Logistics, Coordination Among Nations Are Hurdles In India-Middle East-Europe Economic Corridor: Deepak Sood, Assocham
Logistics, missing rail lines and coordinating policy among numerous countries with disparate interests are major challenges In the India-Middle East-Europe Economic Corridor (IMEC), said Deepak Sood, Secretary General, Assocham in an interaction with BW Businessworld.
In the recently held G20 summit in New Delhi, India along with Saudi Arabia, the United States (US) and the European Union (EU) unveiled the IMEC, a project that aims to bolster development by fostering connectivity and economic integration between these regions along with strengthen food security and streamline supply chains.
However, Sood added, "This project's completion confronts various hurdles. Estimating and receiving appropriate funding for the project's development, operation, and upkeep are also significant problems."
What according to you would be the impact of the IMEC, an initiative that emerged as a key outcome of the G20 meetings in Delhi, India?
The IMEC is a pioneering idea that emerged from the G20 summit in Delhi, India. This ambitious project, part of the partnership for global infrastructure and investment, aims to connect ports in India, the Middle East and Europe with a comprehensive transport network. IMEC seeks to improve transportation efficiency, minimise prices, promote economic unity, create jobs and reduce greenhouse gas emissions. If implemented properly, IMEC has the potential to alter the integration of Asia, Europe and the Middle East by facilitating trade and connectivity on an unprecedented scale.
What should be the plan to fulfil this major initiative which can re-center the future of global trade to India-Middle East?
Fulfilling the IMEC objective requires thorough planning and coordination. Coordinated efforts are required to overcome logistical issues spanning train, road, and maritime routes across various countries. Completing lost rail linkages in the Middle East necessitates considerable building efforts and expenditure. Effective coordination among varied countries, each with its own set of interests and legislation, is critical. Addressing potential objections from existing channels, such as the Suez Canal, takes diplomatic skill. Furthermore, securing large funds for development, estimated between USD 3 billion and USD 8 billion per route, is a critical hurdle that necessitates creative financing options.
Considering the changing geopolitical scenario, what will be the major challenges to completing this project?
This project's completion confronts various hurdles. Logistics and connection difficulties involve meticulous planning, but missing rail lines necessitate significant development and expenditure. Coordinating policy among numerous countries with disparate interests, as well as overcoming potential objections from existing routes, such as Egypt's Suez Canal, are key challenges. Estimating and receiving appropriate funding for the project's development, operation, and upkeep are also significant problems.
Do you think this corridor can be a direct competition to China's humongous One Belt One Road initiative? If yes, then how?
While the objectives of the IMEC are comparable to those of China's One Belt One Road Initiative, it also represents an alternate strategy. Both initiatives seek to improve global connectivity and trade. IMEC, on the other hand, emphasises values-driven, high-impact, and transparent infrastructure collaboration, which may resolve concerns about local needs and environmental effects.
Furthermore, the IMEC's work with BRI countries, combined with China's economic challenges, points to a dynamic picture in which healthy rivalry and cooperation can coexist, creating different prospects for global trade and connection.
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