The 10th edition of the Raisina Dialogue, India’s premier conference on geopolitics and geo-economics, is currently underway in New Delhi. One of the major discussions at the event, organized by the Observer Research Foundation (ORF) in partnership with the Ministry of External Affairs (MEA), revolves around the ambitious India-Middle East-Europe Economic Corridor (IMEC).
Initially unveiled during the G20 Summit in New Delhi (September 2023), the project has garnered international attention. Countries including India, Saudi Arabia, the European Union, the UAE, France, Germany, Italy, and the United States have signed a Memorandum of Understanding (MoU) to collaborate on this transformative trade route.
What is IMEC?
The IMEC is a multimodal trade and transport corridor designed to connect India to the Middle East and Europe through rail and maritime links. It consists of two major corridors:
- The East Corridor: Connecting India to the Gulf
- The Northern Corridor: Connecting the Gulf to Europe
Once completed, the corridor will significantly reduce trade costs, improve efficiency, create employment, and minimize carbon emissions. Experts estimate that the IMEC could cut transport times between India and Europe by up to 40%, offering a strategic alternative to China’s Belt and Road Initiative (BRI).
The Geopolitical Importance of IMEC
Beyond its economic benefits, the IMEC has strong geopolitical implications. Analysts view it as a direct response to China’s expanding influence in the Gulf and West Asia. Poornima Balasubramanian, a research scholar at Manipal Academy of Higher Education, suggests that IMEC serves as an India-US-led alternative to China’s BRI.
Michael Kugelman, Director at The Wilson Center’s South Asia Institute, emphasized that IMEC strengthens connectivity between India and West Asia, positioning it as a counterweight to Beijing’s infrastructure push. Alberto Rizzi from the European Council on Foreign Relations also highlighted how IMEC allows India to bypass logistical challenges and compete for leadership in the Global South.
Additionally, IMEC could play a role in normalizing ties between Israel and Gulf nations, further enhancing diplomatic cooperation in the region.
Challenges to the IMEC Project
Despite its potential, the IMEC faces significant hurdles:
- Geopolitical Instability: The Israel-Gaza war could delay the corridor’s development. Saudi-Israel relations, crucial for IMEC’s success, remain strained.
- Financial Constraints: Saudi Arabia has pledged $20 billion, but the G7 estimates $600 billion is needed by 2027. So far, no country has committed to specific financial obligations.
- Exclusion of Key Regional Players: The absence of Egypt, Oman, and Turkey could limit the corridor’s outreach and effectiveness.
How India Benefits from IMEC
Despite the challenges, the IMEC offers numerous advantages for India:
- Enhanced Trade and Connectivity: The corridor will boost India’s exports to Europe, reducing transport costs and increasing market access.
- Strategic Energy Access: IMEC will connect India to Eastern Mediterranean gas fields, securing vital energy supplies.
- Stronger Ties with the West: By partnering with G7 nations and the EU, India can strengthen diplomatic and economic relations with Western economies.
- Increased Economic Presence in the Gulf: Indian businesses can leverage the corridor to expand investments in infrastructure and logistics.
- Global Power Projection: The IMEC positions India as a key player in global trade, accelerating its aspirations to become a major global economy.
