India-Middle East-Europe Economic Corridor 

11 Sep 2023 India-Middle East-Europe Economic Corridor 

This article covers “Daily Current Affairs” and the topic details “India-Middle East-Europe Economic Corridor”. This topic has relevance in the “International Relations” section of the UPSC CSE exam.

For Prelims:

What is the India-Middle East-Europe Economic Corridor?
Who are the participants? 

For Mains:

GS2:  International Relations

Why in the news?

Prime Minister Narendra Modi’s recent announcement at the Group of 20 Leaders’ Summit in New Delhi has brought significant attention to the India-Middle East-Europe Economic Corridor.

What is the India-Middle East-Europe Economic Corridor?

• This ambitious project aims to establish a connectivity corridor from India to Europe via West Asia, potentially revolutionising trade, transportation, and digital connectivity across a vast Eurasian expanse.
• The project also presents an alternative vision to China’s Belt and Road Initiative.
• The India-Middle East-Europe Economic Corridor is a modern-day equivalent of the historic Spice Route.
• It envisions the construction of a railway link traversing the Arabian Peninsula, which would then connect with shipping routes linking India and Europe.
• This corridor aims to enhance connectivity, trade, and energy transmission, focusing on green hydrogen.

Who are the Participants?

• The initiative is jointly spearheaded by the United States and India, with key involvement from countries such as Saudi Arabia, the United Arab Emirates, Jordan, Israel, and the European Union.
• These nations have signed a Memorandum of Understanding (MoU) to establish the corridor, emphasizing economic integration, connectivity, logistics, clean energy production, and energy transmission infrastructure.

Significance

• It presents an alternative to China’s Belt and Road Initiative and aims to provide sustainable connectivity between Asia, West Asia/Middle East, and Europe.
• The corridor could bypass the congested Suez Canal, offering a more efficient transportation route.
• Furthermore, it aligns with India’s initiatives such as Make in India, Sagarmala, and Atmanirbhar Bharat, promoting self-reliance and infrastructure development.
• This project also emerged as part of the Partnership for Global Infrastructure Investment (PGII), a US-led initiative.
• It signifies a significant response to global demand for high-quality infrastructure financing, potentially boosting economic development across multiple countries and sectors.

Additional Information

• The Economic Corridor consists of two separate corridors:

• • East Corridor connecting India to West Asia/Middle East

• • Northern Corridor connecting West Asia/Middle East to Europe
• It includes a rail line to establish a reliable and cost-effective cross-border ship-to-rail transit network, enhancing the transhipment of goods and services from South East Asia through India to West Asia/Middle East and Europe.
• Professor Michael Tanchum proposed the idea of an India-Arab-Mediterranean multi-modal corridor in 2021, which partly aligns with the current project.
• This corridor could facilitate commercial transportation, integrate India’s hydrocarbon value chain, and create an innovation corridor for green energy and technology manufacturing.

The India-Middle East-Europe Economic Corridor represents a transformative initiative that could reshape regional and global connectivity, trade, and economic development. With the support of key nations and organisations, it has the potential to offer a sustainable and efficient alternative to existing trade routes while strengthening India’s position in the global economic landscape. 

Source: Data to oil, gas to goods: What is the announced sea-rail corridor from India to Europe? | Explained News – The Indian Express

Yojna daily current affairs eng med 11th Sep 2023

Q1. With reference to India-Middle East-Europe Economic Corridor, consider the following statements: 

1. The Corridor was declared in the G20 New Delhi Summit. 
2. The Corridor aims to integrate with the Belt and Road Initiative. 
3. It is the modern-day equivalent of the historic Spice Route.

Which of the statements given above is/are correct?

(a) 1 and 2 only

(b) 2 and 3 only

(c) 1 and 3 only 

(d) 1, 2 and 3

Answer: (c) 

Q2. Consider the following:

1. United States 
2. India
3. Saudi Arabia
4. Egypt 
5. Jordan
6. Iran

How many of the abovementioned countries are part of  the India-Middle East-Europe Economic Corridor?

(a) Only two

(b) Only three

(c) Only four

(d) Only five 

Answer: (c)

Q3. Discuss the significance and potential implications of the India-Middle East-Europe Economic Corridor in the context of regional and global connectivity.

Gaurav N