India- France Cooperation on IMEC Project

Syllabus: GS2/International Relations

Context

• India and France announced that they would continue to work closely to implement the India-Middle East-Europe Corridor (IMEC) project.

India-Middle East-Europe Economic Corridor (IMEC)

• Participants: During the Delhi G20 Summit, India, USA, UAE, Saudi Arabia, France, Germany, Italy and the European Union signed a Memorandum of Understanding (MoU) to establish the India-Middle East-Europe Economic Corridor.
• Objective: The corridor will encourage and provide impetus to economic development through enhanced connectivity and economic integration between Asia, West Asia, the Middle East and Europe.

Components

• The India-Middle East-Europe Economic Corridor will consist of two separate corridors,
  • The East corridor connecting India to West Asia/Middle East and 
  • The Northern corridor connecting West Asia/Middle East to Europe.
• The project would involve the building of a railway line across the Arabian Peninsula through the United Arab Emirates and Saudi Arabia and develop shipping connectivity to India and Europe on either end of this corridor.
• The corridor could be further developed to transport energy through pipelines and data through an optical fiber link.

Ports Which are Part of IMEC

• India: Ports in Mundra (Gujarat), Kandla (Gujarat), and Jawaharlal Nehru Port Trust (Navi Mumbai).
• Europe: Piraeus in Greece, Messina in Southern Italy, and Marseille in France.
• Middle East: Ports include Fujairah, Jebel Ali, and Abu Dhabi in the UAE, as well as Dammam and Ras Al Khair ports in Saudi Arabia.
• Israel: Haifa port.
• Railway Line: The railway line will link Fujairah port in the UAE to Haifa port in Israel, passing through Saudi Arabia (Ghuwaifat and Haradh) and Jordan.

India-France Partnership in IMEC

• Access to European Markets: France’s strategic location provides India with a crucial gateway to European markets, facilitating trade and investment flows.   
• Technological Collaboration: France’s expertise in infrastructure development, logistics, and digital technologies is invaluable for the successful implementation of the IMEC.
• Countering China’s China’s Belt and Road Initiative (BRI): India and France, both wary of the BRI’s implications, can leverage the IMEC to offer an alternative model of regional connectivity.

Hurdle before IMEC

• Vulnerability of the Strait of Hormuz: Almost the entire trade of the IMEC architecture flows through the Strait of Hormuz and with Iran’s proximity and control over the strait, the risk of disruptions remain very high. 
• Financial Viability: Securing adequate funding for such a large-scale project is essential. A clear and robust financial model is needed to attract investors.
• Geopolitical Sensitivities: The project involves multiple stakeholders with diverse interests. Navigating these complexities and ensuring consensus will be crucial.

Way Ahead

• India and France share converging interests in promoting stability and connectivity in the Indo-Pacific region, making them natural partners in this endeavor.   
• The geopolitical concerns need to be managed by striking a delicate balance in accommodating the geopolitical interests of the participating nations and addressing potential political sensitivities.

Source: TH