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Why India to Europe trade corridor is stalling even as talks continue
A key hurdle hampering the progress of the India–Middle East–Europe Economic Corridor is the lingering uncertainty over Gaza
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Discussions on the India–Middle East–Europe Economic Corridor (IMEC) are being revived by some of its founders even as questions persist over the political will to implement the ambitious project, with analysts saying the Gaza situation is a key hurdle in hampering progress.
Unveiled in 2023, IMEC is positioned as a single economic artery connecting South Asia, the Middle East and Europe through shipping lanes, railways, energy pipelines and high-speed data cables running via the Gulf.
Planners for the corridor aim to reduce transit times and costs across the three regions, and counter China’s growing economic footprint through the Belt and Road Initiative.
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Analysts have cautioned that the project is challenging to bring to completion, as political dynamics arising from the Gaza conflict, regional security and cross-border coordination remain complicated.
India and the United Arab Emirates reiterated their commitment to IMEC during the 16th India–UAE Joint Commission meeting and the fifth bilateral Strategic Dialogue in Abu Dhabi on Monday, with both countries also emphasising deeper cooperation with the Global South.
The Abu Dhabi talks were followed by Indian External Affairs Minister S Jaishankar’s visit to Israel, where he met President Isaac Herzog, Prime Minister Benjamin Netanyahu and Economy and Industry Minister Nir Barkat on Tuesday to discuss trade and other matters, including the project.
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