The leaders of India, Saudi Arabia, the UAE, EU, France, Italy, Germany and the United States announced a major joint infrastructure deal on Saturday which will connect West Asia and Gulf nations via a network of railways and then connect that with India through shipping lanes from ports in the region, people familiar with the developments said. The announcement was made during a meeting held on the sidelines of the G20 Summit in New Delhi.
Sharing my remarks at the Partnership for Global Infrastructure and Investment & India-Middle East-Europe Economics Corridor event during G20 Summit. https://t.co/Ez9sbdY49W— Narendra Modi (@narendramodi) September 9, 2023
The India – Middle East – Europe Economic Corridor will boost trade, economic partnerships and international cooperation between countries involved and also increase cooperation between Asia and Europe.
Prime Minister Narendra Modi emphasised on respect for sovereignty and territorial integrity of all nations while promoting the connectivity initiative. The leaders of India, USA, UAE, Saudi Arabia, France, Germany, Italy and the European Union Commission have signed the Memorandum of Understanding to begin the construction of the India-Middle East-Europe Economic Corridor.
The project was first discussed earlier this year in May when national security advisors (NSAs) of the US, Saudi Arabia, the UAE and India met in Saudi Arabia.
“Today we all have seen a historic agreement being done. In coming days India will be a way for economic integration with the Middle East and Europe,” Prime Minister Narendra Modi said while announcing the historic and first of its kind initiative on cooperation on connectivity and infrastructure.
The India-Middle East-Europe Economic Corridor will have two separate corridors. It will have an east corridor connecting India to West Asia (Middle East) and a northern corridor which will connect West Asia (Middle East) to Europe.
“Along with physical infrastructure, social, digital and financial infrastructure is attracting investment like never before and with this we are putting a strong foundation for developed India,” PM Modi further added.
The idea came up during the I2U2 forum talks held last year. This multilateral forum includes the US, Israel, the UAE and India and seeks to deepen economic cooperation among each other. It is unclear at this point if Israel will join the deal but for the nation to join the deal, the relationship between Saudi and Israel will have to first normalise.
It will contain a rail line that will provide a reliable and cost effective cross-border ship-to-rail transit network to supplement the existing multi-modal transport routes. This will enhance transshipment of goods and services between southeast Asia through India to West Asia and Europe.
Prime Minister Narendra Modi said that India does not contain connectivity within regional boundaries. “We believe connectivity between various countries is not only for increasing business but also trust,” the Prime Minister said.
Two years after the launch of the Partnership for Global Infrastructure and Investment with @POTUS, two new large-scale projects are seeing the light:The India – Middle East – Europe Economic Corridor.
And the Trans-African Corridor ↓ https://t.co/fmLr2opyjE
— Ursula von der Leyen (@vonderleyen) September 9, 2023
US President Joe Biden said it is a “big” deal and thanked Prime Minister Modi for bringing the concept of ‘One Earth, One Family, One Future’ into focus and making it a theme of India’s G20 Presidency and also applying it in this partnership.
“Today I am proud to announce that we finalised this historic agreement for the new India-Middle East-Europe Economic Corridor. As a key part of this corridor we are going to invest in ships and rail. It extends from India all the way to Europe connected by the UAE and Saudi Arabia,” Biden said.
The project is also key for the US as it witnesses itself losing ground in West Asia and the Gulf region, where it once was a key player, and China emerging as a major stakeholder. China after brokering peace between Iran and Saudi Arabia has tried to promote itself as a bringer of peace in the region and Chinese President Xi Jinping’s Belt and Road Initiative lays special focus on the region.
EU Chief Ursula von der Leyen also lauded the project and thanked all partners for ensuring that this project got the green light. Crown Prince and Saudi Arabian Prime Minister Mohammed bin Salman Al Saud said his country is looking forward to the project. “We look forward to the integration of the initiative and the Economic Corridor project which is announced in this meeting. I would like to thank those who worked with us to reach this founding step to establish this important economic corridor,” Mohammed bin Salman, aka MBS, said.
Italian PM Giorgia Meloni said that the corridor will build better infrastructure for a better future in low and middle-income nations. “Today the launch of the new economic corridor between India and the Middle East and Europe goes precisely in this direction and is a milestone in strengthening global interconnections. And that is why I want to thank Prime Minister Modi, President Biden, and all the others, Ursula von der Leyen, and all the others who made it possible,” she said.
“I want to thank Prime Minister Modi for organising this meeting and President Biden for sharing this meeting with him. With the European Commission here, we commit to invest alongside you on this road. And this is a very important project from Asia through the Middle East to Europe to offer big opportunities and connect people,” Macron added.
