India, Israel, Jordan, Saudi Arabia, the United Arab Emirates, the European Union, and the United States are all part of this rail and sea route. The goal is to release an action plan within the next 60 days, and more nations are anticipated to join the corridor.
Supply chains and connectivity are projected to improve as a result of the project. A corridor like this would also assist the region’s political, economic, and digital connectivity. Such activities are also necessary for the region’s and individual countries’ overall growth.
The announcement of the proposal just prior to the third Belt and Road Initiative (BRI) Forum, which is set to take place in October, is what is most intriguing. The BRI, which has lost a lot of momentum because of the Covid-19 outbreak and China’s economic challenges, also celebrates its tenth anniversary this year. The majority of the BRI projects have been difficult to finish, and corruption and environmental issues have become more prevalent.
Source: GK Now
The president of the United States, Joe Biden, has referred to the IMEC as a big deal. There is a rush to start projects while considering the environmental realities and difficulties as well as trying to prevent any financial traps from being set up. The portion of the project that is located on the territory of the partner nations is expected to be funded by them. This might pave the way for the US to strengthen its ties with Saudi Arabia and contribute to the establishment of an interdependent relationship between Israel and the Arab countries.
For New Delhi, the IMEC is a significant event. It enables India to hold a prominent position on a project for global connectivity. India does not participate in the BRI, which has aided Beijing in enhancing its geopolitical influence and fortifying its position in the South Asian area. The IMEC can provide New Delhi an alternative to the BRI while also offering a better and more transparent way to improve connectivity, trade, and infrastructure.
With the introduction of the IMEC, two of the most populous countries in the worldu2014China and Indiau2014have significant positions on two very divergent roadmaps for economic connectivity. India will be a significant market and influence on the IMEC’s future course. This could aid in promoting increased attention to the Indian manufacturing industry, which has been a priority for the Narendra Modi administration. With the IMEC, trade times between the EU and India might be cut by 40%.
Source: WION
The fact that this is a very significant geopolitical victory is another important lesson for New Delhi. Today, India has established itself as a reliable ally of the US. The IMEC is a strong economic posture while the Indo-Pacific is a powerful strategic call. It’s important to consider how the China-US trade conflict is affecting these trends. Beijing’s economy is being negatively impacted by trade restrictions, while New Delhi is fostering closer connections with Washington by securing new trade agreements and obtaining access to advanced technology.
The fact that the IMEC announcement was made at the G20 Summit is another indication of how well India and the US get along. But this might have an effect on the tense recent relations between China and India. Beijing will oppose the IMEC because it will be seen as an anti-China organization.
What do you think about this? Comment below.
