At the G20 Summit Saturday, President Biden, Prime Minister Modi, and other leaders announced plans to build a massive rail and shipping corridor to link India with the Middle East and Europe.
According to the White House, the India – Middle East – Europe Economic Corridor (IMEC) will consist of two corridors – one connecting India to the Arabian Gulf and one connecting the Gulf to Europe.
Trade costs will be reduced, jobs will be created, greenhouse gas emissions will be reduced, and trade efficiency will increase, according to officials.
As part of the corridor, a railway will provide a “ship-to-rail transit network” and a way to lay cables for electricity, digital connectivity, and hydrogen pipelines for export.
The Associated Press reports that Biden called the rail project corridor to link India with the Middle East and Europe a “really big deal” when he announced multiple economic growth projects at the Summit.
Over 150 countries are involved in the Belt and Road Initiative, a massive global infrastructure project designed to curb China’s global influence.
WHAT TO WATCH OUT FOR
In the next 60 days, officials involved in the project will establish a more detailed plan and set timelines for the construction of such a project.
THOUGHT OF THE DAY
The approach we have for the Middle East that we have been implementing since the beginning of this administration is focused on de-escalating conflicts that have been ongoing in some cases for many years. The project has the potential to ease tensions in the Middle East, according to Jon Finer, U.S. deputy national security adviser, told the Economic Times.
A SUMMARY OF THE BACKGROUND
As reported by Axios Thursday, the project’s parameters will be outlined in a memorandum of understanding if negotiations are finalized by the U.S., India, Saudi Arabia and the United Arab Emirates. It was viewed as a way of normalizing relations between Israel and Saudi Arabia.