Stamp on new trade corridor to counter China’s BRI push
India, Saudi Arabia, the European Union, the United Arab Emirates (UAE), France, Germany, Italy and the US came together for the India-Middle East-Europe Economic Corridor (IMEC)
A galaxy of global leaders unveiled on Saturday an ambitious trade and infrastructure project linking India, the Middle East and Europe in a first-of-its-kind initiative that proposed building a modern-day spice route involving ports, electricity, data networks and energy pipelines.

The initiative — announced on the sidelines of the G20 leaders’ summit in New Delhi — is expected to act as a counterweight to China’s Belt and Road Initiative (BRI), a mega infrastructure project that has fuelled concerns about Beijing’s expansive footprint across at least three continents.
India, Saudi Arabia, the European Union, the United Arab Emirates (UAE), France, Germany, Italy and the US came together for the India-Middle East-Europe Economic Corridor (IMEC). IMEC is expected to stimulate economic development through enhanced connectivity and economic integration between Asia, the Arabian Gulf, and Europe.
“This will give the whole world connectivity and development a sustainable direction,” Prime Minister Narendra Modi said. “It will drive sustainable development for the entire world,” he added.
“This is a big deal — a real big deal,” US President Joe Biden said, underscoring the historic nature of the pact.
IMEC, whose total proposed budget remains unannounced, will comprise two separate corridors — the east corridor connecting India to the Arabian Gulf and the northern corridor connecting the Arabian Gulf to Europe, according to documents seen by HT.
The project aims to build a “reliable and cost-effective” cross-border ship-to-rail transit network. This, the documents added, will enable the transit of goods between India, the UAE, Saudi Arabia, Jordan, Israel, and Europe. Along the railway route, partner nations intend to lay cables for electricity and digital connectivity, as well as pipes for clean hydrogen export.
During the announcement, Modi also stressed on promoting financial viability rather than adding to the debt burden, and respecting green guidelines and territorial sovereignty of partner nations in what appeared to be comments aimed at distinguishing an Indian model of global cooperation from the Chinese one.
Other than Modi and Biden, European Commission chief Ursula von der Leyen, French President Emmanuel Macron, German Chancellor Olaf Scholz, Italian Prime Minister Giorgia Meloni, Saudi Crown Prince Mohammed bin Salman, and UAE President Mohammed bin Zayed Al Nahyan participated in the event and signed a memorandum of understanding.
Ursula von der Leyen called it a historic occasion. “It will be the most direct connection between India, Arabian Gulf and Europe, with a rail link that will make trade between India and Europe 40% faster,” she said.
She also mentioned that electricity cables and clean hydrogen pipelines will foster clean energy trade between Asia, the Middle East and Europe, and a high-speed data cable will link the world’s digital ecosystem hubs. “This corridor is much more than just a railway or cable. It is a green and digital bridge across continents and civilisations,” she added.
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The project will spur economic development through enhanced connectivity and economic integration between Asia, Middle East and Europe, said officials aware of the matter. India is likely to gain significantly from the project as it will place the country at the core of trade flows from Southeast Asia to the Middle East and Europe, bestowing strategic and economic advantage to New Delhi.
“It provides us with a faster and cheaper transit option compared to what we have currently, giving a boost to our trade and exports. It can be developed as a green corridor enhancing our green transition objectives, strengthening our standing in the region and allowing our companies to participate on an equal footing in infrastructure construction,” added the officials quoted above.
Modi stressed on the importance of connectivity and infrastructure. “Along with physical infrastructure, digital, social and financial infrastructure are being given unprecedented importance. These are laying the foundations for a developed Bharat.”
“Through PGII (Partnership for Global Infrastructure and Investment), we can play a key role in filling the infrastructure gap in Global South countries. India does not limit connectivity into regional borders. We believe connectivity can also play a key role in strengthening mutual trust,” he added.
Biden underlined how unprecedented the announcement was, and said Washington will invest in ships and rail that extend from India to Europe, connected by the UAE, Saudi, Jordan and Israel, build ports across two continents, make it easier to trade, export clean energy, expand access to clean electricity, and lay cables that will connect communities to a stable and more secure internet.
“I want to thank sponsors and particularly Prime Minister Modi and Mohammed bin Salman… this is a game changing regional investment,” he said.
The Saudi crown prince said he looks forward to the integration of the economic corridor. Macron said the intention was to have the best technology, common developments and a fair process. Scholz spoke about the importance of financing and strengthening institutions such as the World Bank.
The project will help India by providing the country with a faster and cheaper transit option, boosting trade and exports, with the option of developing it as a green corridor, explained Indian officials. The corridor will also secure supply chains, generate jobs and improve trade facilitation and accessibility. Opportunities will also be created in connectivity, logistics and freight infrastructure, clean energy and hydrogen production, and energy transmission infrastructure — dovetailing with the aims of initiatives such as Make in India and Atmanirbhar (self-reliant) Bharat, said the officials quoted above.
Kishida cited Japanese support in mega projects such as Delhi Metro and said Tokyo will focus on supply chains and building industrial value chains in the Bay of Bengal region.
Speaking earlier in the day, US principal deputy national security adviser Jon Finer said the project will be “high-standards, transparent, sustainable, non-coercive” and based on demands from the region instead of being an imposition, again, drawing an indirect but sharp contrast with BRI.
Though no formal announcement was made, Amos Hochstein, Biden’s coordinator for global infrastructure and energy security, laid out a rough timeline for the project over the next year.
In the next 60 days, working groups will put together a fuller plan and set timelines. The first phase will involve identifying the areas that need investment and where physical infrastructure can be connected between countries. Hochstein said the plans can be put into place over the next year so that the project can move onto setting up finances and construction.
US security adviser Jake Sullivan said the project started coming together after Biden visited Jeddah, Saudi Arabia, in July 2022, where he emphasised a need for greater regional economic integration. The alliance was also a diplomatic coup because Saudi Arabia and Israel do not have diplomatic relations. Sullivan said the project was not a “precursor” to a potential normalisation but characterised Israel’s inclusion as significant.
(with agency inputs)
