With an aim to achieve further economic integration, India and some of its G20 allies have signed a historic memorandum of understanding (MoU) to create the India-Middle East-Europe Economic Corridor (IMEC). There project, which will comprise two separate corridors – the eastern corridor connecting India to the Arabian Gulf and the western corridor connecting the Arabian Gulf to Europe – will enhance trade and connectivity among the regions, experts point out.

The members as of now – India, US, UAE, Saudi Arabia, European Union (EU), Italy, France and Germany – have planned a railway route that will be a cost-effective cross-border ship-to-rail transit network to supplement the existing network, enabling transit to, from, and between the countries. Besides, a cable for energy and digital connectivity along with a clean hydrogen pipeline, are envisaged. All these plans sound ambitious.

No doubt, such a corridor will be beneficial for all. It will transform the supply chains and enhance trade accessibility, increasing efficiency, saving costs, pushing exports and creating millions of jobs. While China’s controversial Belt and Road Initiative came with lots of conditions, the India-Middle East-Europe Economic Corridor will allow each participating country the opportunity to look at its own needs. In other words, this will be a win-win situation for all.

As per the MoU, the members will meet within the next two months to develop an action plan, but the project is still a proposal, and it seems it will take some 10- to 15-years before the India-Middle East-Europe Economic Corridor comes into its full shape. By then, India will probably be a $5-$10 trillion economy. The proposed corridor will definitely help India achieve its economic goal and push its exports to $2 trillion by 2030.

I invite your opinions.