The world is in churn amid tariff wars, economic sanctions and continuing conflicts across the globe. Countries are closing in with protectionist measures and policies aimed at “Making Country Great Again’ slogans. The established world order is collapsing (if not effectively collapsed). The UN is unable to stop conflicts, has no say in militarily superior nations launching assaults into sovereign territories of other nations, often at flimsy pretexts, and its desperate calls against genocides are left unattended. WTO, similarly, has lost its teeth, is unable to resolve trade disputes and is left to watch as a bystander as countries impose tariffs on other countries, often at the whims of their leaders.
Amid this prevailing global scenario of gloom and despair, connectivity is emerging as the new buzzword, promising to unlock the untapped economic potential by integrating countries and regions together through corridors and trade linkages. India-Middle East-Europe Economic Corridor (IMEC) is definitely presenting itself as one such connectivity option. Pitched as a bold and transformative connectivity project, the IMEC was launched at the G20 Summit in New Delhi on 9th September 2023. In its concept, it is a bold vision to connect India with Europe across the deserts of the Arabian Peninsula. It envisions a multi-modal economic corridor involving multiple businesses, integrating railways, ports, highways, energy networks, and digital infrastructure to enhance trade, investment, and connectivity across the continents.
The Structure
The proposed structure of the IMEC has three distinct sections. The eastern section links India with West Asia via sea links connecting key ports in India to the UAE. This section has provision for a sea link as well as an undersea pipeline for data and energy transfer. The central section is the overland rail route across the West Asian region, traversing the UAE, Saudi Arabia, and Jordan and culminating at the port of Haifa in Israel. The western leg of the corridor is sea-bound, wherein the containers have to be put back on ships at Haifa, to be transported to various ports in Europe. The current alignment envisages the use of ports of Mundra, Kandla and Mumbai in India. ports of Fujairah and Jebel Ali in the UAE, followed by the port of Haifa in Israel, and along with ports Marseille in France, Trieste in Italy and Piraeus in Greece.
The project’s success involves developing modern and well-integrated ports, a seamless and well-synchronised regulatory framework and a compatible and efficient railway network. Plus, the undersea pipeline is a crucial element of IMEC as it envisages the installation of infrastructure for electricity and digital connectivity, as well as pipelines for clean hydrogen export. When implemented in full, it promises to unlock new opportunities of multi-dimensional trade through multi-modal transport linkages across regions that have traditionally been close trade partners. It has the potential to facilitate faster and more efficient movement of goods, bypassing existing bottlenecks, reducing shipping delays, lowering greenhouse gas emissions, and cutting costs.
However, even before this path-breaking project could be examined, the war in Gaza broke out on 7th October 2023, resulting in the project getting stalled even before taking off. Two years on, the Gaza war has amply proven that the IMEC in its current form has serious missing links. During the course of this war, Houthis in Yemen have often blocked access to the Red Sea and the critical Port of Haifa is inaccessible. There is therefore a need to rethink the original structure of IMEC and add links that make IMEC less conflict-prone and while enhancing its resilience and long-term viability. A western spur traversing through Egypt and terminating at one of its major Mediterranean ports offers a promising solution. Similarly, Oman’s Duqm Port, situated outside the Strait of Hormuz, provides an alternate maritime gateway to the Arabian Sea, far from potential conflict zones like Iran.
The Significance of IMEC
Geopolitically, IMEC has been pitched as an expression of India’s rise as a global power, both politically and economically, almost coinciding with its becoming the 4th largest global economy. For India, IMEC represents a strategic vision well beyond the physical infrastructure in its quest for building a more connected, resilient, and inclusive global order. It also pitches it as a hub linking its ‘Act East’ and ‘Link West’ policies, enhancing economic and geopolitical integration.
Additionally, IMEC helps India in achieving its targets towards energy transition, too. Having set a target of becoming energy independent by 2047 and achieving net-zero emissions by 2070, India’s increasing use of renewable energy across all economic spheres is central to India’s Energy Transition. Green Hydrogen is considered a promising alternative for enabling this transition. IMEC provides an opportunity for India to not only promote hydrogen as an alternative fuel and an effective long-term alternative to fossil fuels, but also export the fuel by incorporating clean hydrogen pipelines into the corridor.
Also, IMEC is seen as a geopolitical tool to bring Israel closer to the West Asian region. The inclusion of Haifa Port in Israel and the US being a part of the project without having any direct linkages or benefits clearly points in this direction.
In terms of trade between the EU and India, the IMEC is being seen as an economic game-changer and an opportunity to strengthen strategic partnerships. The President of the European Commission, Ursula von der Leyen, during her visit with a delegation of EU Commissioners to India in February 2025, had pitched for the IMEC as an important cornerstone for enhancing India-EU trade.
Progress So Far- A Reality Check
Despite being stalled for over two years due to the Gaza conflict, there is a positive momentum towards IMEC in the past few months. Whether it was PM Modi’s visit to Washington in February this year or the AI Global Summit in France in February, or the visit of EU Commissioners to New Delhi in March, one common thread is the mention of IMEC and the commitment to see that this project is implemented at the earliest opportunity.
Italy and France have nominated special envoys for the project, while India and the UAE have commenced work bilaterally on coordinating the digital regulatory framework. The launch of the India-UAE Virtual Trade Corridor and Master Application for International Trade and Regulatory Interface (MAITRI) is one such significant development. It aims to integrate Indian trade portals with the UAE counterparts to enable seamless, paperless, and efficient trade by streamlining regulatory processes and reducing transshipment and logistics costs.
The first meeting of IMEC envoys and Sherpas was held on 5-6 August 2025, hosted by India, wherein a clear sense emerged that IMEC cannot wait for the conflict in West Asia to get over, and a workaround needs to be worked out. Inclusion of Egypt and Oman within the alignment, too, is gaining traction as IMEC is being seen more as a networked alignment instead of a point-to-point corridor. Aspects of coordination within partner countries, pooling of financial resources and most importantly, making IMEC attractive and viable enough for the private sector to invest capital are being discussed. A possible meeting of Foreign Ministers is likely to take place in November 2025, before a possible IMEC Summit later.
Looking Ahead
The tariffs imposed by the US have presented a challenge for India. Europe, too, which had to submit to demands from the US, is looking to expand trade linkages and seek reliable and long-term partnerships beyond the US. The West Asian countries, too, are looking at diversifying their economies beyond oil and natural gas. Plus, the continued disruptions in trade flows due to conflicts, especially the Gaza war, are adding to the costs and frustration among partner countries, as well as an urgent need for secure connectivity options and resilient supply chains. IMEC offers the ideal solution to these disruptions by providing an alternative and reliable trade route, criss-crossing the Arabian desert.
With the right mix of infrastructure, investment, seamless regulatory framework, diplomatic engagement, and institutional coordination, IMEC can become a cornerstone of 21st-century connectivity, creating new avenues for shared prosperity. For India, IMEC offers the perfect opportunity to explore new economic partnerships and take all necessary steps to secure its national interests. Amid a tumultuous global order, IMEC could be an ideal catalyst in realising India’s vision towards Viksit Bharat @2047.
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