FAQ: How will Middle East corridor impact trade?
CURRENT AFFIARS FOR 17TH SEPTEMBER,2023
FAQ: How will Middle East corridor impact trade?
On the sidelines of the G-20 summit, a MoU was signed to establish the India-Middle East- Europe Economic Corridor. Signatories include: India, U.S., UAE, EU, Italy, France, Germany, and Saudi Arabia.
The project forms part of the Partnership for Global Infrastructure and Investment.
The IMEC will consist of railroad, ship-to-rail networks and road transport routes extending across two corridors. The east corridor will connect India to the Gulf, while the north corridor will connect Gulf to Europe.
The aim to provide a reliable and cost-effective cross border ship-to-rail transit network to supplement existing maritime and road transport routes.
The corridor would increase efficiency, reduce costs, generate jobs, and lower greenhouse gas emissions. It will be "a green and digital bridge across continents". It would also make trade between India and Europe 40% faster, compared to the Suez Canal maritime route.