New Delhi

The leaders of India, Saudi Arabia, European Union and the United States launched India-Middle East-Europe economic corridor to facilitate the flow of commerce, energy and data to, from and between India the UAE, Saudi Arabia, Jordan, Israel and Europe. The project, unveiled during New Delhi G20 summit, was opposed by China which saw it a direct threat to its own ambitious Belt and Road Initiative. 

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The launch of India-Middle East-Europe economic corridor — which the US President Joe Biden hailed as 'a real big deal' — follows reports that Italy may soon exit China's Belt and Road Initiative; the former was hailed by Prime Minister Giorgia Meloni in New delhi as a "milestone in strengthening global interconnections."

"We look forward to the integration of the initiative and the Economic Corridor project which is announced in this meeting. I would like to thank those who worked with us to reach this founding step to establish this important economic corridor," Crown Prince of Saudi Arabia Muhammed Bin Salman said.

Modi's 'Bharat' gets focus on 'regional integrity' through transcontinental connectivity

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The principles of the project aim to stand in contrast to the type of infrastructure funded by China’s Belt and Road Initiative, whose funding has been slammed for being opaque and throwing poorer nations into debt traps.

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Launching the India-Middle East-Economic Corridor, India's Prime Minister Narendra Modi emphasised that connectivity initiative is not just a matter of business but a matter of trust between then and that "adhesion to international rules, respect for all nations' sovereignty and regional integrity" must form the bedrock of such ambitious initiatives. 

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A part of China's Belt and Road Initiative passes through Pakistan-occupied Kashmir (PoK) in India's north, which New Delhi says is violation of its sovereignty and regional integrity. 

India-Europe corridor via West Asia: Signs of easing tensions?

Over three years since the signing of Abraham Accords — a series of joint normalisation agreements initially between Israel, the United Arab Emirates, and Bahrain; and later Sudan and Morocco — and six months since normalisation of ties between Iran and Saudi Arabia, there have been steady signs of de-escalation from prolonged tensions in the region. 

The transcontinental connectivity project announced in Delhi stems from the signs of stability in the region and expectation of restoration of ties between Saudi Arabia and Israel.  

Also watch | Losing Momentum: China’s belt & road initiative

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According to Mohammed Soliman, director at the Middle East Institute and the strategist behind India-Israel-US-UAE partnership (I2U2), there are more agency for the countries involved in terms of drifts aligning with their own interests in India-Middle East-Europe economic corridor compared to the BRI, and this is what makes it more feasible, added Soliman. 

"Although the neighborhood is plagued by geopolitical rivalries, there seems to be a shift towards de-escalation and finding common ground after a decade of upheavals," Soliman said. 

India-Middle East-European Union economic corridor: Immediate timeline

So far no binding financial commitments have been made. 

But previously, the European Union had separately earmarked the spending of up to €300bn on overseas infrastructure investments between 2021 and 2027 from its Global Gateway project, launched to take on China's Belt and Road Initiative and defend European interests across the wider region.

"It will be the most direct connection to date between India, the Arabian Gulf and Europe," European Commission President Ursula von der Leyen said in New Delhi while sitting beside Saudi Crown Prince Mohammed bin Salman, India's Prime Minister Narendra Modi and the US President Joe Biden at the launch of partnership for Global Infrastructure  and Investment (PGII) and India-Middle East-Europe Economic Corridor.

In the next 60 days, working groups will put together a fuller plan and set timelines. 

The first phase will involve identifying the areas that need investment and where physical infrastructure can be connected between countries. 

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