ETInfra@G20: New econ corridor to make India-Europe trade 40% faster – ET Infra

NEW DELHI: The India-Middle East-Europe Economic Corridor, which was formally announced at the G20 Summit, will enable the trade time between India and Europe to become 40% faster. Currently, it takes anywhere between 20 to 30 days for the transport of cargo through the Suez Canal.

On September 9, India, Saudi Arabia, the European Union, the United Arab Emirates, France, Germany, Italy and US, together signed a Memorandum of Understanding and affirmed their commitment to work together to establish the India-Middle East-Europe Economic Corridor.

The corridor will involve establishment of rail link, digital network as well as infrastructure for electricity and clean energy.

“This is nothing but historic. It will be the most direct connection to date between India, the Arabian Gulf and Europe with a rail link that will make trade between India and Europe 40% faster, with electricity cable and clean hydrogen pipeline to foster clean energy trade between Asia, Middle East and Europe, with a high speed data cable to link some of the most innovative digital ecosystems in the world and create business opportunities all along the way,” said Ursula von der Leyen, President of the European Commission at the G20 meeting.

According to the Memorandum of Understanding, IMEEC will comprise two separate corridors, the east corridor connecting India to the Arabian Gulf and the northern corridor connecting the Arabian Gulf to Europe.

“As a key part of this corridor, we are going to invest in ships and rail that extends from India all the way to Europe, connected by the UAE, Saudi Arabia, Jordan, and Israel…,” said US President Joe Biden.

Italian Prime Minister Giorgia Meloni referred the initiative as a “milestone in strengthening global interconnections.”

The funding for the corridor will be covered under the ‘Partnership for Global Infrastructure and Investment’, an initiative launched by the G7 nations as a counter to China’s Belt and Road Initiative.

The participating countries will meet within the next sixty days to develop and commit to an action plan with relevant timetables for developing the corridor.