The India-Middle East-Europe Economic Corridor: A Game Changer in Global Politics
- MGMMTeam
- Mar 19
- 5 min read
At the G20 Summit in New Delhi in September 2023, global leaders introduced the India-Middle East-Europe Economic Corridor (IMEC). A Memorandum of Understanding was signed by Saudi Arabia, the European Union, India, the United Arab Emirates (UAE), France, Germany, Italy, and the United States, committing to collaborate on advancing the project.
The IMEC is designed as a strategic response to China’s extensive Belt and Road Initiative.
US President Donald Trump reaffirmed his support for the IMEC during Indian Prime Minister Narendra Modi’s visit to Washington in February, calling it “the greatest trade route in all of history.”
But what role will the IMEC truly play? How will it deliver on its potential as a transformative project? Let’s explore.
What is the IMEC corridor?
The proposed International Middle East Economic Corridor (IMEC), put forward by India, Saudi Arabia, the European Union, the UAE, France, Germany, Italy, and the United States, is a system of interconnected railroads, ship-to-rail (combining road and sea transport), and road routes. It spans two main corridors: the eastern corridor connecting India to the Gulf, and the northern corridor linking the Gulf to Europe.
According to the proposal, IMEC would facilitate the movement of goods and services from India to the UAE, Saudi Arabia, Jordan, Israel, and Europe, with stakeholders stating that its completion would lead to increased efficiency, cost reductions, economic unity, job creation, and lower greenhouse gas emissions.
Foreign affairs expert Robinder Sachdev told the South China Morning Post that once operational, the IMEC could reduce transport times by up to 40%, providing India with more affordable access to European markets.
When it was announced during the G20 Summit in New Delhi, Indian Prime Minister Modi hailed the IMEC as “a beacon of cooperation, innovation, and shared progress.” At the same time, former US President Biden called it “the real big deal.”
European Commission President Ursula von der Leyen emphasized that the corridor was “more than ‘just’ a railway or a cable, it is a green and digital bridge across continents and civilisations.” She also described it as the “most direct link” between India, the Gulf, and Europe, reducing trade time between India and Europe by 40%.
What are the political dynamics surrounding the IMEC?
The corridor extends beyond economic integration or geoeconomics, as some experts suggest—it also carries significant geopolitical ramifications.
Many analysts view the IMEC as a strategic counterbalance to China’s Belt and Road Initiative, particularly as Beijing’s presence in the Gulf and West Asia continues to expand. Echoing this perspective, 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, director of the South Asia Institute at The Wilson Center, noted that the plan could serve as a significant response 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 posted on X.
Policy fellow Alberto Rizzi from the European Council on Foreign Relations highlighted that the IMEC would enable India to overcome connectivity challenges while also positioning itself as a competitor to China in leading the Global South.
Additionally, some analysts suggest that the IMEC could signal a further normalization of relations between Israel and Gulf nations.
What obstacles does the IMEC face?
Despite the numerous benefits the IMEC offers, there are significant challenges that could hinder its realization.
First, geopolitical tensions, particularly the Israel-Gaza conflict, could slow the IMEC's progress. As highlighted by The Diplomat, "For Israel, a permanent resolution in Gaza will remain a priority over the IMEC in the near future. This will negatively impact the prospects of Saudi-Israel normalization, which many believe is essential for the IMEC’s operation."
Additionally, as Israel continues its military actions in Gaza, it may be increasingly difficult for many Arab nations to engage with Israel, let alone collaborate on regional integration efforts.
Another major issue is funding. While Saudi Arabia has committed $20 billion to the IMEC, this is just a small fraction of the $600 billion the G7 aims to raise by 2027. Furthermore, none of the member countries have financial obligations toward the IMEC, making the overall funding situation uncertain.
Geopolitical experts also point out that the absence of key regional players, such as Egypt, Oman, and Turkey, could be problematic. Their exclusion limits the IMEC's reach and poses a risk of inefficiency in a project already burdened with structural, logistical, financial, and geopolitical challenges.
How does India gain from IMEC?
Despite the numerous challenges, analysts highlight that once operational, the IMEC will offer significant benefits to India in various ways. Robinder Sachdev stated in an interview with 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.”
The IMEC also offers India a chance to strengthen its relationship with the West, especially Europe. This is crucial given the unpredictable shifts in the global order under US President Donald Trump.
Additionally, the IMEC facilitates India’s growth in trade and economic ties with the Arab Gulf region. It will boost India’s economic influence there and provide opportunities for Indian businesses, already present in the area, to invest in crucial infrastructure development.
The IMEC will also link New Delhi to the offshore gas fields in the Eastern Mediterranean, an important move as India's energy demands continue to rise.
With the IMEC, India is poised to become a significant player on the global stage. As highlighted in a report by The Indian Express, “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.”
Beyond its economic advantages, the IMEC will serve as a catalyst for cross-cultural exchanges and deeper mutual understanding. This initiative has the potential to bridge ideological and religious gaps, encourage tourism, expand educational opportunities, and cultivate a more interconnected regional identity.
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