Will have rail, ship, road networks
NEW DELHI, Sept 9:
India along with the US and several major economies today announced an ambitious India-Middle East-Europe Economic Corridor with Prime Minister Narendra Modi emphasising on respect for sovereignty and territorial integrity of all nations while promoting connectivity initiatives.
The new economic corridor, which many see as an alternative to China’s Belt and Road Initiative, was jointly announced by the leaders of the US, India, Saudi Arabia, the United Arab Emirates, France, Germany, Italy and the European Union on the sidelines of the G20 summit.
The corridor comprises an eastern corridor connecting India to the Gulf region and a northern corridor connecting the Gulf region to Europe, the Ministry of External Affairs (MEA) said, adding it will include a railway and ship-rail transit network and road transport routes.
The countries signed the Memorandum of Understanding to establish the India-Middle East-Europe Economic Corridor which is expected to stimulate economic development through enhanced connectivity and economic integration between Asia, the Arabian Gulf, and Europe.
Modi and US President Joe Biden co-chaired the special event on Partnership for Global Infrastructure and Investment (PGII) and India-Middle East-Europe Economic Corridor (IMEC).
In his remarks at the event, Modi also stressed on promoting financial viability rather than debt-burden as well as on following all environmental guidelines in connectivity projects and said India does not limit connectivity to regional borders as it believes that connectivity can play a key role in strengthening mutual trust.
“The event aimed at unlocking greater investment for infrastructure development and strengthening connectivity in its various dimensions between India, Middle East and Europe,” the MEA said.
It said the PGII is a developmental initiative aimed at narrowing the infrastructure gap in developing countries as well as help towards accelerating progress on sustainable development goals globally.
The initiative will consist of two separate corridors — East Corridor connecting India to West Asia/Middle East and Northern Corridor connecting West Asia or Middle East to Europe.
It will include a rail line which upon completion will provide a reliable and cost effective cross-border ship-to-rail transit network to supplement the existing multi-modal transport routes enhancing transshipment of goods and services between South East Asia through India to West Asia or Middle East Europe.
Along the railway route, participants intend to enable the laying of cable for electricity and digital connectivity, as well as pipe for clean hydrogen export.
This corridor will secure regional supply chains, increase trade accessibility, improve trade facilitation, and support an increased emphasis on environmental social, and government impacts.
The launch of the initiative was hailed as “historic” by leaders of all participating nations, including the co-chairs Modi and Biden.
Besides Modi and Biden, European Commission President Ursula von der Leyen, French President Emmanuel Macron, German Chancellor Olaf Scholz, Italian Prime Minister Giorgia Meloni, Saudi Crown Prince Mohammed bin Salman bin Abdulaziz Al Saud and UAE President Mohammed bin Zayed Al Nahyan participated in the event.
“I am happy to co-chair this event with my friend President Biden,” Modi said and added that an important and historic partnership had been achieved with this corridor.
He said that in the times to come, it will become an effective medium for economic integration of India, the Middle East and Europe.
“It will give a new sustainable direction to connectivity and development in the entire world,” the prime minister said.
At the launch, Modi also said strong connectivity and infrastructure are fundamental basis for the development of human civilisation and India has always laid strong emphasis on this in its development journey.
“We are laying a strong foundation for a developed India,” he said.
“Through PGII (Partnership for Global Infrastructure and Investment), we can play a key role in reducing the infrastructure gap in Global South countries,” Modi said.
“India does not limit connectivity into regional borders. It has been India’s priority to increase connectivity with all regions. We believe that connectivity between various countries is not only a source of increasing trade but also for strengthening mutual trust,” he said.
It is important to keep in mind certain aspects while promoting connectivity initiatives such as adhering to international norms and rules, he said.
Modi stressed on respecting sovereignty and territorial integrity of all nations while promoting such initiatives.
“With such a major step on connectivity, we are sowing the seeds for future growth,” he said.
Later, in a post on X, Modi said, “Charting a journey of shared aspirations and dreams, the India-Middle East-Europe Economic Corridor promises to be a beacon of cooperation, innovation, and shared progress. As history unfolds, may this corridor be a testament to human endeavour and unity across continents.”
Modi and Biden called for accelerating investments to scale high-quality infrastructure projects and the development of economic corridors through PGII.
Biden said he was proud to announce that they have finalised a “historic agreement” for the new India-Middle East-Europe Economic Corridor.
“As key part of this corridor, we are investing in ships and rails, that extends from India to Europe connected by the UAE, Saudi Arabia, Jordan and Israel. It will make it far easier to trade. I want to thank sponsors and particularly Prime Minister Modi and (Saudi Crown Prince) Mohammed bin Salman,” he said.
