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India and Italy have decided to expand cooperation in areas of trade, defence, clean energy and high technology while agreeing to work jointly in implementing the ambitious India-Middle-East-Europe-Economic Corridor (IMEEC).

About India-Middle East-Europe Economic Corridor (IMEC)

It is a major project to connect Asia, the Middle East, and Europe. It will build railways, roads, and shipping routes to make trade easier between these regions.

It was announced in September 2023 during the G20 summit in New Delhi. India, the United States, the United Arab Emirates, Saudi Arabia, France, Germany, Italy, and the European Union signed an agreement to work on this project, with the objective to improve trade and connectivity.

It will reduce transit time by 40% and costs by 30% compared to the Suez Canal route. It will also include undersea data cables and pipelines for hydrogen, which will help with climate goals.

IMEC has two parts:

Eastern Corridor: Connects India to Gulf countries like the UAE.
Northern Corridor: Links Gulf countries to Europe via Israel, Greece, and other European nations.

For example, goods from Mumbai or Mundra in India will go to the UAE. Then, they will travel by rail through Saudi Arabia, Jordan, and Israel to reach the port of Haifa. From Haifa, ships will take them to Greece, and then to Europe

What progress has been made so far?

The eastern part of IMEC, connecting India and the UAE, is moving quickly because of strong economic ties between the two countries. However, the western part faces challenges due to conflicts like the Israel-Palestine issue. This conflict affects cooperation between countries like Saudi Arabia and Israel, which are needed for the project.

What challenges does IMEC face?

Geopolitical Tensions : Conflicts like Israel-Palestine and tensions between Iran and Saudi Arabia create problems.
Infrastructure Gaps : Existing roads, railways, and ports may not handle the expected trade volume.
Financial Constraints : The project is expensive, and funding needs to be organized properly.
Regulatory Barriers : Different rules in each country can slow down trade.
Energy Security : Using renewable energy like green hydrogen requires new technology and infrastructure

Way Forward

To make IMEC successful:

A dedicated team should manage the project and ensure all countries follow the same rules for smooth trade.
Ports in India, like Kandla and Jawaharlal Nehru Port, need upgrades. Railways, roads, and pipelines should also be improved.
Political unity is essential. Countries must work together despite differences.
Trade should be simplified using digital platforms and customs harmonization.
Renewable energy and green technologies should be promoted to protect the environment.
International organizations like the World Bank and private companies should provide funding and support.

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INDIA-MIDDLE EAST-EUROPE ECONOMIC CORRIDOR (IMEC)

INDIA-MIDDLE EAST-EUROPE CORRIDOR (IMEC)

Source:

INDIAN EXPRESS

PRACTICE QUESTION

Q. Consider the following countries:

1. United States

2. Saudi Arabia

3. United Arab Emirates

4. Italy

5. Jordan

Which of the above countries are the founding members of the India-Middle East-Europe Economic Corridor (IMEC)?

A) 1, 2 and 4 only

B) 2, 3, 4 and 5 only

C) 2, 3 and 4 only

D) 1, 2, 3, 4 and 5

Answer: D

Explanation:

The India-Middle East-Europe Economic Corridor (IMEC) is a planned economic corridor that aims to boost economic growth by promoting connectivity and integration between Asia, the Persian Gulf, and Europe. The corridor is a proposed route from India to Europe via the UAE, Saudi Arabia, Israel, and Greece.

The governments of India, the United States, the United Arab Emirates, Saudi Arabia, France, Germany, Italy, Jordan, and the European Union signed a Memorandum of Understanding (MoU) for the corridor in September 2023 at the G20 New Delhi summit.

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