Why in news?
The Government and international partners recently reviewed progress on the proposed India–Middle East–Europe Economic Corridor at a high‑level meeting. The corridor aims to create a new trade and transport route linking India with Gulf countries and Europe. It was first announced during the G20 summit in September 2023 but has faced delays because of regional tensions and infrastructure challenges.
Background
- The idea of a maritime and rail corridor linking India with Europe through the Middle East gained momentum during the G20 summit held in New Delhi in September 2023. Countries involved include India, Saudi Arabia, the United Arab Emirates (UAE), the European Union and its members (France, Italy, Germany), as well as the United States, Israel and Jordan.
- The project is often described as a counter to China’s Belt and Road Initiative and as an alternative to the Suez Canal route. It plans two legs: an eastern section from Indian ports to the UAE and Saudi Arabia and a western section from Israel’s Mediterranean ports to Greece or Italy.
- Although agreements were signed in 2023, the conflict in Gaza and diplomatic differences among Gulf countries have slowed implementation.
Key features
- Multi‑modal transport: The corridor combines shipping routes across the Arabian Sea with new railway lines through Saudi Arabia and Jordan to Israeli ports, reducing travel time between India and Europe.
- Energy and digital infrastructure: Plans include laying pipelines for green hydrogen and high‑capacity fibre‑optic cables alongside railway tracks, enabling renewable energy trade and digital data flows.
- Economic integration: Participating countries aim to harmonise customs procedures, reduce tariffs and develop industrial clusters along the route to stimulate trade, manufacturing and logistics.
Significance for India
- It would reduce transport time to European markets, lowering costs for Indian exporters and making supply chains more resilient.
- The corridor offers an opportunity for India to become a regional hub for renewable energy by exporting green hydrogen produced from its vast solar and wind resources.
- Improved connectivity with the Middle East and Europe could boost tourism and create jobs in construction, logistics and services.
Challenges
- Regional instability, especially the ongoing conflict in Gaza and rivalries among Gulf powers, threatens the security of new infrastructure.
- Building railways and ports across deserts and mountains requires huge investment and cooperation among countries with different priorities.
- Lack of harmonised customs rules, financial agreements and dispute‑resolution mechanisms could delay trade flows.
Way forward
- India should engage diplomatically with all partners to keep the project on the agenda and ensure security guarantees.
- Negotiations on tariffs and common standards must continue so that goods can move smoothly across borders.
- Investment in domestic ports, logistics parks and connectivity to hinterland cities will be essential to reap the benefits of the corridor.