IMEC Overview
- Announced at G20 2023 to connect India–Middle East–Europe via two corridors (Eastern maritime + rail, Western maritime + European rail).
- Aims to cut India–Europe transit time by ~40% vs Red Sea route.
- Includes trade, digital, electricity, hydrogen links; tariff & insurance standardisation; job creation; emission reduction.
Relevance : GS 3(Infrastructure)
Structure
- Eastern leg: India’s west coast → UAE ports → freight rail across UAE–Saudi–Jordan → Haifa (Israel).
- Western leg: Haifa → Greece/Italy ports → European rail network.
Pre-war Political Window
- Arab–Israel normalisation (Saudi expected to join).
- Geo-economic gains took precedence over Palestine issue.
- Enabled multi-state cooperation with EU, Gulf, and India.
Gaza War Impact
- 61,000 killed in Gaza; deepened Arab public opposition to Israel.
- Saudi–Israel normalisation stalled; Jordan–Israel ties at historic low.
- Political legitimacy for Israel-linked corridor collapsed.
- Red Sea attacks disrupted shipping, raising insurance and freight costs.
Operational Constraints Post-war
- Western leg politically blocked; transit rights unavailable.
- Higher marine insurance premiums in conflict zone.
- Delay in tariff harmonisation, financing, and customs integration.
- Investor confidence weakened.
Current Feasibility
- Eastern leg viable due to India–UAE–Saudi ties (e.g., UPI integration).
- Western leg uncertain until Middle East stability restored.
- Corridor now a “day-after” plan, contingent on political resolution.
Strategic Stakes for India
- Diversifies away from Suez chokepoint.
- Strengthens Gulf–India–EU value chains.
- Enhances India’s role in global connectivity diplomacy.
Policy Priorities for India
- Fast-track Eastern leg with binding UAE/Saudi agreements.
- Create multilateral corridor insurance pool.
- Keep technical work alive for Western leg without political linkage.
- Upgrade west-coast ports & logistics for immediate readiness.
- Maintain backchannel diplomacy with Israel, Jordan, EU.
Risks
- Political: Prolonged conflict freezes Western leg.
- Economic: Security costs make IMEC uncompetitive.
- Technical: Fragmented standards slow interoperability.
Mitigation
- Modular implementation; risk-sharing finance models.
- Early standard-setting; customs digitalisation.
- Security cooperation in Red Sea & Arabian Sea.
