A multinational rails and shipping project – India-Middle East-Europe mega economic corridor has been announced at the G20 Summit 2023. This step is seen as a challenge to China’s economic ambitions in the region. It aims to link Middle Eastern countries by railway and connect them to India by port, helping the flow of energy and trade from the Gulf to Europe. Learn what this corridor is all about, how it will benefit, and India’s trade with other countries.
What is the India-Middle East-Europe Economic Corridor?
At G20 Summit 2023, India announced the launch of the India-Middle East-Europe mega economic corridor. The rail and shipping corridor is part of the Partnership for Global Infrastructure Investment (PGII) – a collaborative effort by G7 nations to fund infrastructure projects in developing countries.
Which Countries Are Involved In This Corridor?
The corridor includes India, the United Arab Emirates, Saudi Arabia, the European Union, France, Italy, Germany and the United States. This corridor includes:
- High-speed data cable
- A hydrogen pipeline
- An electricity cable
- A rail link
How This Corridor Will Benefit?
The deal will benefit low and middle-income countries in the region, and enable a critical role for the Middle East in global commerce. It aims to link Middle Eastern countries by railway and connect them to India by port, helping the flow of energy and trade from the Gulf to Europe.
- This corridor will help India, the Middle East, and Europe to strengthen the trade among them.
- It would help to boost transport energy resources and improve digital connectivity.
- This corridor is considered to be the bloc’s counter to China’s Belt and Road Initiative.
What Data We Have So Far?
India is majorly dependent on global countries for the imports of various commodities. Its imports significantly increased in the last five years, however with the “Make In India” initiative, India is taking steps to boost its local manufacturing of products. India’s exports also rose in 2022 as compared to the previous year. Here is a look at India’s imports and exports recorded from 2018 to 2022.
India’s Trade with the United States by Year
At the G20 summit, India and the United States agreed to resolve their trade dispute lodged with the World Trade Organization (WTO). In the last five years, India’s trade with the United States has increased and stood at USD 132 billion in 2022. India’s top imports from the U.S. in 2022 were mineral fuels & oils, pearls & precious stones, machinery, mechanical appliances, etc., and electrical machinery & equipment.
India’s top exports to the U.S. in 2022 were pearls & precious stones, pharma products, mineral fuels & oils, machinery, mechanical appliances, etc., mineral fuels & oils, and electrical machinery & equipment. Below given chart shows India’s trade with the US by year.
India’s Trade with the Middle East 2022
India’s trade with the Middle East totaled USD 272 billion in 2022, in which its exports were higher than imports. The United Arab Emirates and Saudi Arabia are the top trading partners of India in the Middle East region. India’s top exports to the Middle East in 2022 were mineral fuels & oils, pearls & precious stones, electrical machinery & equipment, cereals, iron & steel, and organic chemicals.
India’s imports from the Middle East in 2022 were mineral fuels & oils, pearls & precious stones, fertilisers, organic chemicals, and plastics & articles. Here is a chart that shows India’s trade with Middle East countries in 2022.
India’s Trade with Europe 2022
India’s trade with Europe in 2022 totalled USD 214 billion. The United Kingdom, Belgium, and Germany are India’s major trading partners. India’s top imports from Europe in 2022 were mineral fuels & oils, pearls & precious stones, machinery, mechanical appliances, etc., electrical machinery & equipment, fertilisers, and optical, photographic, medical equipment, etc.
India’s top exports to Europe in 2022 were mineral fuels & oils, electrical machinery & equipment, organic chemicals, machinery, mechanical appliances, etc., pearls & precious stones, iron & steel, and pharmaceutical products. Look at the chart to analyse India’s trade with Europe in 2022.
On the eve of the 10th anniversary of China’s Belt-Road-Initiative next month, India, the United States, the United Arab Emirates, France, Germany, Italy, and the European Union signed the MoU to establish the India-Middle East- Europe Economic Corridor (IMEC) to connect Asia and Europe for promoting economic integration.
