PM Modi's Saudi Visit: India's Leadership in Reviving IMEC

Prime Minister Narendra Modi is set to embark on a two-day visit to Jeddah, Saudi Arabia, this week, marking his first trip to the Kingdom in his third term. His visit comes at a time of significant geopolitical shifts, regional conflicts, and an ambitious economic initiative—the India-Middle East-Europe Economic Corridor (IMEC)—which has the potential to reshape global trade routes.

For Prime Minister Modi and Crown Prince Mohammed bin Salman, there is much catching up to do. (Image: Reuters)

PM Modi’s arrival coincides with ongoing regional tensions, including the conflict between Israel and Hamas in Gaza, ongoing hostilities with Hezbollah in Lebanon and the Houthis in Yemen, and simmering tensions with Iran. Syria remains unstable due to regime changes and civil wars. On the global stage, geopolitical dynamics are also shifting, with US President Donald Trump back in office and initiating a global tariff war, seeking to renegotiate trade terms with various countries. He is also working to mediate an end to the Russia-Ukraine conflict, with Saudi Arabia playing a crucial role in this process.

For both Prime Minister Modi and Crown Prince Mohammed bin Salman, there is much to discuss. Saudi Arabia has a $100 billion investment plan for India that requires acceleration, and discussions will also cover strengthening defence, energy, and trade relations. A central focus will be the IMEC: Can India, Saudi Arabia, and their regional, European, and American partners create a powerful economic corridor that can rival China’s Belt and Road Initiative (BRI)?

IMEC: The New Silk Route of Modern Times

Introduced during the G20 summit in New Delhi in September 2023, the India-Middle East-Europe Economic Corridor (IMEC) is a transcontinental trade and transport network linking India to Europe through the Middle East. It spans the UAE, Saudi Arabia, Jordan, and Israel, eventually connecting to Europe via Greece and Italy. Often referred to as a modern Silk Route, IMEC is expected to reduce logistics costs by up to 30% and shorten transportation time by 40%. For instance, the journey from Mumbai to Piraeus in Greece currently takes about 15 to 16 days, but with IMEC, this could be reduced to 10 to 11 days, saving 5 to 6 days of transit time.

The vision behind IMEC includes laying down rail lines, fiber optic cables, improving port connectivity, and establishing a seamless, secure, and resilient supply chain. This could serve as a strong alternative to China's debt-heavy Belt and Road Initiative (BRI). However, for IMEC to succeed, stability in West Asia is crucial, with Saudi Arabia, as the region's leading voice, playing a central role in this endeavor.

IMEC: Breaking Down Barriers

The project encountered a major setback shortly after the agreement was signed, when Hamas carried out the horrific October 7, 2023, attack on Israel, shifting the region’s course. In response, Israel launched a war on Gaza, and political sentiment toward Israel in Arab nations—particularly Saudi Arabia—deteriorated, just as Israel was striving to normalize relations with Riyadh, similar to the Abraham Accords signed with the UAE. The region’s hostility reached such depths that it briefly seemed like the IMEC project would not succeed. However, thanks to India’s efforts, there is renewed hope.

Foreign Secretary Vikram Misri explained that although the necessary groundwork was delayed after the 2023 framework agreement, progress has been made on "infrastructure linkages" in some individual countries. He also noted that work will soon begin on connecting electricity grids, a key component of the IMEC initiative. While the progress has been slow, the IMEC is moving forward, with certain stakeholders making headway on a more localized level.

Misri said, “The security situation in the region makes it seem as if progress has frozen on IMEC, but we have been working with select partners." He further emphasized that India is actively working to address the violence between Israelis and Palestinians in the Gaza Strip, engaging not only the Palestinians and Israelis but also Jordan, Egypt, and Saudi Arabia.

India, with its robust ties to Israel, Saudi Arabia, the US, and all other IMEC partners, is well-positioned to capitalize on its balanced standing in West Asia and its strong relationships with key stakeholders to rejuvenate the project. Prime Minister Modi has been actively pursuing this goal. Earlier this year, during his meeting with President Trump, he emphasized the IMEC's vast potential, and Trump was open to the idea. Before that, Modi met President Macron, reaffirming their mutual dedication to the project. Now, Saudi Arabia—an essential player in the IMEC—joins the effort.

Saudi Arabia: The Pillar of IMEC

Saudi Arabia is not merely another stop on the IMEC map — it is the cornerstone. Strategically positioned at the heart of the region, with significant political influence and ample investment capital, the Kingdom’s role is crucial. Under the leadership of Crown Prince Mohammed bin Salman (MBS), Saudi Arabia has embarked on an ambitious initiative, Vision 2030, aimed at reducing its reliance on oil. IMEC aligns seamlessly with this vision.

The Kingdom’s own Neom project — a $500 billion mega-city on the Red Sea — is likely to rely on IMEC for materials, technology, and talent. Indian companies are already involved in Neom’s development and design.

A fully operational IMEC would provide Saudi Arabia with a major logistics and trade advantage, connecting its Red Sea ports and the visionary NEOM city with both Indian manufacturers and European markets. For India, this partnership could reduce shipping times, bypass geopolitical chokepoints like the Suez Canal and the unstable Red Sea, and strengthen global trade resilience.

As Prime Minister Modi prepares to meet MBS in Jeddah, the discussion will go beyond trade figures and investment pledges. It will focus on deepening the strategic dimensions of the two nations’ partnership. IMEC has the potential to become the flagship project of this alliance — one that unites more than just regions. It could redefine global trade, providing a non-coercive, economically viable alternative to China’s Belt and Road Initiative. However, for this corridor to materialize, Saudi Arabia’s continued commitment and India’s proactive diplomacy will be the key drivers of success.

(This Article was originally published by News18)