EXPLAINED | How Gaza War Has Put Brakes On IMEC, India’s Global Trade Corridor Dream | India News
New Delhi: Released with too many fanfare during the 2023 G20 Summit, India’s ambitious India-Middle East-Europe Economic Corridor (IMEC) is now facing major delays. What was once a promising symbol of regional cooperation was removed from the rail by the ongoing Gaza War, which ruled the old fault lines and made important diplomatic bonds unanimously.
At the beginning of this week, the Secretariat of the Indian National Security Council, the United States of India, the UAE, Saudi Arabia, France, Italy, Germany, Israel, Jordan and the European Union hosted the best officials and ambassadors. However, despite this high -level participation, progress in the corridor stopped to a large extent due to the ongoing war in Gaza.
IMEC: A big ambitious corridor
IMEC has been declared as a major global connection project aimed at associating Asia with Europe through the Arabian Peninsula, under the chairmanship of India’s G20 in 2023. One of the two main roads that connect India to the Gulf, and the other is the two main roads that connect the Gulf to Europe via Israel.
The eastern leg of the corridor would carry the goods to the UAE from Indian ports. From there, he would carry cargo along a high -speed railway, Saudi Arabia and Jordan and end in the port of Hyfa in Israel. The goods would then be sent to Greece and Italy and sent to Europe through existing railway networks. This route is expected to reduce the transportation time between India and Europe up to 40% compared to the traditional Red Sea Road.
In addition to trade, the project aimed to support the infrastructure for clean energy, digital connection and logistics with common goals to increase productivity, reduce costs, reduce costs and create business.
Why did progress slow down?
When the IMEC was announced in 2023, the Middle East was going through a rare relative period of calm. Diplomatic ties between the Arab states and Israel were healed and economic cooperation was increasing. The idea of a commercial corridor through this region was possible thanks to this environment.
However, only weeks after the launch of the corridor, the region returned to the conflict with the beginning of the Gaza War. This violence not only caused major human losses, but also broke the diplomatic trust and stability that made IMEC possible.
Israel’s military campaign in Gaza reportedly killed more than 61,000 people, especially Jordan, forced its relations with regional partners. The tensions worsened due to the pressure of accepting the more Palestinian refugee, which Israel and the American Jordan, Amman strongly opposed.
Similarly, the hope of normalizing bonds with Israel, a key factor in making Saudi Arabia’s operation of IMEC’s work, has become faded. Riyadh is now taking meaningful steps towards a Palestinian state, something Israel shows very little interest.
Trade risk
Ironically, the same regional tensions (such as Houthi attacks on cargo ships), justifying an alternative to Red Sea Shipping, are now the reason why IMEC stops. Israel’s conflict in the region, Lebanon, Syria, Iraq, Yemen and potentially spread to Iran, while insurance costs for trade increased.
However, the corridor is symbolically important for Israel. In 2024, Prime Minister Benjamin Netanyahu marked the UN marking IMEC Route countries as “blessed ve and positioned the corridor as a way to strengthen Israel’s place in the region, as his policies on Palestinian alienated neighbors.
Opportunity in India’s Eastern Front
While IMEC’s western leg is faced with great obstacles through Jordan and Israel, it can live from India to the Gulf. India has strong and growing partnerships with UAE and Saudi Arabia, which leads to initiatives such as UPI (India’s Digital Payment Platform) use in both countries.
However, friction in the gulf may also cause problems. Saudi Arabia and UAE, and partners are competitors. For example, Riyadh has brought new tariffs aimed at free zones in other Gulf states, such as the UAE, as part of the effort to invest more. This kind of competition can weaken the regional unity required for IMEC’s smooth operation.
The road in front: wait and watch
In essence, IMEC’s future now depends on the conclusion of the Middle East conflict. Once the flagship project of the regional cooperation, the project, which was a “day later”, turned into a plan, which could progress when it returns.
Until then, meetings such as the last of the new Delhi can help logistics, tariff alignment and digital trade facilitating. However, the practice will remain waiting without peace and regional consensus.
IMEC was born in 2023 from a rare moment of peace. For the revival of the Middle East, it will need a moment that addresses not only trade and technology, but also to the political questions in the heart of the region.
