MoU Signed on India-Middle East-Europe Economic Corridor (IMEC)

Prime Minister Shri Narendra Modi and President Joe Biden of the USA jointly hosted a special gathering on the Partnership for Global Infrastructure and Investment (PGII) and the India-Middle East-Europe Economic Corridor (IMEC) on September 9, 2023, during the G20 Summit in New Delhi.

About India-Middle East-Europe Economic Corridor (IMEC)

In accordance with this Memorandum of Understanding, the governments of Saudi Arabia, the European Union, India, the UAE, France, Germany, Italy, and the United States (the “Participants”) pledge to collaborate in establishing the India-Middle East-Europe Economic Corridor (IMEC). IMEC is anticipated to promote economic growth by fostering improved connectivity and economic fusion between Asia, the Arabian Gulf, and Europe.

Two Corridors

The IMEC will consist of two distinct corridors: the eastern corridor linking India to the Arabian Gulf and the northern corridor connecting the Arabian Gulf to Europe. It will incorporate a railway system that, once fully established, will offer a dependable and cost-efficient cross-border ship-to-rail transport network, complementing the current maritime and road transportation routes. This network will facilitate the smooth movement of goods and services between India, the UAE, Saudi Arabia, Jordan, Israel, and Europe.

Along the railway route, the Participants have the intention to facilitate the installation of cables for electricity and digital connectivity, along with pipelines for exporting clean hydrogen. This corridor will play a crucial role in securing regional supply chains, enhancing trade accessibility, streamlining trade processes, and promoting a heightened focus on environmental, social, and governance aspects.

Significance

The Participants aim for this corridor to boost efficiencies, cut down on costs, foster economic unity, create employment opportunities, and decrease greenhouse gas emissions. This will lead to a groundbreaking integration of Asia, Europe, and the Middle East.

In full support of this endeavor, the Participants pledge to collaborate promptly and efficiently in organizing and executing all components of these novel transit routes. They also commit to establishing coordinating bodies that will address the entire spectrum of technical, design, financial, legal, and pertinent regulatory standards.

During his address, Prime Minister Shri Narendra Modi emphasized the significance of physical, digital, and financial connectivity. He underlined that IMEC would play a pivotal role in fostering economic integration between India and Europe.

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