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The corridor is expected to enhance maritime security by creating more controlled and monitored naval routes
Describing it as a major stride toward enhancing economic connectivity between Europe, the Middle East, and India, Union Minister of Commerce & Industry Piyush Goyal outlined the vast potential of the India-Middle East-Europe Economic Corridor (IMEC) during the first India-Mediterranean Business Conclave organised by the Confederation of Indian Industry (CII) in New Delhi on Friday (September 6, 2024).
Launched in 2023 amidst India’s G20 presidency, the IMEC initiative seeks to bolster India's maritime security and facilitate the swift movement of goods across significant economic zones. According to Goyal, this strategic corridor will integrate key global regions, including the European Union, the UAE, Saudi Arabia, Jordan, Israel, and others, to foster a more interconnected trading environment.
Highlighting the economic benefits, Goyal emphasized the anticipated reduction in logistics costs and improved security in goods movement, contingent upon enhanced cooperation between India and Mediterranean nations. The commerce minister pointed to the successful implementation of the Production Linked Incentive (PLI) scheme and various Free Trade Agreements (FTAs) that have propelled India’s manufacturing and export sectors to new heights.
Moreover, he underscored the potential for enriching tourism through collaborative efforts. “There is a huge potential for cooperation and mutual benefit in the tourism sector with Mediterranean countries," he noted, suggesting the formation of a dedicated working group to explore this avenue further.
The corridor is expected to enhance maritime security by creating more controlled and monitored naval routes, which is crucial for mitigating piracy and other maritime threats. Furthermore, IMEC promises to boost economic growth by opening new markets and fostering trade relationships among the countries involved. This will be particularly beneficial for India, as it seeks to diversify its trade routes and reduce its reliance on traditional pathways that are often congested and susceptible to geopolitical tensions.
In addition to economic benefits, the IMEC initiative is also seen as a platform for cultural and technological exchange among the participating nations. By fostering closer ties, it is expected to lead to collaborations in various sectors such as technology, education, and renewable energy, which are essential for sustainable development. The focus on digital infrastructure within the corridor could lead to advancements in digital services and smart city projects, further enhancing the economic impact of this grand initiative.
The commitment of the G7 to support the PGII, under which IMEC falls, underscores the international community's recognition of the importance of sustainable and resilient infrastructure to global economic stability. This support is likely to attract further investments from other global players, catalyzing the corridor's development and its potential impacts on international trade and economic cooperation.
Goyal remains optimistic about India's economic trajectory, citing its young demographic and rapid growth, which positions it to become the third-largest global economy soon. He reinforced the government’s commitment to digitization and economic reforms under initiatives like 'Make in India', which aim to streamline business operations and attract foreign investment.
In terms of maritime development, Goyal revealed plans to double the capacity of Indian ports over the next five years, building on the previous decade’s progress. This expansion is poised to enhance India’s role in the global shipping industry, including shipbuilding and cruise operations, thereby promoting a more robust economic linkage with Mediterranean nations.
The India-Middle East-Europe Economic Corridor (IMEC), announced during the 2023 G20 Summit, is part of the broader Partnership for Global Infrastructure and Investment (PGII) initiative. Originally conceptualized as the Build Back Better World (B3W) during the 2021 G7 Summit, PGII aims to enhance infrastructure and support development through combined public and private investments. This corridor is expected to significantly boost economic growth by improving connectivity between South Asia, the Arabian Gulf, and Europe, thereby facilitating better trade routes and economic integration among these regions.
The Union Minister concluded his address by affirming the mutual interests and economic prosperity that the India-Mediterranean partnership promises, envisaging a sustainable, secure, and inclusive future for all involved nations. With such collaborative efforts, the IMEC is set to not only diversify India's trade routes but also fortify its maritime security framework, reducing dependence on traditional maritime corridors that are vulnerable to geopolitical tensions.
Launched in 2023 amidst India’s G20 presidency, the IMEC initiative seeks to bolster India's maritime security and facilitate the swift movement of goods across significant economic zones. According to Goyal, this strategic corridor will integrate key global regions, including the European Union, the UAE, Saudi Arabia, Jordan, Israel, and others, to foster a more interconnected trading environment.
Highlighting the economic benefits, Goyal emphasized the anticipated reduction in logistics costs and improved security in goods movement, contingent upon enhanced cooperation between India and Mediterranean nations. The commerce minister pointed to the successful implementation of the Production Linked Incentive (PLI) scheme and various Free Trade Agreements (FTAs) that have propelled India’s manufacturing and export sectors to new heights.
Moreover, he underscored the potential for enriching tourism through collaborative efforts. “There is a huge potential for cooperation and mutual benefit in the tourism sector with Mediterranean countries," he noted, suggesting the formation of a dedicated working group to explore this avenue further.
The corridor is expected to enhance maritime security by creating more controlled and monitored naval routes, which is crucial for mitigating piracy and other maritime threats. Furthermore, IMEC promises to boost economic growth by opening new markets and fostering trade relationships among the countries involved. This will be particularly beneficial for India, as it seeks to diversify its trade routes and reduce its reliance on traditional pathways that are often congested and susceptible to geopolitical tensions.
In addition to economic benefits, the IMEC initiative is also seen as a platform for cultural and technological exchange among the participating nations. By fostering closer ties, it is expected to lead to collaborations in various sectors such as technology, education, and renewable energy, which are essential for sustainable development. The focus on digital infrastructure within the corridor could lead to advancements in digital services and smart city projects, further enhancing the economic impact of this grand initiative.
The commitment of the G7 to support the PGII, under which IMEC falls, underscores the international community's recognition of the importance of sustainable and resilient infrastructure to global economic stability. This support is likely to attract further investments from other global players, catalyzing the corridor's development and its potential impacts on international trade and economic cooperation.
Goyal remains optimistic about India's economic trajectory, citing its young demographic and rapid growth, which positions it to become the third-largest global economy soon. He reinforced the government’s commitment to digitization and economic reforms under initiatives like 'Make in India', which aim to streamline business operations and attract foreign investment.
In terms of maritime development, Goyal revealed plans to double the capacity of Indian ports over the next five years, building on the previous decade’s progress. This expansion is poised to enhance India’s role in the global shipping industry, including shipbuilding and cruise operations, thereby promoting a more robust economic linkage with Mediterranean nations.
The India-Middle East-Europe Economic Corridor (IMEC), announced during the 2023 G20 Summit, is part of the broader Partnership for Global Infrastructure and Investment (PGII) initiative. Originally conceptualized as the Build Back Better World (B3W) during the 2021 G7 Summit, PGII aims to enhance infrastructure and support development through combined public and private investments. This corridor is expected to significantly boost economic growth by improving connectivity between South Asia, the Arabian Gulf, and Europe, thereby facilitating better trade routes and economic integration among these regions.
The Union Minister concluded his address by affirming the mutual interests and economic prosperity that the India-Mediterranean partnership promises, envisaging a sustainable, secure, and inclusive future for all involved nations. With such collaborative efforts, the IMEC is set to not only diversify India's trade routes but also fortify its maritime security framework, reducing dependence on traditional maritime corridors that are vulnerable to geopolitical tensions.
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