Dr. Arvind Kumar*
The world today stands at the crossroads of fragmentation and integration. As protectionist rhetoric resurfaces, most notably through U.S. President Donald Trump’s renewed calls for sweeping tariffs the global economy faces the looming threat of escalating trade wars, disrupted supply chains, and a retreat into economic nationalism. In this uncertain environment, the India-Middle East-Europe Economic Corridor (IMEC) emerges as a multilateral initiative designed to not only revive ancient trade routes but also forge new strategic and sustainable linkages between regions long connected through commerce, culture, and diplomacy. Announced during the G20 Summit in New Delhi in September 2023, the corridor envisions a multi-modal infrastructure network linking India, the U.S., UAE, Saudi Arabia, Israel, and key European nations that integrates rail, road, maritime, digital, and clean energy systems. Prime Minister Narendra Modi said, “The India-Middle East-Europe Economic Corridor (IMEC) will connect Asia, Europe and the Middle East. This will boost economic prospects and provide an alternative trade route to the world and strengthen the global supply chain…Describing it as a potential game-changer of the 21st century.”
Recently while addressing the IMEC High-Level Roundtable on Connectivity and Economic Growth, Sh. Piyush Goyal highlighted that “IMEC will bring down logistics costs by up to 30%, reduce transportation time by 40%, and create seamless trade linkages across continents. We will not only be linking trade; we will be linking civilizations and cultures — from Southeast Asia to the Gulf, from the Middle East to Central Europe.” By fostering collaboration and connectivity across regions, the corridor embodies a vision of shared prosperity and resilience, positioning India and Europe as key stakeholders in the evolving global energy landscape. The IMEC emerges as a transformative infrastructure project with far-reaching implications for energy security, economic development, and geopolitical dynamics.
But how can this ambitious corridor become a defining model of collaborative globalization in a time of growing economic and political fragmentation?
Reimagining the World Order through Connectivity
The India-Middle East-Europe Economic Corridor strategically leverages a new axis of cooperation forged through the Abraham Accords and the I2U2 grouping (India, Israel, UAE, and the U.S.) to address the vulnerabilities exposed by recent West Asian which have highlighted the urgent need for alternative, resilient trade routes. By bypassing volatile chokepoints like the Suez Canal, it enhances redundancy and resilience in global supply chains critical for India, whose exports to Europe and the U.S. are vital for economic growth. Geo-economically, the corridor emerges at a crucial juncture as India’s manufacturing surge, driven by Production Linked Incentives (PLIs), infrastructure development, and trade reforms, positions it as a competitive global production hub.
With the EU as India’s largest trading partner and the U.S. as its top export destination, IMEC’s integration of high-speed freight rail across the Gulf and Levant, combined with maritime links, promises up to a 40% reduction in transit time, lowering costs and significantly boosting India’s integration into global value chains. Additionally, the corridor’s inclusion of energy pipelines, digital connectivity, and green hydrogen infrastructure aligns with future-ready, sustainable trade objectives, making it a transformative initiative that mitigates geopolitical risks, accelerates economic growth, and strengthens India’s role in the evolving global order.
A Green Corridor Anchored in Sustainability
At its heart are green infrastructure components: interconnected renewable energy grids, digital ecosystems, and a clean hydrogen pipeline. These align seamlessly with the SDGs, especially SDG 7, 9 and 13. India, as a founding member of the International Solar Alliance and champion of the “One Sun, One World, One Grid” initiative, finds in IMEC a tangible opportunity to demonstrate global leadership in energy transition. With the Gulf countries also investing heavily in green hydrogen and renewables, the corridor can evolve into a green energy artery transferring surplus solar power, advancing electrolysis technologies, and decarbonizing hard-to-abate sectors like steel, cement, and heavy transport.
Moreover, digital connectivity is an essential pillar of the corridor. From laying secure undersea data cables to facilitating cross-border fintech integration via India’s Unified Payments Interface (UPI), it provides a pathway to digitally empowered commerce, cybersecurity cooperation, resilient digital infrastructure and offers a democratic, trusted alternative aligned with open standards and responsible innovation.
India’s Moment in the Global South
The economic impacts of the IMEC are projected to be substantial. According to estimates, the corridor could boost India’s GDP by up to 1.5% annually by 2030. The improved infrastructure and connectivity are expected to enhance the region’s role as a global trade hub, increasing its share of global trade flows by 5%. 3. India can leverage it as a transformative platform to drive inclusive growth and development across the Global South, using its own robust economic progress as a model and anchor. With India’s GDP growth projected between 6.4% and 6.8% for FY25 and its expanding manufacturing and services sectors especially in high-value exports like electronics, pharmaceuticals, and shipping underscore its increasing integration into global value chains. Equally important is the corridor’s promise for job creation, MSME integration, and agricultural and food processing investments best aligning with its vision of Viksit Bharat (Developed India) by 2047.It is not just a trade project it is a diplomatic doctrine. It enables India to deepen ties with Gulf Cooperation Council (GCC) nations, build regional value chains, attract foreign direct investment, and present a replicable model of Global South engagement.
The Way Forward:
IMEC is a visionary project that has the potential to transform the global economic landscape. By connecting three of the world’s most dynamic regions, it offers a unique opportunity to promote trade, investment, cooperation, sustainability and development. However, several critical steps must be taken like Institutional Coordination to harmonize infrastructure, logistics, customs, and digital standards across participating countries. This will ensure continuity amid political transitions and regional rivalries; Financing Innovation to mobilize blended finance models that combine public funding, sovereign wealth, and climate-linked private investments; establish a corridor-specific sovereign fund to de-risk investments and support start-ups, logistics players, and technology innovators; regulatory Convergence to harmonize tariff regimes, tax incentives, and digital payment interoperability frameworks. As a Global South leader, India must anchor similar frameworks that enable shared prosperity across the developing world to reshape global trade norms and promote balanced globalization. Now is the time to build not just bridges and rails but trust, cooperation, and a sustainable future.
*Editor, Focus Global Reporter
