The nations involved in the proposed IMEC collectively account for nearly half of global GDP, totalling $47 trillion. Therefore, to fully unlock the benefits of this multilateral initiative of immense geopolitical significance, they must work towards resolving security concerns and harmonising trading regulations, writes Manish Pant.
Experts often refer to the proposed India-Middle East-Europe Economic Corridor (IMEC) as the New Silk Road. However, that name is already associated with China’s transnational economic corridor, the Belt and Road Initiative (BRI). A more fitting description would be the New Spice Route—reviving a historic trade artery that once positioned India as a dominant force in global commerce, controlling an estimated 25–33 per cent of global wealth. Despite shifting control to Arab and later European traders, the route remained vital to international trade until new pathways emerged and colonisation reshaped global commerce. IMEC seeks to revitalise this legacy, positioning India as the central driver of its expansion across the Middle East and Europe.
As the fastest-growing major economy, India aims to leverage IMEC’s potential. A 2023 study by ANZ India projects India’s GDP to exceed $20 trillion by 2040, achieving developed economy status. Addressing the IMEC Conclave in New Delhi, Piyush Vedprakash Goyal, Union Minister for Commerce & Industry, declared, “We will not only be linking trade but also connecting civilisations and cultures, knitting together Southeast Asia, the Middle East, and Central and Eastern Europe. IMEC revitalises the immense potential of nations along its route and can emerge as a defining global axis of the 21st century.”
The partner countries have expressed their commitment to the corridor. Speaking to INFRASTRUCTURE TODAY on a sweltering May afternoon in New Delhi, Reuven Azar, Israel’s Ambassador to India, highlighted India’s geographic proximity to West Asia and the necessity for robust infrastructure and seamless connectivity to support efficient trade. “IMEC holds immense promise for the Middle East, as India’s growing economic role strengthens regional trade flows. While sea transport remains the most cost-effective option, certain goods, such as those involving the Houthis [in Yemen], make alternative pathways necessary.” Operating through its outfit Ansarallah, the Houthi movement has severely disrupted merchant shipping in the Red Sea and Gulf of Aden. In March this year, the US State Department designated Ansarallah as a Foreign Terrorist Organisation. Against this backdrop, IMEC aims to establish a stable, trade-friendly corridor linking the UAE, Saudi Arabia, Jordan, Israel, and Europe..
IMEC is designed as an integrated
transport network, incorporating rail, road, and sea routes to streamline logistics, reduce costs, and foster economic cooperation. It is expected to enhance employment, support infrastructure expansion, and contribute to sustainability by reducing greenhouse gas emissions through optimised transport systems. Calling it a partnership of equals that seeks to bolster synergy, connectivity, and inclusiveness, Goyal states, “This, in a way, is an extension of India’s global outreach, our growing relevance among nations. It will bring down logistics costs by up to 30 per cent, reduce transportation time by 40 per cent, and create seamless trade linkages across continents.”
The DHL white paper China Plus X: The New Global Supply Chain highlights the shift toward multi-shoring, encouraging businesses to diversify production beyond China for resilience. RS Subramanian, Vice President for South Asia, DHL Express—a division of global logistics conglomerate DHL Group—explains “As companies seek to diversify their manufacturing beyond traditional hubs, India emerges as a strategic alternative. The country’s large workforce, improving infrastructure, and government initiatives like Make in India and One District One Product position the country well to capitalise on this shift.”
The IMEC project was officially established at the 2023 G20 Summit in New Delhi under the Partnership for Global Infrastructure and Investment, a global initiative focused on meeting infrastructure needs in low- and middle-income countries. Supported by India, the US, Saudi Arabia, UAE, the EU, Italy, France, and Germany, IMEC will feature a multimodal transport network across two corridors. The eastern corridor will link India to the Arabian Peninsula, while the northern corridor will connect the Gulf to Europe. The project also includes an electricity cable, a hydrogen pipeline, and a high-speed data cable, ensuring enhanced trade facilitation, energy efficiency and digital connectivity.
“Equally important is the ripple effect this will create across infrastructure and employment. The corridor is expected to spur large-scale investments in ports, railways, and logistics hubs across regions, particularly in Indian states like Gujarat, Maharashtra, and Andhra Pradesh. It’s estimated that over 2 million jobs could be generated by 2030 across logistics, infrastructure, IT, and support services,” states Ramanathan Rajamani, CEO, AISATS, an Air India and SATS joint venture.
