Prime Minister Narendra Modi on Saturday announced the launch of the India-Middle East-Europe mega economic corridor. The project includes India, the UAE, Saudi Arabia, the European Union, France, Italy, Germany and the US.
“Today we all have reached an important and historic partnership. In the coming times, it will be a major medium of economic integration between India, West Asia and Europe,” he said. The corridor will give a new direction to connectivity and sustainable development of entire world, said PM Modi
Meanwhile, US President Joe Biden called the launch “a big deal”, saying one is going to hear the phrase economic corridor more often in the coming decade.
What is the project?
The rail and shipping corridor is part of the Partnership for Global Infrastructure Investment (PGII) — a collaborative effort by G7 nations to fund infrastructure projects in developing nations. PGII is considered to be the bloc’s counter to China’s Belt and Road Initiative.
The project will aim to enable greater trade among the involved countries, including energy products. “It could also be one of the more ambitious counters to China’s massive infrastructure program, through which it has sought to connect more of the world to that country’s economy,” AP said.
The corridor will include a rail link as well as an electricity cable, a hydrogen pipeline and a high-speed data cable, according to a document prepared by European Commission President Ursula von der Leyen. The document also called the project “a green and digital bridge across continents and civilizations.”
Why is the project being proposed?
Most Read 1Chandrayaan-3 mission: Dawn breaks on Moon, all eyes on lander, rover to wake up 2As Indo-Canadian relations sour, anxiety grips Indian students, residents who wish to settle in Canada 3Karan Johar says Sanjay Leela Bhansali did not call him after Rocky Aur Rani: ‘He’s never called me but…’ 4Gadar 2 box office collection day 40: Hit by Shah Rukh Khan’s Jawan onslaught, Sunny Deol movie ends BO run with Rs 45 lakh earning 5Shubh’s tour in India cancelled: Why is the Canada-based singer facing the music?
Speaking to AP, Jon Finer, President Biden’s principal deputy national security adviser, gave three major reasons for developing the corridor. First, it would increase prosperity among the countries involved through an increased flow of energy and digital communications. Second, the project would help deal with the lack of infrastructure needed for growth in lower- and middle-income nations. And third, it could help “turn the temperature down” on “turbulence and insecurity” coming out of the Middle East, Finer said, according to AP.
Also in Explained | Data to oil, gas to goods: What is the announced sea-rail corridor from India to Europe?
“We see this as having a high appeal to the countries involved, and also globally, because it is transparent, because it is a high standard because it is not coercive,” he added.
Also ReadChina’s ex-Foreign Minister Qin Gang removed over extramarital affair: Wh…Special session of Parliament: What Bills are likely to be introduced?What is the Vishwakarma scheme, launched for those engaged in traditional…A look at women representation in parliaments of 10 democracies
Moreover, the project could be seen as Biden’s attempt to further strengthen the G20 group to counter the dominance of China’s Xi Jinping and Russia’s Vladimir Putin.
(With inputs from AP)