IMEC Project would have numerous geopolitical and economic benefits
The potential for economic growth in the member nations' regions may be unlocked thanks to this agreement. It will be a significant medium for economic cooperation between India, Europe, and West Asia, according to Prime Minister Narendra Modi.
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Partnership for Global Infrastructure and Investment (PGII)
US Vice President Joe Biden referred to the investment as a major deal and a game-changer for the area. The project will be carried out under the guidance of the Partnership for Global Infrastructure and Investment (PGII), a joint initiative of the G7 nations that was established last year with the goal of assisting developing nations to raise money for infrastructure projects through public and private investment.
The purpose of this corridor is to link Europe and India via the Middle East. The Eastern Corridor, which connects India to the Middle East, and the Northern Corridor, which connects to Europe, will make up the IMEC. This is a communication corridor as well as a transportation route. It will have a hydrogen pipeline, an electrical cable, a high-speed cable, a rail link, and a shipping link.
IMEC will facilitate faster trade
The railway connection can improve trade prospects, particularly those for energy products like green hydrogen, and connect shipping lanes to India and Europe. A dependable and affordable cross-border transit network will be created with the completion of the railway line under this agreement, improving the transportation of products and services across Southeast Asia and the Middle East.
In terms of shorter transit times between India, the Middle East, and Europe, this project would have numerous geopolitical and economic benefits. But perhaps most critically, it would enable India to avoid the problematic trade routes through Pakistan and Afghanistan and resurrect the ancient spice route.
Travel time will be reduced by 40%
The Suez Canal is currently the only route used to convey commodities to Europe. The commodities go across the Suez Canal from Mumbai port to Europe in 18 days. The proposed route will cut the travel time in half, to 10 days, cutting the travel time by 40%.
This agreement may increase India's commerce with the EU, which is currently its second-largest trading partner. In addition, greater accessibility, a safer supply chain, and food security would all be advantageous for India.
The manufacturing sector in India would have more employment prospects as rail infrastructure developed. The hydrogen pine line would increase trade possibilities for energy goods like green hydrogen, resulting in commerce in renewable energy.
The partners' access to a secure, reliable internet connection and improved digital communications would be made possible by the high-speed cable. This corridor may lead to multilateral finance in a variety of industries, including high-speed networks, energy, communications, and technology.
IMEC Project may revolutionize the nations
Experts think that additional time should be given for comments on this project. However, by maximising the potential of each nation's economic regions, this corridor may surely revolutionize the nations.
India might become a dominant force in Asia's global supply chain thanks to the announcement of IMEC. However, much will rely on how this agreement will be carried out and put into practise. The participating nations must resolve any problems with financing, taxation, customs, and regulation.
The financial commitment of the member nations must be made clear, and a high degree of planning and organisation is needed for the transnational network. Finally, the geopolitical challenges must be successfully addressed for this corridor to succeed.
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