IMEC will integrate major ports across India, the Middle East, and Europe, strengthening intercontinental connectivity. In India, it will link Mundra, Kandla, and Jawaharlal Nehru Port Authority. In the Middle East, key ports such as Fujairah, Jebel Ali, and Abu Dhabi in the UAE, along with Dammam and Ras Al Khair in Saudi Arabia, will be part of the network. A dedicated railway line will connect Fujairah in the UAE to Haifa in Israel via Saudi Arabia and Jordan. In Europe, Piraeus in Greece, Messina in Italy, and Marseille in France will serve as vital trade entry points, ensuring seamless cargo movement and reinforcing supply chain resilience.
Countering BRI
IMEC is widely seen as a strategic counterweight to China’s BRI, limiting Beijing’s Eurasian influence by reinforcing economic and geopolitical partnerships aligned with US interests. The corridor strengthens global commerce while enabling the US to reaffirm its presence and reassure traditional allies amid shifting power dynamics. Steven A Altman, Adjunct Assistant Professor, New York University Stern School of Business, supports this view: “IMEC is a rare example of a project initiated under former President [Joe] Biden that President [Donald] Trump has embraced wholeheartedly. It aligns with US interests in three main areas: geopolitical competition with China, supporting a more integrated and peaceful Middle East—especially ties between Saudi Arabia and Israel—and, of course, stronger US cooperation with India itself.” During Prime Minister Narendra Modi’s February visit to the US, he and President Donald Trump reaffirmed their commitment to the project.
Since 2020, a series of geopolitical and economic disruptions—including China’s prolonged Covid-induced lockdowns, Russia’s military action in Ukraine, and the Israel-Hamas war—have compelled nations to rethink global trade routes. Ambassador Azar emphasises that any major project must rest on solid geopolitical foundations, with security being paramount. “Proposed corridors through Afghanistan, Pakistan, or Iran lack the stability required for reliable international trade, making investing in infrastructure risky. In contrast, IMEC benefits from strong security coordination among participating nations, bolstered by the Abraham Accords and US CENTCOM (Central Command) oversight, ensuring smooth and secure trade operations.”
As a rising economic and military power, India must safeguard its commercial interests in the region. The successful military strikes on terrorist launch pads deep inside Pakistani territory under Operation Sindoor not only sent shockwaves across the globe—taking both friends and foes by surprise—but also reinforced India’s stature as a military power and a rising leader of the Global South. IMEC dismantles Pakistan’s historical veto over India’s westward connectivity, unlocking new economic and geopolitical pathways. It deepens India’s engagement with the Arabian Peninsula, fostering strategic ties and regional stability. Sudeep Mehrotra, CEO of Asset Management, Welspun One, a leading logistics park developer, underscores its significance: “IMEC will significantly reduce transit time between India and Europe and diversify supply chains away from chokepoints like the Suez Canal. It creates a viable alternative to China’s BRI, anchored in transparency and multi-party governance. For India, it could mean greater export competitiveness, increased FDI in logistics, and deeper trade ties with West Asia and Europe, turning India from a regional to a transcontinental logistics hub.” By promoting intra-regional connectivity and peace, IMEC sets a precedent for infrastructure-led diplomacy, extending its model to Africa for broader development.
Devansh Jain, Executive Director of INOXGFL Group, is leading a $3 billion expansion at the Noida-headquartered chemicals-to-renewables conglomerate. He views IMEC as a vital opportunity for Indian enterprises amid ongoing global trade realignments. “As a group, our goal is straightforward—to keep building and scaling our businesses. We currently have seven factories under construction, spanning energy storage, solar, wind, and chemicals. Six of these plants are in India, with one located in the Middle East to support regional operations.”
India is also reviving its shipbuilding industry through strategic financial initiatives, including the `180.9 billion Shipbuilding Financial Assistance Policy and the Rs.250 billion Maritime Development Fund. By significantly reducing transit times and opening new trade corridors, IMEC is expected to drive growth in shipbuilding and repairs. Rear Admiral V K Saxena, CEO, Swan Defence and Heavy Industries, which owns India’s largest shipyard, states, “We are fully aligned with the government’s maritime vision. Our state-of-the-art infrastructure positions us to deliver advanced shipbuilding and repair solutions
that meet global standards. IMEC not only opens new opportunities for Indian shipyards but also reinforces our shared vision to establish India as a global hub for maritime innovation and excellence.”
The micro, small, and medium enterprise (MSME) sector also stands to benefit. As of March 2025, 62 million registered MSMEs employed over 250 million people, fostering entrepreneurship, particularly in semi-urban and rural areas, according to government data. Historically, MSMEs have powered economic transformations in nations such as Japan, Germany, South Korea, and China. DHL’s Subramanian reiterates this optimism: “We are optimistic about the IMEC, which will benefit Indian MSMEs. We believe they will be a key contributor to the vision of Viksit Bharat (developed India) in 2047.”
