West Asia conflict only strengthens case for India-Middle East Corridor: Jaishankar

In a keynote address at the CII India Mediterranean Business Conclave on September 6, 2024, External Affairs Minister Dr. S. Jaishankar highlighted the transformative potential of the newly announced India-Middle East-Europe Economic Corridor (IMEC). He emphasized that despite the ongoing volatility in West Asia, the corridor offers a strategic opportunity to strengthen global connectivity, reduce risks, and build resilience across critical regions.

Striking an optimistic note on the future of the landmark India-Middle East-Europe Economic Corridor (IMEC), External Affairs Minister S. Jaishankar stressed that the ongoing conflict in West Asia and disruptions caused by it have only made the case for derisking and the corridor stronger.

“The ongoing conflict in West Asia understandability has generated concerns about some of the contemporary initiatives,” said Dr Jaishankar at the CII India Mediterranean Business Conclave in New Delhi on September 6, 2024, “Disruptions in crucial shipping routes that have increased shipping costs and necessitated the rerouting of trade flows, have added to our collective worries. But if you reflect on these happenings, they only strengthen the case for derisking.” “As the three hubs of India, Europe and the Middle East step up their interactions, connectivity will be more needed, not less,” he added.

The IMEC, first unveiled at the G20 Summit in New Delhi last year, is a significant step toward enhancing trade and infrastructure links between the three vital hubs of India, the Middle East, and Europe. This initiative aims to create a robust, sustainable framework that will foster trade, technological collaboration, and energy cooperation, all while navigating the uncertainties caused by regional conflicts.

Cooperation Amid Volatility

Addressing business leaders and policymakers from across the Mediterranean, Jaishankar stressed the importance of this corridor in the context of current geopolitical tensions. “In a volatile and uncertain world, security and stability have to be an integral part of the calculation,” he remarked. He was referring to the growing challenges in West Asia, where ongoing conflicts have disrupted shipping routes and driven up trade costs.

“By linking the Mediterranean to the Indo-Pacific and beyond, the corridor aims to streamline logistics, ensuring more stable and efficient trade connections in the face of rising global uncertainty.

Digital Corridor

In addition to physical infrastructure, Dr Jaishankar underscored the importance of a “digital corridor” between India and the Mediterranean. “High-speed and secure flow of information, data, and digital transactions will soon become as essential as land routes and waterways,” he said.

The idea of a digital corridor is particularly intriguing, as it seeks to bolster telecommunications infrastructure, including undersea data cables and secure digital payment ecosystems. The minister pointed out that India is uniquely positioned to contribute to this effort, with its strong track record in digital infrastructure development and its expertise in advanced telecommunications networks. “India has a solid experience plus tested capabilities to bring to the table,” he said, highlighting India’s leadership in digital payment systems and digital governance, which could prove invaluable for Mediterranean nations looking to modernize.

Navigating Geopolitical Risks

Mr Jaishankar acknowledged that geopolitical risks in West Asia could complicate the execution of the IMEC, particularly with concerns about security in the region. However, he argued that these risks only strengthen the case for increasing cooperation. “As the three hubs of India, Europe, and the Middle East step up their interactions, connectivity will be more needed, not less,” Jaishankar asserted.

The IMEC’s potential to reduce reliance on volatile sea routes, like the Suez Canal, makes it a forward-looking solution. Jaishankar suggested that the corridor could provide alternative trade routes, enabling countries to mitigate risks and ensure more reliable access to key markets.

Intensifying Economic Cooperation

Jaishankar’s remarks came against the backdrop of India’s growing economic ties with the Mediterranean region, which reached $77.89 billion in trade in 2023. India is also actively involved in investments across energy, infrastructure, and technology in the region. The strategic location of the Mediterranean, home to over 600 ports and handling about 25% of global seaborne trade, positions it as a crucial junction between the East and West.

The IMEC is expected to integrate innovative logistics with sustainable practices, bolstering not only trade but also the green energy transition. Jaishankar spoke about the potential for cooperation in green hydrogen and green ammonia production, noting that Indian businesses are already actively exploring these sectors in the Mediterranean. “India has made initial commitments to become a green hydrogen hub, and several significant investments have been announced in green hydrogen projects at home and abroad, including in the Mediterranean,” Jaishankar said.

Defence, Maritime, and Energy Cooperation

Beyond the IMEC, Jaishankar emphasized the importance of defense and maritime cooperation, which he believes should parallel deeper economic ties. He pointed out that initiatives like ‘Make in India’ have gained significant traction in the defense sector, and collaboration in maritime security and resource management can further bolster the blue economy.

On the energy front, Jaishankar discussed how India’s energy transition could be a model for Mediterranean nations. He highlighted the International Solar Alliance and the ambitious ‘One Sun, One World, One Grid’ initiative, which aims to create a trans-regional green grid capable of transmitting renewable energy across different geographies.

A Collaborative Future

As India continues its rise as an economic powerhouse, it is poised to play a pivotal role in shaping global trade routes, digital infrastructure, and energy solutions. “Today, India is the 5th largest economy and could become the 3rd largest by 2030,” Dr Jaishankar pointed out. He urged Mediterranean countries to seize the opportunities presented by India’s rapid growth, particularly in sectors like urban infrastructure, digital technology, and renewable energy. “Together, we can address today’s challenges, unlock new opportunities, and build a resilient and connected future,” he said.

(Ananya Singh contributed inputs for this article)

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