PM Modi UAE visit, India-UAE relations, Economic ties, Regional cooperation, Middle East

PM Modi UAE visit, India-UAE relations, Economic ties, Regional cooperation, Middle East

In a notable development highlighting the strengthening bonds between India and the Gulf region, a significant pact has been finalized between India and the United Arab Emirates (UAE) to expedite the operationalization of the India-Middle East-Europe Economic Corridor (IMEC). This historic deal, signed during Prime Minister Narendra Modi’s diplomatic visit to the UAE, is geared towards bolstering regional connectivity and establishing a robust response to China’s Belt and Road Initiative (BRI).

The discussions between Prime Minister Modi and UAE President Sheikh Mohammed bin Zayed Al Nahyan have paved the way for this ambitious initiative, which was first proposed during the G20 Summit in New Delhi. Stretching from India through the UAE, Saudi Arabia, Jordan, and Israel, and continuing into Europe, this corridor is poised to overhaul the strategic and economic landscape of the region.

Zoom in

The IMEC corridor endeavors to establish a maritime and rail route connecting Europe with India via portions of the Middle East. Introduced last year, the envisioned corridor is slated to span from India across the Arabian Sea to the UAE, traversing through Saudi Arabia, Jordan, and Israel, with plans for eventual linkage to Europe. However, recent announcements have not clarified the participation of countries beyond India and the UAE. This initiative signals a deepening of the longstanding trade relationship between India and the UAE, fortified by mutual strategic interests cultivated over more than a century.

Foreign Secretary Vinay Kwatra stressed the urgency of activating the IMEC to enhance regional connectivity. He emphasized, “The primary objective is to swiftly operationalize the IMEC to strengthen, broaden, and deepen regional ties among the involved nations.” Kwatra highlighted logistics cooperation as a pivotal area of focus within the IMEC agreement, emphasizing its significance in achieving the corridor’s objectives related to supply chain services. “Our commitment to supply chain services encompasses various cargo types, including general cargo, bulk containers, and liquid bulk,” he remarked.

Amidst ongoing conflict in Gaza and regional instability, the advancement of the IMEC underscores concerted efforts by India and the UAE to advance strategic economic initiatives. This corridor could potentially present an alternative to China’s Belt and Road Initiative, offering a new pathway for global trade and enhancing regional connectivity. Additionally, given its emphasis on linking energy-rich Middle Eastern regions with energy-consuming nations in Europe and Asia, the corridor could play a crucial role in ensuring India’s energy security. Furthermore, it could serve as a platform for addressing common challenges such as maritime security and piracy.

This development coincides with the disruption of US-backed plans for further integration between Israel and its Arab neighbours due to the conflict in Gaza, with Saudi Arabia pausing normalization plans.

In the broader context, the establishment of the IMEC aligns with efforts to bolster regional connectivity and economic cooperation, despite the challenges posed by regional conflicts and security concerns. Prime Minister Modi’s recent visit to the UAE, his seventh since taking office, underscores the UAE’s significance as one of India’s leading trading partners and reflects the burgeoning partnership between the two nations across various domains, including trade, investment, and cultural exchanges. The visit witnessed the signing of 10 agreements between India and the UAE, spanning critical sectors such as energy, infrastructure, and digital projects, further solidifying bilateral relations. Bilateral trade between the two countries already approaches USD 85 billion, with the UAE ranking as the fourth largest investor in India.

Moving forward, the success of the IMEC project hinges on navigating the intricate geopolitical landscape of the Middle East and ensuring the security of trade routes. The initiative aims not only to strengthen economic ties but also to assert India’s and the UAE’s roles as pivotal players in global trade dynamics. Subsequent developments in the project are expected to garner international attention, particularly from countries and entities keen on diversifying trade routes and reducing reliance on existing corridors dominated by major powers like China.

HOME

OSHOURHUB

My name is OBIDULLA SHAKH, I am from India. I am a Digital Marketer, Content Writer, Creator. My role here at: OS-HOURHUB is to bring to you all the latest news from the world of business and finance so that you can keep getting all the information related to it, thank you!