The G20 Summit held in the capital of India will be remembered for a historic deal. This deal involves India, Europe, and the Middle East, also known as the Gulf countries. It is referred to as the India-Europe-Middle East Economic Corridor deal. It is considered a response to two of China’s projects, namely the Belt and Road Initiative (BRI) and the China-Pakistan Economic Corridor (CPEC), which is essentially a part of the BRI.
Currently, eight countries are part of this economic corridor. The deal offers countless benefits and aims to be completed within ten years. The significance of the Economic Corridor was emphasized by the President of the United States, Joe Biden, who stated, ‘One Earth, One Future, and One Family’ – a formula provided by Prime Minister Modi, for which he expressed gratitude.
Currently, the following countries are part of this deal: India, United Arab Emirates (UAE), Saudi Arabia, the European Union (EU), Italy, Germany, France, and the United States. The White House spokesperson recently hinted that some more countries may soon become part of this special economic deal, and some of these names might surprise you.
What Leaders Said:
- PM Modi: The agreement on the India-Europe-Middle East Economic Corridor is of utmost importance. The Indian government has prioritized connectivity. There is a connectivity gap in the Global South, and we aim to reduce it gradually, benefiting the next generation.
- Joe Biden: Prime Minister Modi, I thank you for this initiative. India has done an outstanding job. The ‘One Earth, One Family, and One Future’ suggestion came from Prime Minister Modi, and this is the focus of the G20 Summit. It is a remarkable initiative to connect the world, and it will be a game-changer, with the United States realizing this dream with the help of its allies. We will make it a reality within ten years.
- Ursula von der Leyen (Chief of the European Union): This is historic. It will also create a rail network that will be 40% faster. Modi’s vision is splendid. It is faster, cleaner, and shorter. For the first time, two continents will be connected. It will benefit small and poor countries.
- Emmanuel Macron (President of France): Everything has already been said about this. I promise in New Delhi that France will invest in this and provide excellent technology. This will lead to development in many countries because new infrastructure will be built.
Special Features of This Deal:
- The greatest benefits will be reaped by poor and middle-income countries in all three regions. According to John Finer, Deputy National Security Advisor of the USA, we won’t have to wait ten years to see the results of this deal. You will soon witness significant changes.
- According to a report, China has been consistently expanding its influence in Western Asia. China’s recent understanding between Saudi Arabia and Iran, alongside its initiatives in India, has taken the United States by surprise. This agreement has the support of powerful countries, including India.
- Now, the Middle East region will connect directly with India and Europe, not only through railways but also through ports. This will benefit everyone. Saudi Arabia’s Crown Prince Mohammed bin Salman (MBS) aims to transform the oil economy into a business-based one. He knows this will fulfill his Vision 2030.
- Deputy NSA Finer from the USA himself said, ‘This is a significant success, and we will realize it soon. People will understand more about this deal when its implementation begins, reducing tensions in every sector.’
- Recently, China has been trying to strengthen its presence in the UAE and Saudi Arabia, trying to weaken the United States and India in the region. Now, Saudi Crown Prince is once again signaling towards aligning with the United States. This is crucial because, after the pandemic, China’s economy is weakening day by day, with its growth rate decreasing every quarter.
- Economically speaking, every country involved in this deal is experiencing rapid development. Since the European Union is also part of it, it should be noted that at least 27 countries will be involved in this deal only through this union.
What Benefits India Will Reap:
- According to a report, China has been steadily increasing its influence in Western Asia. China’s recent agreement between Saudi Arabia and Iran has also caught India’s attention. This agreement might affect India’s interests in Western Asia.
- If the railway network between the Gulf and the Arabian Sea is connected through a maritime route, India will receive oil and gas more quickly and at a lower cost. This connectivity will benefit around 8 million Indians living in Gulf countries. Another significant aspect is that this deal will enhance India’s reputation as an infrastructure builder in the railway sector.
- The government believes that India’s connectivity with its western neighbors was affected due to Pakistan. This led to improved relations with several overland routes being blocked. For example, Chabahar (Iran), Bandar-e-Abbas (Iran), Duqm (Oman), Jeddah (Saudi Arabia), and Kuwait City. Dealing with this challenge, this deal will assist India’s railway projects.
