New Delhi [India], September 9 : India, USA, UAE, Saudi Arabia, France, Germany, Italy and the European Union have signed a Memorandum of Understanding (MoU) to establish the India-Middle East-Europe Economic Corridor.
The corridor will encourage and provide impetus to economic development through enhanced connectivity and economic integration between Asia, West Asia, the Middle East and Europe, as per sources.
The India-Middle East-Europe Economic Corridor will consist of two separate corridors, the East corridor connecting India to West Asia/Middle East and the Northern corridor connecting West Asia/Middle East to Europe.
It will include a rail line, which upon completion, will provide a reliable and cost-effective cross-border ship-to-rail transit network to supplement the existing multi-modal transport routes enhancing transhipment of goods and services between South East Asia through India to West Asia/Middle East Europe.
Connectivity with countries of the region remains a key priority for India and is deeply rooted in Indian civilizational history. India has always stood to invest, cooperate and build connectivity as part of "One Earth, One Family, One Future".
It is also important to ensure that connectivity initiatives are consultative, transparent and participatory with respect for the sovereignty and territorial integrity of all countries. Principles of financial responsibility and economic viability must be followed to avoid the creation of unsustainable debt burdens to recipients and conforming to ecological and environmental standards.
The objective of development cooperation is that it would stand out as a symbol of an alternate approach, cement India's relationship with key actors in the region and beyond, and provide the industry and business with new opportunities to plug into international trade and logistics corridors.
According to sources, India stands to gain significantly as the corridor places the country firmly on the route of trade flows from South East Asia to the Gulf, West Asia and Europe, giving the country significant strategic and economic advantage, besides creating huge opportunities in the logistics and transportation sector.
It provides the country with a faster and cheaper transit option compared to what we have currently, giving a boost to our trade and exports. It can be developed as a green corridor enhancing green transition objectives, strengthening standing in the region and allowing companies to participate on an equal footing in infrastructure construction. The corridor will also secure supply chains, generate jobs and improve trade facilitation and accessibility, as per sources.
The MoU will create opportunities for the promotion of trade and economic cooperation between the signatories in the fields of connectivity, logistics and freight infrastructure, clean energy and hydrogen production and energy transmission infrastructure.
It will facilitate and enhance the infrastructure in the logistics and transportation sector and lead to the development of significant capacities in India, thereby enhancing our self-reliance. This is also in line with the vision of path-breaking initiatives such as Make in India, Sagarmala and Atmanirbhar Bharat.
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