The plan of India and the US to work together to advance the India-Middle East-Europe Economic Corridor (IMEEC) could give a shot in the arm for Indian foreign trade, which is growing at a rate much below potential and often turns to be a drag on its gross domestic product. The facility would help boost trade efficiency and reduce logistical costs. To be sure, the transport time between Asia and Europe is expected to come down significantly. The alternative route for global trade will also buttress supply chain security.
“The IMEEC is vital for bilateral interests, enhancing strategic supply chains and boosting security in economic, energy, and health sectors across India, Europe, and the Middle-East,” prime minister narendra Modi had said earlier in the week, after reviewing the project with French President Emmanuel Macron.
“We agreed to work together to help build one of the greatest trade routes in all of history. It will run from India to Israel to Italy and onward to the United States connecting our partners by ports, railways and undersea cables. Many many undersea cables,” US President Donald Trump said after a meeting with Modi in Washington. In his remarks Modi said Under the “IMEC” and “I2U2” initiative, India will work together on economic corridors and connectivity infrastructure. “It is a big development and a lot of money is going to be spent. We have already spent some and we are going to be spending a lot more in order to stay…
