India-Middle East-Europe Economic Corridor (IMEC)
Prime Minister is engaging in discussions with Saudi PM and Crown Prince Mohammed Bin Salman during his visit to Saudi Arabia to advance the India-Middle East-Europe Economic Corridor (IMEC).
Key Objectives of IMEC
- IMEC was launched during the G20 Summit in Delhi in September 2023.
- It aims to establish a reliable and cost-effective cross-border ship-to-rail transit network.
- The corridor plans to enhance trade among India, UAE, Saudi Arabia, Jordan, Israel, and Europe.
IMEC is being positioned as the potential "new Silk Route of the 21st century" by PM Modi.
Recent Developments
- The IMEC discussions, previously slowed down, are now receiving renewed attention.
- India and the European Union committed to the corridor's potential in February 2023.
- India and Saudi Arabia are focusing on regional connectivity, logistics, clean energy, and data cooperation.
Strategic Initiatives
- A Memorandum of Understanding (MoU) was signed between India and Saudi Arabia in 2023 to connect the electricity grid.
- There is potential for an agreement on clean hydrogen.
Bilateral Relations and Trade
- This is PM Modi's third visit to Saudi Arabia after 2016 and 2019.
- Trade between India and Saudi Arabia amounted to nearly $43 billion in 2023-24.
- India is Saudi Arabia’s second-largest trade partner, while Saudi Arabia is India's fifth-largest trade partner.
- Saudi Arabia supplied 14.3% of India's crude oil imports and was the third-largest source of LPG, accounting for almost 18% of LPG shipments to India.
Future Prospects
- Further strategic linkages are being targeted to enhance India’s energy security.
- MoUs are expected to be signed in the fields of space, health, science, culture, and advanced technologies.
