- Aim of the IGFA: To enhance bilateral relations and further strengthen relations between the two countries in the Ports, Maritime, and Logistics sectors.
- It also includes exploring further potential of future joint investment and collaboration for development of the IMEC.
- About IMEC
- It is a proposed transit network that aims at integration of Asia, Europe, and the Middle East.
- It consists of railroad, ship-to-rail networks (road and sea), and road transport routes (and networks)
- MoU was signed between India, European Union, France, Germany, Italy, Saudi Arabia, UAE, and the US at New Delhi G20 summit to establish it.
- It is a proposed transit network that aims at integration of Asia, Europe, and the Middle East.
- Significance of IMEC
- Enhancing Prosperity: Through an increased flow of energy and digital communications.
- The combined GDP of IMEC nations is about 40 percent of the world’s total GDP.
- It offers an alternative approach to China’s Belt and Road Initiative.
- It will make the global supply chain more resilient.
- Speed up trade between India and Europe and help India to increase strategic engagement with the Arab world.
- Enhancing Prosperity: Through an increased flow of energy and digital communications.
- Challenges: Complex geopolitics of the region (present Israel-Hamas crisis), lack of commitment regarding the financial cost, etc.