Context:
The IMEC, launched during the G20 Summit in New Delhi (2023), aims to enhance trade connectivity between India, West Asia, and Europe. However, the evolving geopolitical situation in West Asia has raised questions about its feasibility and demands flexible implementation strategies.
Key Highlights / Details
Vision and Components of IMEC
- Proposes maritime connectivity between Indian ports (Mumbai/Mundra) and the UAE.
- Plans for high-speed rail links connecting UAE → Saudi Arabia → Jordan → Haifa (Israel).
- Goods to be shipped further to Europe via Mediterranean ports.
- Infrastructure includes:
- Clean hydrogen pipeline
- Electricity grid interconnectivity
- High-speed undersea digital cable
- Port modernization and logistics integration
Geopolitical Background
- IMEC emerged from strengthening ties under the I2U2 framework (India, Israel, UAE, U.S.).
- Supported by the EU, France, Germany, Italy, Saudi Arabia, U.S. during G20 2023.
- Launch was enabled by stability in West Asia post Abraham Accords (2020).
- However, Hamas–Israel conflict (Oct 7, 2023) disrupted regional peace, impacting connectivity plans via Israel.
European Interests
- With Arctic sea routes opening due to climate change, Mediterranean economies fear trade diversion.
- Countries like Italy and Greece see IMEC as essential to retain influence in maritime trade.
- The EU is India’s largest trading partner ($136 billion+ trade), making Mediterranean access crucial for India.
Strategic Importance
- Red Sea security disruptions by Houthi attacks have forced diversions via Cape of Good Hope, raising shipping time and fuel costs.
- IMEC offers alternative and secure trade routes.
- Provides counterbalance to China’s Belt and Road Initiative (BRI).
- Enhances India’s role in the Global Supply Chain Resilience Initiative.
Future Adjustments Proposed
- Expand corridor to include ports in Saudi Arabia and Egypt for flexibility.
- Adapt routes based on region-specific security and political equations.
- Deepen India–Arab economic ties to reduce influence of Pakistan in West Asia.
Relevant Prelims Points
- IMEC launched: G20 Summit, New Delhi (2023).
- Member stakeholders: India, UAE, Saudi Arabia, Jordan, Israel, EU, U.S.
- I2U2 grouping: India, Israel, UAE, U.S. (focus: economic cooperation).
- BRI Counterpart: IMEC seen as India-U.S.-EU strategy to counter China’s BRI.
Relevant Mains Points
- GS2 – International Relations
- IMEC enhances India’s Act West Policy and economic diplomacy.
- Reflects India’s role in multipolar global connectivity initiatives.
- GS3 – Economy & Infrastructure
- Boosts supply chain resilience.
- Reduces logistics costs and dependency on vulnerable sea lanes.
- GS3 – Security
- Addresses maritime security risks in Red Sea and Hormuz Strait.