Cabinet approves Inter-Governmental Framework Agreement (IGFA) with UAE on India-Middle East Europe Economic Corridor (IMEC) | Current Affairs | Vision IAS
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    Cabinet approves Inter-Governmental Framework Agreement (IGFA) with UAE on India-Middle East Europe Economic Corridor (IMEC)

    Posted 14 Mar 2024

    Updated 27 Mar 2024

    2 min read

    • 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.

     

    • 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.

     

    • Challenges:  Complex geopolitics of the region (present Israel-Hamas crisis), lack of commitment regarding the financial cost, etc.

     

    • Tags :
    • IR
    • India-Middle East Europe Economic Corridor (IMEC)
    • IMEC
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