India eyes global trade hub status as IMEC links Asia, Gulf, Europe
IMEC holds vast promise — economically, strategically, and environmentally. For it to succeed, a clear governance framework, robust investment mechanisms, and coordinated international collaboration are vital. With the right blend of public and private sector engagement, IMEC could evolve from vision to reality — echoing the ancient trade routes with a 21st-century upgrade.
The India-Middle East-Europe Economic Corridor (IMEC), announced on September 9, 2023 at the G20 Summit in New Delhi, is a modern revival of the ancient trade routes that once positioned India as a global trade fulcrum.
As historian William Dalrymple notes in The Golden Road, India historically served as a pivotal conduit of East-West commerce, long before the “Silk Route” gained prominence. The modern IMEC aspires to reclaim that legacy — this time, supercharged by advanced technology, massive capital investment, and strong political will.
The corridor is part of the Partnership for Global Infrastructure and Investment (PGII) and includes signatories such as India, Saudi Arabia, UAE, the US, EU, France, Germany, and Italy, representing a combined GDP of $47 trillion and over 2.25 billion consumers, nearly 20% of global trade.
IMEC comprises two main footings — an eastern corridor connecting India to the Gulf and a northern corridor connecting the Gulf to Europe via an integrated rail network, enabling efficient ship-to-rail movement.
The corridor promises to cut logistics costs by up to 30% and transportation time by 40%, a major advantage for India, whose trade with Europe relies heavily on the Red Sea route.
The project enjoys backing from the G7, which reaffirmed support during its 2024 summit, recognizing IMEC’s potential to reshape regional trade flows.
India and the UAE are working on digital trade infrastructure, including linking national payment systems and establishing a Virtual Trade Corridor to streamline logistics. India’s RITES Ltd is spearheading digital integration through the MAITRI platform, which aims to unify Indian and UAE trade systems.
Saudi Arabia has pledged $20 billion for the initiative, and India is considering an undersea power transmission line connecting it with Saudi Arabia and the UAE. Major European companies like Maersk and Siemens Mobility are evaluating opportunities along the corridor.
From an energy perspective, IMEC could strengthen oil and gas trade, boost green hydrogen corridors, and connect with Europe’s existing hydrogen networks. The corridor also envisions an alternate global fiber-optic infrastructure for secure digital connectivity.
IMEC plays into wider de-risking strategies by Europe and the US to reduce dependence on China, aligning with policy frameworks like Germany’s China Strategy (2023) and France’s Indo-Pacific Strategy (2018). For India, it’s an opportunity to become a competitive manufacturing hub and attract cross-border investments.
Despite strong momentum, geopolitical risks loom large. The June 2025 Iranian airstrike near Haifa Port raised concerns about the corridor’s vulnerability to regional tensions. Additionally, the scale of funding — estimated at $600 billion — poses a major hurdle. Mobilization from multilateral banks, sovereign wealth funds, and private sector players will be critical.
Still, interest is growing. At a recent FICCI event in New Delhi, Indian businesses showed keen engagement in sectors like submarine cables, biofuels, green hydrogen, and digital infrastructure.
IMEC holds vast promise — economically, strategically, and environmentally. For it to succeed, a clear governance framework, robust investment mechanisms, and coordinated international collaboration are vital. With the right blend of public and private sector engagement, IMEC could evolve from vision to reality — echoing the ancient trade routes with a 21st-century upgrade.
