Cabinet greenlights framework agreement for India-UAE Economic Corridor

New Delhi, Mar 13: Bolstering bilateral relations and strengthening economic ties, the Union Cabinet under the leadership of Prime Minister Narendra Modi has given its ex-post facto approval to the Inter-Governmental Framework Agreement (IGFA) signed between India and the United Arab Emirates (UAE) on February 13, 2024.

The agreement, which emerged during a high-level visit, focuses on cooperation for the empowerment and operation of the India-Middle East Europe Economic Corridor (IMEC).

The primary objective of the IGFA is to enhance collaboration between India and the UAE in the fields of ports, maritime, and logistics. It lays down a comprehensive framework for cooperation, emphasizing joint investment opportunities and collaborative efforts in the development of the IMEC.

The IMEC project, conceived during the G20 Summit in New Delhi, holds immense geopolitical and economic significance for India. It is part of the broader Partnership for Global Infrastructure and Investment (PGII), aimed at meeting the infrastructure needs of low and middle-income countries through transparent and high-impact initiatives.

Encompassing rail, road, and sea routes, the IMEC will consist of two main corridors: the East Corridor connecting India to the Arabian Gulf, and the Northern Corridor linking the Gulf to Europe. Additionally, the corridor will include essential infrastructure such as an electricity cable, a hydrogen pipeline, and a high-speed data cable.

Key ports involved in the project include Mundra, Kandla, and Jawaharlal Nehru Port Trust in India, along with ports in Fujairah, Jebel Ali, and Abu Dhabi in the UAE, and Dammam and Ras Al Khair ports in Saudi Arabia.

The IMEC aims to streamline transportation, reduce costs, enhance economic unity, generate employment, and mitigate greenhouse gas emissions.

Seen as a potential counter to China's Belt and Road Initiative (BRI), the IMEC holds strategic importance in deepening India's engagement with the Arabian peninsula. By fostering connectivity and strengthening political and strategic ties with regional nations, the corridor presents India with transformative opportunities to boost economic growth and trade connectivity with key regions.