In short :
A senior MEA official, Dammu Ravi, has stated that the ongoing West Asia crisis could delay the implementation of the IMEC project, which was announced during the G20 Summit 2023.
IMEC :
- Launched during the G20 Summit 2023 in New Delhi through an MoU.
- Part of the Partnership for Global Infrastructure and Investment (PGII), initiated by the G7 in 2021.
- Signatories include India, USA, Saudi Arabia, UAE, France, Germany, Italy, and the EU.
Corridor Segments:
- Eastern Corridor: Connects India to the Gulf.
- Northern Corridor: Connects the Gulf to Europe.
Objective:
- Build a multi-modal transport and trade corridor integrating ports, railways, roads, energy pipelines, sea routes, and digital infrastructure.
- Designed to enhance India–Middle East–Europe connectivity.
Strategic Significance:
- Offers an alternative to China’s BRI with a focus on transparency, sustainability, and sovereignty.
- Aligns with India’s One Sun One World One Grid (OSOWOG) and green hydrogen goals.
- Includes energy pipelines, undersea cables, and clean energy infrastructure.
Benefits for India:
- Cuts logistics cost by 30% and reduces travel time by 40% (vs Suez Canal route).
- Enhances India’s export competitiveness.
- Boosts FDI in infrastructure, logistics, green energy, and digital technologies.
- Aids in low-carbon transition and long-term energy security.
Key Challenges :
- Geopolitical Risks: Ongoing West Asia conflicts (like Gaza) threaten corridor stability.
- No Clear Funding Plan: IMEC lacks a defined investment and cost-sharing structure.
- Trade Disruption Risk: Maritime routes remain vulnerable to conflict and blockages.
- Limited Membership: Key regional powers (Turkey, Iran, Egypt) are excluded.
- Competition with Suez Canal: IMEC’s cost-effectiveness is still uncertain.
- Tech Integration Issues: Differing standards and cyber risks hinder seamless digital connectivity.
Political Misalignment: Conflicting national interests affect coordination
Challenges Highlighted
Geopolitical Instability:
- The Middle East conflict could act as a significant obstacle in project execution.
Competing Projects:
- Faces competition from the China-led Belt and Road Initiative (BRI).
Lack of Harmonisation:
Absence of standardised systems across nations in terms of:
- Regulations
- Customs procedures
- Transport infrastructure
- Taxation and phytosanitary norms
Governance Mechanism:
- Urgent need to establish a dedicated Secretariat for IMEC to coordinate among partner countries.
Funding Model:
- Project requires a dedicated corpus with active involvement of private sector beneficiaries.
Why It Matters for India?
- Enhances strategic connectivity and energy security.
- Reduces cargo transit time and logistics costs.
- Offers a non-China dependent route for global trade—supporting multipolar connectivity frameworks.
UPSC Relevance
GS2 – International Relations
India’s strategic cooperation with West Asia and Europe, Comparison with BRI, regional geopolitics, and diplomacy
GS3 – Infrastructure & Economy
Role of global corridors in economic growth and trade facilitation
Possible Mains Question
“What are the opportunities and challenges for India in implementing the India-Middle East-Europe Economic Corridor (IMEC)? How does it compare with China’s Belt and Road Initiative?”