A high-level Indian delegation concluded talks with UAE focusing on developing major shipping hubs.
- Earlier, India-UAE Inter-Governmental Framework Agreement (IGFA) on IMEC was approved for exploring further potential of future joint investment and collaboration.
About IMEC
- It is a proposed transit network that aims at integration of Asia, Middle East and Europe.
- It consists of railroad, ship-to-rail and road transport routes and networks.
- MoU was signed between India, European Union, France, Germany, Italy, Saudi Arabia, UAE, and the USA at the New Delhi G20 summit (2023) to establish it.
Significance of IMEC
- It serves as an acknowledgment, on the part of US and EU, of the rising non-Western powers.
- It will aid in increased flow of energy and digital communications.
- Speed up trade between India and Europe and help India to increase strategic engagement with the Arab world.
- It will make the global supply chain more resilient.
- It offers an alternative approach to China’s Belt and Road Initiative.
Challenges
- Complex geopolitics of the region (Israel-Hamas-Iran crisis).
- Lack of official diplomatic ties between Saudi Arabia and Israel.
- Lack of Financial commitments.