A multinational rail and shipping project connecting India with the Middle East and Europe was announced on the sidelines of the G20 summit in New Delhi and is seen as a challenge to China’s economic aspirations in the area.
The corridor, involving India, Saudi Arabia, the United Arab Emirates, Jordan, Israel, and the European Union, would help boost trade, deliver energy resources, and improve digital connectivity.
U.S. President Joe Biden emphasized the importance of this initiative as a countermeasure to China’s Belt and Road initiative, positioning the United States as a competitive partner for developing countries.
President Biden expressed his enthusiasm, labeling it a “real big deal” that will bridge ports across two continents and lead to a “more stable, more prosperous, and integrated Middle East.” He highlighted the limitless opportunities it presents for clean energy, clean electricity, and community connectivity through cable laying.
Indian Prime Minister Narendra Modi, who hosted the summit, said: “Today, as we embark upon such a big connectivity initiative, we are sowing the seeds for future generations to dream bigger”.
Ursula Von der Leyen, President of the European Commission, described it as a “green and digital bridge across continents and civilizations,” highlighting its sustainable and technologically advanced nature.
Saudi Crown Prince Mohammed bin Salman welcomed the project, emphasizing its potential to develop railway networks and infrastructure while creating long-term business opportunities.
About the Economic Corridor
The India-Middle East-Europe Economic Corridor will consist of two corridors:
- The Eastern corridor, connecting India to the Middle East and West Asia
- The Northern Corridor, linking Europe to the Middle East and West Asia
This corridor will span from India to the UAE, passing through Saudi Arabia, Jordan, and Israel, eventually reaching Europe.
While specific financial details were not disclosed, it is clear that the potential economic benefits are immense. It also holds immense strategic and economic potential for India.
The primary beneficiaries of this deal will be low and middle-income countries in the region, fostering their economic growth and providing access to global commerce, according to Jon Finer, the US Deputy National Security Adviser.
Moreover, this initiative is taking place in the context of broader diplomatic efforts in the Middle East, including the prospect of Saudi Arabia recognizing Israel. U.S. Deputy National Security Adviser Jon Finer underscored that this deal could contribute to reducing regional tensions and addressing conflicts in the Middle East.