NEW DELHI: The nitty-gritty details related to the development of the India-Middle East- Europe Economic Corridor (IMEC) are expected to be finalised within the next two to three months, according to a top government official.
The French President Emmanuel Macron will discuss the development of the corridor during his visit as the chief guest for the 75th Republic Day celebrations.
According to the official, first a special purpose vehicle will be planned for the funding and development of IMEC corridor. “Equity stakes of all the members will be determined. The executing agencies for the construction will be selected. Other important details such as road map and investment will also be finalised. This entire process of establishing modalities will take at least two to three months,” the top official said.
According to sources, when the Secretary of States Antony J Blinken was here in India in November, he had shown US eagerness for the India-Middle East- Europe Economic Corridor project.
The India-Middle East- Europe Economic Corridor comprises an Eastern Corridor connecting India to the Gulf region and a Northern Corridor connecting the Gulf region to Europe. It will include a railway and ship-rail transit network and road transport routes. The MOU on IMEC was signed by India, USA, Saudi Arabia, UAE, European Union, Italy, France and Germany during the G20 summit in September.
When asked about the challenges before the IMEC project given the crisis in the Middle East, the official said, “There may be delay in the execution but all the members are eagerly waiting to get things rolling,” the official added.
According to experts, the India-Middle East- Europe Economic Corridor project provides a strategic balancing act as Saudi Arabia and UAE bring substantial sovereign wealth funds, the US contributes financial might, and Europe contributes both financially and strategically. India, a large market and producer, adds credibility to raise loans.
“Our calculations indicate a potential 40% reduction in shipping times, translating to quicker delivery of goods. This reduction is achieved by utilizing a combination of sea and rail transport, cutting transit times and costs,” Thomas Kuruvilla, Managing Partner, Arthur D Little Middle East & India; Member of the Global Board said.
“The improved connectivity and efficiency offered by IMEC are expected to attract foreign investments. Special Economic Zones (SEZs) along the corridor are likely to become hubs for businesses, creating jobs and fostering economic growth. If successful, India-Middle East- Europe Economic Corridor has the potential to position India as a major player in the global supply chain, particularly in critical technologies and renewable energy. This could further enhance India’s appeal for foreign investments,” said Kuruvilla.