India-Middle East-Europe Economic corridor

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Overview:

Recently, the Prime Minister of India announced the launch of the India-Middle East-Europe mega economic corridor.

About India-Middle East-Europe Economic corridor:

  • The project includes India, the UAE, Saudi Arabia, the European Union, France, Italy, Germany and the US.
  • The project will aim to enable greater trade among the involved countries, including energy products. 
  • The IMEC comprises an Eastern Corridor connecting India to the Gulf region and a Northern Corridor connecting the Gulf region to Europe.
  • It will include a railway and ship-rail transit network and road transport routes.
  • The corridor will include a rail link as well as an electricity cable, a hydrogen pipeline and a high-speed data cable.
  • In the coming times, it will be a major medium of economic integration between India, West Asia and Europe.
  • The rail and shipping corridor is part of the Partnership for Global Infrastructure Investment (PGII) 
  • Significance
    • It would increase prosperity among the countries involved through an increased flow of energy and digital communications.
    • The project would help deal with the lack of infrastructure needed for growth in lower- and middle-income nations.

 

Key facts about the PGII

  • It is a collaborative effort by G7 nations to fund infrastructure projects in developing nations.
  • It is a developmental initiative aimed at narrowing the infrastructure gap in developing countries as well as help towards accelerating progress on SDGs globally.
  • The infrastructure plan was first announced in June 2021 during the G7 Summit in the UK.
  • Collectively it aims to mobilise nearly $600 billion from the G7 by 2027 to invest in critical infrastructure that improves lives and delivers real gains for all of our people.”

 


Q1) What is G20?

It is an international forum of major economies that brings together 19 individual countries and the European Union (EU) to discuss and coordinate economic policy. The G20 represents a diverse group of nations from different regions of the world, and it serves as a platform for dialogue and cooperation on various global economic issues.

Source: India-Middle East-Europe mega economic corridor: What is the project? Why is it being proposed?