How Gaza War Delayed IMEC – India’s Key Connectivity Plan
Why in the News?
- India’s National Security Council Secretariat recently hosted officials from the US, UAE, Saudi Arabia, France, Italy, Germany, Israel, Jordan, and the EU to discuss the India-Middle East-Europe Economic Corridor (IMEC).
- Progress has stalled due to the ongoing Gaza war, impacting Israel’s regional relations and the project’s strategic momentum.
Background
- The IMEC was announced during the G20 Summit in New Delhi in 2023 to enhance economic connectivity between India, West Asia, the Arabian Gulf, and Europe.
- It aims to reduce shipping time from India to Europe by ~40% compared to the Red Sea route.
The corridor has two parts:
- Sea route from Indian ports to UAE, connected by high-speed freight railway through UAE, Saudi Arabia, Jordan to Haifa, Israel.
- Sea route from Haifa to ports in Greece and Italy for access to Europe’s railway network.
- The EU is India’s largest trading partner, with bilateral trade worth $137.41 billion in FY 2023-24.
Feature
- IMEC is not just a trade corridor but a platform for:
- Electricity and digital connectivity cables.
- Hydrogen pipelines.
- Efficiency and cost reduction in logistics.
- Enhanced trade facilitation.
- The project depends on regional stability, Arab–Israel rapprochement, and standardised infrastructure across borders.
- It emerged from a rare geopolitical window in 2023 when several Middle Eastern rivalries were easing.
Challenge
- Israel’s war in Gaza has damaged its relations with Arab partners, especially Jordan, and reduced the potential for Saudi–Israel normalisation.
- Arab states face domestic opposition to deeper engagement with Israel.
- Security threats from Houthis on Red Sea shipping, and instability in Lebanon, Syria, Iraq, and Iran.
- Rising insurance premiums for ships transiting the region.
- Without Israel’s integration, the western leg of IMEC cannot materialise.
Way Forward
- In the short term, India can focus on strengthening the eastern leg of IMEC with the UAE and Saudi Arabia through trade, UPI-based remittance systems, and connectivity projects.
- Long-term success requires:
- Regional stability and political agreements on the Israel–Palestine issue.
- Rebuilding trust among Arab and Israeli stakeholders.
- Resilient supply chains that can bypass conflict zones.
- India must remain adaptable, using interim modalities until the full IMEC can be realised.
FAQ – Gaza War and the Delay of IMEC
Why is IMEC in the news now?
India’s National Security Council Secretariat recently hosted senior officials from the US, UAE, Saudi Arabia, France, Italy, Germany, Israel, Jordan, and the EU to discuss the India–Middle East–Europe Economic Corridor (IMEC). Progress has slowed due to the Gaza war, which has disrupted Israel’s regional ties and stalled strategic momentum.
What is the IMEC?
Announced at the G20 Summit in New Delhi (2023), IMEC is a trade and connectivity initiative to link India, West Asia, the Arabian Gulf, and Europe. It aims to cut shipping time from India to Europe by ~40% compared to the Red Sea route.
How is IMEC structured?
Eastern leg: Sea route from Indian ports to UAE → high-speed freight rail through UAE, Saudi Arabia, Jordan → Haifa (Israel).
Western leg: Sea route from Haifa to Greek and Italian ports → Europe’s railway network.
What else does IMEC include apart from goods transport?
Electricity and digital connectivity cables, hydrogen pipelines, logistics efficiency & cost reduction, and enhanced trade facilitation.
Why was 2023 a good moment for IMEC’s launch?
It emerged during a rare geopolitical window when Middle Eastern rivalries were easing, Arab–Israel rapprochement was progressing, and major powers backed the plan.
How has the Gaza war impacted IMEC?
It strained Israel–Arab ties, especially with Jordan, reduced chances of Saudi–Israel normalisation, and increased domestic opposition in Arab states against engagement with Israel. Security risks have risen from Houthis in the Red Sea and instability in Lebanon, Syria, Iraq, and Iran, leading to higher insurance costs. Without Israel’s role, the western leg of IMEC cannot be implemented.
What can India do in the short term?
Strengthen the eastern leg with the UAE & Saudi Arabia, expand UPI-based remittance systems, and invest in infrastructure connectivity projects that don’t rely on the western leg.
What is needed for IMEC’s long-term success?
Regional stability, resolution of the Israel–Palestine conflict, trust-building among Arab and Israeli partners, supply chain designs that bypass conflict zones, and flexibility to use interim arrangements until the full corridor is operational.
Q. Regarding the India–Middle East–Europe Economic Corridor (IMEC), consider the following statements:
1. The first leg of the IMEC involves a sea route from India to the UAE, followed by a rail link to Haifa in Israel.2. The second leg involves cargo shipping from Haifa to ports in France and Spain.
3. IMEC features infrastructure for the transport of clean hydrogen.
Which of the statements given above is/are correct?
