Context:
On the sidelines of the G20 Summit, a Memorandum of Understanding (MoU) was signed to establish the India – Middle East – Europe Economic Corridor (IMEC).
About IMEC:
- A network of transport corridors, including railway lines and sea lanes.
- Dubbed as “a green and digital bridge across continents and civilizations.”
- Aim – To foster connectivity and economic integration between South Asia, Arabian Gulf and Europe.
- MoU Countries – India, the US, Saudi Arabia, the European Union, the UAE, France, Germany and Italy.
- Funding – A part of the Partnership for Global Infrastructure Investment (PGII).
- 2 distinct corridors –
- Eastern corridor linking India to the Arabian Gulf and Northern corridor linking the Arabian Gulf to Europe.
- They will include a rail link as well as an electricity cable, a hydrogen pipeline and a high-speed data cable.
- Significance –
- Positioned as a modern-day Spice Route
- Alternative to China’s Belt and Road Initiative.
- It also extends India’s reach to North Africa and North America.
- It complements the existing maritime and rail-road transport routes, such as the Suez Canal, North South Transport Corridor, and China’s Silk Routes.
The Build Back Better World (B3W) initiative was initially introduced in June 2021 at the G7 summit held in the United Kingdom with the aim of financing infrastructure projects in developing countries. It was conceived as a response to China’s Belt and Road Initiative (BRI). Nevertheless, it has not made significant advancements since its announcement.
Partnership for Global Infrastructure Investment (PGII):
- Officially launched (revamping the B3W Framework) in G7 summit held in Germany in 2022.
- Aim – To mobilise nearly $600 billion from the G7 by 2027 to invest in critical infrastructure that improves lives and delivers real gains for all people.
- The PGII will finance the projects from both the government and the private sector.
- The fund is not “charity or aid”, but loans.
G7 countries include the United Kingdom, the United States, Canada, France, Germany, Italy, Japan, and the European Union (EU).
Read more about the significance and challenges of IMEC
Source: Indian Express
Previous Year Question
With reference to India’s projects on connectivity, consider the following statements :
1. East-West Corridor under Golden Quadrilateral Project connects Dibrugarh and Surat.
2. The Trilateral Highway connects Moreh in Manipur and Chiang Mai in Thailand via Myanmar.
3. Bangladesh-China-India-Myanmar Economic Corridor connects Varanasi in Uttar Pradesh with Kunming in China.
How many of the above statements are correct?
[UPSC Civil Services Exam – 2023 Prelims]
(a) Only one
(b) Only two
(c) All three
(d) None
Answer: (d)
