New Delhi, India — Major G20 partners are set to unveil ambitious plans on Saturday to enhance trade among India, the Middle East, and Europe. This modern-day Spice Route aims to integrate regions that represent about a third of the global economy.
Washington, Saudi Arabia, the EU, the United Arab Emirates, and other nations plan to sign an agreement on the sidelines of the G20 summit in New Delhi. This agreement presents an alternative to China’s extensive strategic infrastructure investments.
Officials informed AFP that the plan encompasses a range of data, rail, electricity, and hydrogen pipeline projects.
A proposed initiative seeks to connect railway and port facilities throughout the Middle East, including the United Arab Emirates, Saudi Arabia, Jordan, and Israel. This could potentially accelerate trade between India and Europe by up to 40 percent.
European Union leaders are anticipated to describe “The India – Middle East – Europe economic corridor” as “nothing less than historic” when they unveil the plan details later on Saturday.
While this agreement is poised to stimulate trade, it also represents a significant stride toward Arab Gulf states normalizing relations with Israel.
Washington is actively encouraging Riyadh, a key oil producer and security ally, to establish formal relations with Israel, following decades of tension and closed borders.
US involvement might also aid in repairing the strained relationship between Riyadh and Washington, which deteriorated after the US-Iran nuclear deal and the 2018 assassination of journalist Jamal Khashoggi.
Jon Finer, US Deputy National Security Advisor, emphasized the initiative’s “enormous potential.” He noted that the public announcement follows “months of careful, quiet diplomacy, both bilaterally and in multilateral settings.”
The Europe-to-India project is in its preliminary phase, with stakeholders exploring optimal ways to connect India’s vast 1.4 billion population and rapidly expanding economy with western markets.
As per details shared with AFP, the India – Middle East – Europe economic corridor aims to develop infrastructure to facilitate the production and transportation of “green hydrogen.” Additionally, it plans to enhance telecommunications and data transfers via a new undersea cable connecting the region.
Michael Kugelman, Director of the South Asia Institute at The Wilson Center, believes this plan could be a substantial counter to China’s renowned Belt and Road Initiative (BRI). The BRI has expanded Chinese influence and commerce globally.
“If finalized, it would be a game changer, enhancing connectivity between India and the Middle East and aiming to counter the BRI,” Kugelman shared on X, previously known as Twitter.