India, UAE launch IMEC trade route initiative: Bloomberg
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The project was initially announced in September 2023 but was later delayed due to the outbreak of the war on Gaza.
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Containers are piled up at a terminal at the Jawaharlal Nehru Port Trust in Mumbai, India, Thursday, June 29, 2017 (AP)
Bloomberg reported on Wednesday, citing Indian diplomat Sunjay Sudhir, that India and the UAE have begun to work on the India-Middle East-Europe Economic Corridor (IMEC), an initiative that aims to establish an alternative trade route from India to Europe.
"India and UAE being the first two countries in the corridor, it is very important for us to take the lead," Indian Ambassador to the UAE, Sunjay Sudhir, told Bloomberg.
A significant portion of India's trade with Europe passes through the Red Sea, he said, noting that the creation of alternative routes is essential given the present geopolitical context.
During Indian Prime Minister Narendra Modi's visit to the UAE from February 13-15, India and the UAE signed a framework agreement to initiate work on the IMEC, Sudhir said.
He added that India's government ministries responsible for ports and shipping commenced discussions with the port authorities in Abu Dhabi regarding this initiative.
Read more: Israeli war on Gaza disrupts US geopolitical trade route, IMEC
This comes against the backdrop of heightened tensions between China and India. Observers have argued that the construction of the corridor is explicitly aimed at containing China in global trade.
A report by Politico in December 2023 detailed that the purpose of the project is to create an alternative to China's Belt and Road Initiative, from which India, as well as the US, will benefit.
"American interest in exploring and developing Indian supply chains has intensified under Biden," a senior Indian diplomat based told Politico. "The US is committed to making this a success; it’s a big part of their design," he said.
The project was initially announced in September 2023 but was later delayed due to the outbreak of the war on Gaza.
The genocide has sparked several resistance movements across the region to initiate operations targeting "Israel" or Israeli-linked elements.
Among them are the Ansar Allah resistance movement in Yemen. Since the start of the Gaza genocide, they have been actively targeting Israeli-linked vessels.
Besides Israeli-linked vessels, transit through the Red Sea is normally safe for all commercial ships and vessels.
However, due to aggressions perpetrated by US-UK naval forces on Yemeni positions, the Red Sea route has become difficult to access.
The construction of the IMEC corridor will thus bypass the Red Sea route by building a trade route stretching from India to Europe and will involve both sea routes and rail routes.
Starting from India, the corridor will first transit through the UAE, followed by Saudi Arabia, the occupied territories, to finally reach Europe.
Read more: Unlike China, India will not become an economic superpower: Report
