to defend its heartland")
 "Why Mossad was not on board with Israel’s strike on Hamas in Qatar")
 "Turkey: Erdogan's police arrest opposition mayor Hasan Mutlu, dozens officials in corruption probe")
 "Russian drones over Poland: Trump’s tepid reaction a wake-up call for Nato?")
 "As Russia pushes east, Ukraine faces mounting pressure to defend its heartland")
 "Why Mossad was not on board with Israel’s strike on Hamas in Qatar")
 "Turkey: Erdogan's police arrest opposition mayor Hasan Mutlu, dozens officials in corruption probe")
