Why in news?
The IMEC project continues to face geopolitical challenges due to the ongoing Israel-Hamas conflict and broader instability in the Middle East, which has delayed progress, especially on the corridor’s Middle East-Europe link that hinges on cooperation between Jordan and Israel.
 
Key highlights of IMEC include:

• It consists of two main corridors: the Eastern Corridor (India to Gulf) and the Northern Corridor (Gulf to Europe).
• It seeks to provide an alternative to China’s Belt and Road Initiative by offering transparent, sustainable, and debt-free infrastructure without compromising sovereignty.
• IMEC is expected to reduce logistics costs by up to 30% and transportation time by 40% compared to the Suez Canal route, boosting India’s export competitiveness globally.
• The corridor integrates transportation, energy, and digital pillars, including rail and maritime networks, energy pipelines and grids, and undersea fiber-optic cables, enhancing trade, energy security, and data connectivity.
• It aligns with India’s renewable energy goals, linking solar and green hydrogen power from the Middle East to India and Europe.
• The corridor has the potential to generate $21.85 billion in additional Indian exports annually and $5.4 billion in annual savings on Asia-Europe trade.
• IMEC supports regional connectivity with possible expansion to Qatar, Oman, Egypt, Türkiye, and Iraq.

Challenges of the IMEC project:

• Geopolitical instability due to conflicts in the Middle East, especially the Israel-Palestine crisis and regional rivalries.
• Infrastructure and funding hurdles, including the need for massive investment in ports, railways, digital networks, and energy systems, with bureaucratic and regulatory delays.
• Multinational coordination challenges as diverse countries with differing political priorities and policies participate.
• Security risks including terrorism, piracy, cyber threats, and insurance cost spikes due to regional conflicts.

Overall, IMEC represents a forward-looking global infrastructure partnership aimed at fostering economic growth, connectivity, and energy transition across multiple continents with strategic and economic significance for India, the Middle East, Europe, and the US.

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