The India-Middle East-Europe Economic Corridor could revolutionise the world trade and can be an answer to China’s ‘Belt and Road Initiative’
The India-Middle-East-Europe Economic Corridor (IMEC) is one of the strategic breakthrough ideas of the 21st century for economic and transcontinental relationships across the globe. Never since the Belt and Road Initiative has such a serious attempt been made to define trade across land, sea, and human habitation.
If successful, global trade will never be the same again. IMEC consists of two main segments: the East Corridor, which connects India to the Middle East, and the North Corridor, which links the Middle East to Europe. In the first case, the route travels through sea and land across the territorial jurisdictions of the UAE, Saudi Arabia, and Jordan, and in the case of the north corridor, it links the Middle East to Europe via Israel and Greece. Put together, it enhances supply chain efficiencies exponentially.
Put simply, it builds up technological advancement, moving it towards sustainable commerce. It will affect the availability of global clean energy and alter living styles to eliminate fossil fuels.
The use of fibre optics at this scale has never been attempted before. The Belt and Road Initiative would not have the technological bite or the potential for a breakthrough in energy initiatives.
Put simply, the corridor involves eight key participants: India, Saudi Arabia, the UAE, Jordan, Israel, France, Germany, and Italy. The support of the US is crucial. The shipping time is reduced, and regional cooperation is key.
The advantages are, of course, reduced transit times, taking the content of shipment beyond the Suez Canal and building upon energy and digital technologies. The outcome would be a seminal impact coupled with economic input.
Linking up Middle East partnerships with European Union connectivity is set to redefine global commerce. Economic diversification will follow.
In this era, reduced timing is the key to development. Ports, shipping, and multimodal connectivity hold the key. Many feel that it takes the principle of ‘neighbourhood first’ beyond rhetoric and creates new partners in the domain of international commerce.
The kind of parallel investments required, in cognate areas, could well redefine the nature of investments which trade and commerce would require. The existing sea routes require a newer kind of shipping, and internal harmonisation in some sectors may become necessary. This would require new standardisation and a revision of areas such as the Motor Vehicles Act.
So far, the talk has been, predominantly, of an undersea grid, the time has come to act on it. Put simply, one approach, one focus, one grid could become a reality, and green hydrogen would be a matter of routine. Standards and styles of living will get impacted.
Human Resources Development would be linked to trade and connectivity, and the nature of education will further change to link up with the needs of many nations including the Middle East.
Some have envisaged the possibility of skill corridors. Such an intervention takes time and requires a conversation beyond intellectual protocols.
Much of the rollout will depend on how skills are organised amid concerns of localisation and cross-border flows. Skilled manpower riding on the strength of hard infrastructure, could enable IMEC to bring cultures closer together and make IMEC not only an economic warhorse but also a way to link skills with resources. Along with connectivity and energy projects, the whole process will require more agile banking and finance. It may become a surrogate for commerce in parts of the long link between India and Europe through which this route will traverse.
All this would have an impact on cross — border transfers of money. Digital exchanges would receive a push to ensure commerce grows along with human welfare.
There are other possibilities that may be difficult to forecast at this stage. Illustratively, Iraq has shortlisted 11 international firms to operate the Grand Faw Port. These include China Merchants Port Group, Adani, ICTSI, Cosco, ABM Global Shipping, and more. A decision is anticipated in early 2025.
It would be natural to consider alternate proposals across the length of a link from India to Europe, and the Turkish President has some views on this. He has felt unhappy about the proposal bypassing Turkey. The result has been talk of the ‘Iraq Development Road Project,’ but that is another story.
The India — Middle East — Europe Economic Corridor could revolutionise the world trade as it has the potential to not only ease the trade but also increase the world connectivity. Put simply, here is the possibility where an economic corridor redefines the future of trade and commerce for well over half a century and possibly more. It may be an idea well worth supporting, observing constructively, and more.
(The writer is an internationally acclaimed management consultant. Views expressed are personal)
