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During the 18th edition of the G20 summit, held in New Delhi, a Memorandum of Understanding (MoU) was signed between India, the US, Saudi Arabia, the European Union, the UAE, France, Germany and Italy to set up the India – Middle East – Europe Economic Corridor (IMEC).
This project is being developed as a network of transport corridors (including railway lines and sea lanes).
It also robust the economic growth among Asia, the Arabian Gulf, and Europe.
The IMEC is also a part of the Partnership for Global Infrastructure Investment (PGII).
PGII refers to the Partnership for Global Infrastructure Investment.
It was announced in June 2021 during the G7 summit, held in the UK.
G7 countries: The United Kingdom (UK), the United States (US), Canada, France, Germany, Italy, Japan, and the European Union (EU).
In the 2022 G7 summit, held in Germany, a joint initiative was launched by the PGII to help fund infrastructure projects in developing countries through private and public investments.
During the 2022 G7 summit, the United States President, Joe Biden also announced to mobilize nearly $600 billion from the G7 by 2027 to invest in critical infrastructure.
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PGII (Partnership for Global Infrastructure Investment) |
CBRI (China’s Belt and Road Initiative (BRI)) |
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Launched |
2021 |
2013 |
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Focus |
It focuses on climate action and clean energy |
It focuses on Coal-fired plants, solar, hydro, and wind energy projects |
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Funding |
It is funded by grants and investments. |
While China extends large, low-interest loans to countries |
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Transparency |
It emphasized ‘transparency’ |
No Transparency |
It is an infrastructure development project.
Members: India, Saudi Arabia, the United Arab Emirates, France, Germany, Italy, the United States, and the European Union
This corridor will make trade 40% faster between India and Europe.
This project has been divided into two separate corridors:
East Corridor: This corridor will create connectivity between India and West Asia/Middle East.
Northern Corridor: It will create connectivity between West Asia/Middle East and Europe.
In 2013, China started the Belt and Road Initiative (BRI) to revive the ancient trade routes crossing to and from China–from Rome in Europe to East Asia.
Under this, the Chinese government provides infrastructure loans to various countries at low-interest rates.
This strategy helped China to mark its footprints at a global level.
As per the World Bank Report 2019, out of the 43 corridor economies, 12 could face a situation where debts were not sustainable, which led to handing over their public assets to China or foreign contractors.
However, India has opposed the BRI as it included the China-Pakistan Economic Corridor, as a corridor connecting Kashgar in China with the Gwadar port in Pakistan via Pakistan-occupied Kashmir.
It helps to enhance food security, regional supply chains, trade accessibility, environmental considerations, economic cohesion, and job creation.
It also reduces greenhouse gas emissions.
Robust the cross-border ship-to-rail transit network between India, the UAE, Saudi Arabia, Jordan, Israel, and Europe.
It also enhances global commerce and digital communication.
