In the G20 summit held in India, it was announced to build India-Middle East-Europe Economic Corridor.
A total of 8 countries including India, UAE, Saudi Arabia, America, France, Germany, Italy and European Union, Israel and Jordan will also benefit from this project.
This new corridor starting from Mumbai will be an alternative to Chinese President Xi Jinping’s ambitious Belt and Road Initiative (BRI).
India-Middle East-Europe Economic Corridor will be 6 thousand km long, which includes 3500 km sea route.
The issue of ship and rail network between India, Middle East and America first came up during the meeting of National Security Advisors in Saudi Arabia in May.
India, America, UAE, Saudi Arabia, France, Germany, Italy and European Union have signed agreements for this corridor.
The construction of this corridor will revolutionize the trade, energy and communication sectors through water and railways.
This corridor will bring India and Europe closer. Business will be cheaper and faster.
India-Middle East-Europe Economic Corridor will be built in two parts. The first part will be the Eastern Corridor, which will connect India and West Asia.
The second part will be the Northern Corridor, which will connect Western Asia to Europe. This will ease trade from South East Asia to Europe.
After the construction of the corridor, about 40% time will be saved in transporting goods from India to Europe.
Currently, it takes 36 days for any cargo from India to reach Germany by shipping, this route will save 14 days. With direct access to Europe, import-export will be easier and cheaper for India.
Its route will be the transit rail network along with the existing multi modal transportation from UAE, Saudi Arabia, Jordan and Israel.
For this, there will be new expansion of rail and waterways. New cables will be laid under the sea for internet.
The European Union had earmarked 300 million euros for infrastructure spending during 2021-27. India also became its partner.
India will remain at the center of this corridor. This will expand logistics, infra and communication and green hydrogen.
New employment opportunities and new supply chains will be created. There will be cooperation in Make in India, Bharatmala and self-reliant India.
This corridor is being considered as the answer to China’s Belt and Road Initiative. India is not a part of BRI. Pakistan, Kenya, Zambia, Laos, Mongolia are trapped in China’s debt trap. The increasing proximity of UAE and Saudi Arabia to China will also be answered.