Context: On the sidelines of the G20 Summit 2023 in New Delhi, a Memorandum of Understanding (MoU) was signed between the Governments of India, the US, Saudi Arabia, the European Union, the UAE, France, Germany and Italy to establish the India – Middle East – Europe Economic Corridor (IMEC).

About the Project

• The project is a part of the Partnership for Global Infrastructure Investment (PGII) — a West-led initiative for funding infrastructure projects across the world, seen as a counter to China’s Belt and Road Initiative (BRI). 

• The project includes India, the UAE, Saudi Arabia, the European Union, France, Italy, Germany and the US.

• The project will aim to enable greater trade among the involved countries, including energy products. 

• The IMEC comprises of 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 corridor will include a rail link as well as an electricity cable, a hydrogen pipeline and a high-speed data cable.

• In the coming times, it will be a major medium of economic integration between India, West Asia and Europe.

• The rail and shipping corridor is part of the Partnership for Global Infrastructure Investment (PGII) 

Significance

• It would increase prosperity among the countries involved through an increased flow of energy and digital communications.

• The project would help deal with the lack of infrastructure needed for growth in lower- and middle-income nations.

• The IMEC is being envisioned as a network of transport corridors, including railway lines and sea lanes, that is expected to aid economic growth through integration between Asia, the Arabian Gulf, and Europe.

• It is seen as a counter to China’s Belt and Road Initiative (BRI). 

Key facts about the PGII

• It is a collaborative effort by G7 nations to fund infrastructure projects in developing nations.

• It is a developmental initiative aimed at narrowing the infrastructure gap in developing countries as well as help towards accelerate progress on SDGs globally.

• The infrastructure plan was first announced in June 2021 during the G7 Summit in the UK.

• Collectively, it aims to mobilise nearly $600 billion from the G7 by 2027 to invest in critical infrastructure that improves lives and delivers real gains for all of our people.”