With IMEC unlocking new global opportunities, India is well-positioned to ensure local entrepreneurship thrives, securing a stronger foothold in international trade. Altman, who also serves as Director of the DHL Initiative on Globalization at NYU Stern’s Center for the Future of Management, substantiates this argument: “The DHL Trade Atlas 2025 report forecasts that India will achieve the third-largest absolute amount of trade growth over the next five years, behind only China and the US. Infrastructure expansion is especially important for growing India’s participation in high-end manufacturing, which often requires intricate multi-country value chains that depend on the very efficient movement of goods into and out of a country.”
Global Headwinds
Despite its promise, a multilateral initiative of IMEC’s scale will inevitably face implementation challenges. Geopolitical instability in the Middle East—marked by the Israel-Hamas conflict, tensions with Iran, and regional rivalries—could disrupt progress. “Geopolitical rivalries—particularly between Saudi Arabia and the UAE on one side, and Iran on the other—along with Turkey’s exclusion and competition from China’s BRI, pose significant challenges to cooperation. Regulatory fragmentation across nations risks inconsistent tariffs and logistics standards, delaying execution. Security concerns, including Middle East instability and maritime disputes in contested waters, amplify risks,” warns Sonam Chandwani, Managing Partner, KS Legal, a Mumbai-based law firm. While choosing to remain cautiously optimistic, Altman acknowledges that political and security developments in the Middle East—particularly the Israel-Hamas war—have significantly delayed progress. “In my view, the geopolitical and economic logic favouring IMEC has only become stronger since the project was initially conceived. But substantial risks remain, and it will take sustained high-level commitment across many countries for its potential to ultimately become a reality,” he adds.
Funding and coordination are equally critical, as massive capital investment is required for rail, port, and digital infrastructure, while aligning priorities across participating nations adds complexity. Since 2013, China’s BRI has reportedly amassed $1.18 trillion in financial investments and contractual cooperation across 150 participating countries. Regulatory and technical hurdles—such as harmonising customs procedures, transport standards, and legal frameworks—require extensive policy coordination. Chandwani adds, “Financially, the absence of a dedicated funding pool and lack of clarity regarding the private sector’s role deter investment. Finally, environmental compliance for green hydrogen pipelines demands rigorous standards, which could clash with local policies. Without robust legal frameworks and diplomatic alignment, these challenges could derail IMEC’s transformative potential, undermining its economic promise.” Environmental and social risks, including potential degradation and displacement, must be carefully
managed through sustainability safeguards and community engagement to ensure long-term viability.
Despite these concerns, stakeholders remain confident that economic cooperation and political alignment will ensure IMEC’s viability. Azar affirms that the collective financial strength of stakeholders will help overcome any obstacles. “IMEC connects thriving economies—including the US, India, the UAE, Saudi Arabia, and Israel—fostering diverse economic collaborations beyond just trade. Saudi Arabia, for instance, is a major energy exporter, while Jordan serves as a cost-effective storage hub for merchandise. With these advantages, IMEC integrates commercial interests across the region, supported by the political stability of its member nations, increasing feasibility and long-term success.” He also dismisses concerns over prohibitive infrastructure investment requirements. “Most essential networks, including railways in Israel, Saudi Arabia, and the UAE, already exist. A missing 200 km railway link in Jordan remains a key gap, but its construction is feasible and well within the capabilities of Indian firms. While logistical coordination among governments is necessary to ensure seamless trade flows, financial investment in the corridor is relatively moderate.”
Manish R Sharma, Partner & Leader of Infrastructure, Transport and Logistics at PwC India, shares this view. In a recent PwC-Vishwamitra Foundation report, The India-Middle East-Europe Economic Corridor: Paving a New Path for Global Trade, he notes, “Both public and private sector financing is essential for fulfilling the investment needs in such infrastructure projects. Mechanisms need to be established to efficiently attract funding from different sources and allocate it efficiently for maximum benefits and returns. There are several mechanisms available currently which can be used to attract funding for infrastructure development.” These include establishing public-private partnerships (PPPs), securing international funding, and leveraging financial instruments such as bonds, guarantees, and equity funds to raise capital. Strategic resource allocation to prioritise projects with the highest economic impact will also be critical. The report also advocates a four-pillared development approach—encompassing multimodal transport, institutional alignment, ease of doing business, and capital mobilisation—to streamline trade across IMEC nations.
Most importantly, as Mehrotra of Welspun One points out, countries like India are committed to making IMEC a success. The groundwork has already been laid through infrastructure creation initiatives such as the PM Gati Shakti National Master Plan and the National Logistics Policy. “India’s expanding port capacity, DFCs (Dedicated Freight Corridors), and industrial corridors are aligned with IMEC’s long-term vision. However, inter-ministerial coordination, single-window clearances for transnational logistics, and incentivising private investment in infratech will be key to unlocking IMEC’s full potential.” This is already evident in efforts to close critical gaps. For instance, the under-construction ?