Asserting that “this is a big deal”, Biden said the partnership was focused on building a sustainable, resilient infrastructure, making quality infrastructure investments, and creating a better future. (PTI)
Key points
War in Ukraine:
Asserting that “today’s era must not be of war”, the G20 countries called on all states to uphold the principles of international law, including territorial integrity and sovereignty and pitched for initiatives for “comprehensive, just, and durable peace in Ukraine”.
Countering Terrorism and Money Laundering:
The G20 stated, “We condemn terrorism in all its forms and manifestations, including those on the basis of xenophobia, racism and other forms of intolerance, or in the name of religion or belief, recognizing the commitment of all religions to peace. It constitutes one of the most serious threats to international peace and security.”
Economy & Climate:
G20 leaders called for a strong, sustainable, and inclusive growth as an answer to the uneven recovery the world has seen from the pandemic-infused plunder, and flagged trillions of dollar that countries would need to meet their climate goals and clean energy technologies.
They also called for reforming of international financial institutions, managing debt vulnerabilities of low and middle-income countries and the start of exchange of tax-relevant information on crypto assets by 2027.
The Declaration called for accelerating efforts to phase down unabated coal power, phase-out of inefficient fossil fuel subsidies and low-cost financing for energy transition of developing countries.
“We will protect the vulnerable, through promoting equitable growth and enhancing macroeconomic and financial stability.”
“With notable tightening in global financial conditions, which could worsen debt vulnerabilities, persistent inflation and geoeconomic tensions, the balance of risks remains tilted to the downside. We, therefore, reiterate the need for well-calibrated monetary, fiscal, financial, and structural policies to promote growth, reduce inequalities and maintain macroeconomic and financial stability,” it said.
Global Growth:
G20 leaders reiterated the need for well-calibrated monetary, fiscal, financial, and structural policies to promote growth, reduce inequalities and maintain macroeconomic and financial stability. They also stressed that central banks remain strongly committed to achieving price stability in line with their respective mandates. They welcomed the initial steps taken by the Financial Stability Board (FSB), Standard Setting Bodies (SSBs) and certain jurisdictions to examine what lessons can be learned from this recent banking turbulence and encourage them to advance their ongoing work. * Multilateral Development Banks:
Committed to delivering better, bigger and more effective multilateral development banks (MDBs), G20 leaders asked the financial institutions to leverage private capital through innovative financing models and new partnerships to make maximum development impact.
They also endorsed the roadmap for implementing the recommendations of the G20 Independent Review of MDBs Capital Adequacy Frameworks (CAFs) and called for its ambitious implementation, within MDBs’ own governance frameworks while safeguarding their long-term financial sustainability, robust credit ratings and preferred creditor status.
“We also call for a regular review of the progress of implementation on a rolling basis including through engaging with MDBs, subject experts and shareholders. We commend the MDBs for their progress in implementing the CAF recommendations, especially with respect to adapting definitions of risk appetite and financial innovation.”
Cross-border Payments:
“We reaffirm our commitment to the effective implementation of the prioritised actions for the next phase of the G20 Roadmap for Enhancing Cross-border Payments to achieve global targets for faster, cheaper, more transparent and inclusive cross-border payments by 2027 and welcome the initiatives undertaken by SSBs (Standard Setting Bodies) and international organisations in this direction.”
The leaders also welcomed discussions on the potential macro-financial implications arising from the introduction and adoption of Central Bank Digital Currencies (CBDCs), notably on cross-border payments as well as on the international monetary and financial system. * Education:
Recognising the importance of investment in supporting human capital development, the G20 committed to harness digital technologies to overcome digital divides for all learners and support educational institutions and teachers in keeping pace with emerging trends and technological advances
The G20 members supported promoting open, equitable and secure scientific collaboration and encourage mobility of students, scholars, researchers and scientists across research and higher education institutions.
“We are committed to inclusive, equitable, high-quality education and skills training for all, including for those in vulnerable situations. We recognize the importance of investment in supporting human capital development. We recognise the importance of foundational learning (literacy, numeracy, and socioemotional skills) as the primary building block for education and employment.”
Agriculture:
Stating that rising commodity prices are contributing to cost of living pressures, the G20 leaders committed to facilitate “open, fair, predictable, and rules-based” trade in agriculture, food and fertilisers and not impose export curbs in line with relevant WTO rules.
The member countries also committed to support developing countries’ efforts and capacities to address their food security challenges.
“We commit to enhance global food security and nutrition for all in line with the G20 Deccan High-Level Principles on Food Security and Nutrition 2023,” the New Delhi Leaders’ Declaration stated. (PTI)
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