The US, Saudi Arabia, India, and other nations are discussing a potential infrastructure deal to enhance trade between the Gulf and South Asia through railways and ports, in an effort to counter China's Belt and Road initiative.
US President Joe Biden described India's plan to build a rail and shipping corridor linking India with the Middle East and Europe as a "game-changing investment" during the G20 Summit, aiming to boost trade, transport energy resources, and improve digital connectivity.
India, along with the US, EU, Saudi Arabia, and UAE, has signed a deal to establish the India-Middle East-Europe Economic Corridor (IMEE EC) as an alternative to China's One Belt One Road (OBOR) initiative, aiming to provide faster and cheaper transportation options to west Asia and Europe.
The India-Middle East-Europe Economic Corridor (IMEC), considered an alternative to China's Belt and Road Initiative, is being hailed as the "largest cooperation project in our history" by Israeli Prime Minister Benjamin Netanyahu, who believes it will reshape the Middle East and benefit the entire world.
The proposed India-Middle-East-Europe Corridor, seen as a rival to China's Belt And Road Project, will be a bankable project that brings in revenue and avoids the debt trap, according to Railway Minister Ashwini Vaishnaw.
Israel is set to become a global transportation hub as it plays a crucial role in the proposed India-Middle East-Europe Economic Corridor, which will connect the three regions through rail, gas, and fiber optics lines.
The announcement of the Indian-Middle Eastern Economic Corridor at the G20 Summit will bring global attention to the ancient Red Sea trade route, as mentioned in Scottish historian William Dalrymple's book "The Golden Road."
A new multibillion-dollar rail and shipping corridor called the India-Middle East-Europe Economic Corridor was announced at the G20 summit, which aims to enhance connectivity and integration between participating countries and boost economic growth in the Middle East.
A new ports and railway corridor for the Middle East and South Asia, which includes train links to India, has been unveiled at the G20 summit in Delhi as a response to China's Belt and Road Initiative.
With the right reforms, India has the potential to become the next engine of global growth, benefiting from major economic re-alignments caused by China's slowdown and the US diversifying its supply chains. Major corporations are already investing in India, recognizing its potential. However, India needs to overcome challenges such as high tariffs, infrastructure improvements, and regional cooperation to fully realize its manufacturing potential and attract foreign investment.
India and Saudi Arabia are discussing the possibility of trading in their local currencies, potentially ending their reliance on the US dollar for cross-border transactions.
Saudi Arabia and India have significantly increased their level of engagement and cooperation, with numerous agreements signed during the recent visit of the Saudi crown prince to India, indicating potential for India to contribute to the Kingdom's Vision 2030 transformation plan and ongoing megaprojects such as NEOM.
Israel's declaration of war on Hamas could impact India's plans to build an India-Middle East-Europe economic corridor, as it may drive up insurance premiums and shipping costs and derail the entire project unless all countries in the region are on board. Israel is India's 11th largest trade partner, and any disruption in trade could hurt India economically.
