India–Middle East–Europe Economic Corridor
MULTILATERAL ORGANISATIONS
16 OCTOBER 2025
- The recent trade friction with the U.S. has prompted India to intensify its efforts to further diversify its economic interactions with various countries worldwide.
- While India has signed an agreement with the U.K., it is also negotiating a similar agreement with the EU.
- In addition to such compacts, India should also proactively develop frameworks such as the India–Middle East–Europe Economic Corridor (IMEC).
- The IMEC visualises the upgradation of maritime connectivity between India and the Arabian Peninsula, as well as high-speed trains running from the ports in the UAE to the Haifa port in Israel through Saudi Arabia and Jordan.
- The goods transported on these networks would be shipped to and from European countries.
- Additionally, the IMEC seeks to build a clean hydrogen pipeline, an electricity cable, a high-speed undersea digital cable and consolidate existing infrastructure such as ports.
- In 2022, the India, Israel, UAE, and U.S. (I2U2) framework was launched to encourage joint investments in areas like water, energy, transportation, space, health, and food security to promote economic growth and stability.
- In 2023, the IMEC was launched on the sidelines of the G-20 Summit in Delhi, with various leaders of the EU, France, Germany, Italy, Saudi Arabia etc. endorsing the initiative.
- However, within a few weeks of the launch of the IMEC, the security situation in West Asia deteriorated significantly.
- The October 7, 2024, Hamas attacks, followed by Israel’s military actions in the region, contributed to the deterioration in the relationship between Israel and other countries in the region.
- These developments have raised questions about the feasibility of the IMEC.
- The Houthi disruption in the Red Sea trade has prompted considerable trade to go around the Cape of Good Hope in South Africa, increasing the time and costs of transportation of goods. I
- It is also still too early to determine if the recent Gaza peace plan will hold in the long run. Therefore, it is essential to find new routes to amplify economic relations between India, West Asia, and Europe.