7.6 billion Vadhavan deep-sea port near Navi Mumbai will be connected to the Western Dedicated Freight Corridor.
Recipe for Success
Realising IMEC’s full potential requires sustained diplomatic engagement, institutional collaboration, and private sector investment, supported by transparent governance and timely execution. Global financial institutions must mobilise funding and expertise, while stakeholders develop a robust framework for arbitration and multilateral cooperation to ensure long-term success. Chandwani recommends a binding IMEC Charter to enforce standardised tariffs, environmental compliance, and security protocols across participating nations, supported by a centralised arbitration tribunal for impartial dispute resolution. “Regular summits, facilitated by a permanent IMEC Secretariat, would align stakeholders and preempt conflicts. Private-sector engagement through PPP contracts with clear dispute-resolution clauses is vital.” This framework, prioritising transparency and enforceability, would mitigate potential discord, foster trust, and ensure project continuity across complex and volatile regions.
Mehrotra maintains that to make IMEC viable, stakeholders must go beyond physical infrastructure. “What’s needed is a corridor mindset, integrating digital trade, seamless customs, energy cooperation, and skilled human capital exchange. India should use this opportunity to champion green corridors and set sustainability benchmarks. Moreover, IMEC must be aligned with India’s port-led development.” Leveraging technologies such as AI-driven logistics, blockchain for supply chain transparency, and renewable energy integration will be key to ensuring the corridor remains future-proof and resilient.
India’s role as the anchor of IMEC stems from its reputation as a more trusted growth partner than China. This perception is rooted in Beijing’s weaponisation of BRI through debt-trap diplomacy, dual-use infrastructure, and economic coercion, fostering dependency among participating nations. By controlling critical supply chains and shaping domestic policies, China has expanded its strategic reach. Minister Goyal states unequivocally:
“The strength of IMEC lies in its respect for the sovereignty of every nation. It does not impose a single vision, nor does it seek to create an economic union or dominate any region. In contrast, BRI is increasingly recognised as a political tool aimed at controlling the economic future of certain areas.”
This sovereignty-first approach strengthens IMEC’s credibility as a viable alternative to politically driven infrastructure projects, reinforcing global trust in its multilateral framework. Azar underscores its resilience, highlighting how it adds a crucial alternative route to existing maritime trade networks, complementing pathways such as the Suez Canal and international shipping lines around Africa. “In today’s interconnected economy, shipping firms operate across multiple nations, employing global crews and navigating diverse regulatory frameworks. By providing a stable, high-connectivity corridor through strategically positioned countries, IMEC reinforces resilience within international trade networks, facilitating smoother commerce across regions.”
Grégory Goba Blé, Director, MOVIN Express—an InterGlobe Enterprises and UPS Group B2B logistics joint venture for the Indian market—views IMEC as a transformative shift in global trade, driving cross-border logistics expansion and future-ready solutions. “In under three years, we have established a robust foundation with 16 air and ground hubs across India’s key commercial centres. IMEC now empowers us to scale that momentum globally. With India’s diplomatic leadership and a thriving diaspora driving demand, we are uniquely positioned to support businesses with speed, reliability, and reach.”
This strategy not only meets the demands of an increasingly multipolar world but also places India at the forefront, shaping multilateral cooperation and global prosperity on a foundation of mutual trust.
IMEC: A Geopolitical Game-Changer
Revolutionising Trade Routes – IMEC accelerates cargo movement by integrating rail, sea, and road networks, reducing dependency on the congested Suez Canal.
Strengthening Regional Connectivity – India, the Middle East, and Europe gain seamless trade integration, fostering economic growth and geopolitical cooperation.
Counterbalancing China’s BRI – A transparent, rule-based alternative, IMEC enhances trade security, mitigating risks associated with debt diplomacy.
Advancing Sustainable Infrastructure – Green hydrogen pipelines, digital trade networks, and renewable energy transport make IMEC a clean logistics powerhouse
Enhancing Geopolitical Influence – India, the EU, and the Gulf nations bolster their global economic leadership, reshaping strategic alliances.
Source: IT Research
Development Pillar 1: Multimodal Transport
Infrastructure Planning – A regional master plan integrating roads, railways, and ports to enhance seamless cargo movement, ensuring efficient trade corridors.
Technological Advancements – Smart logistics, real-time tracking, and automated systems to improve transportation efficiency, reduce turnaround times, and enable precise monitoring of goods.
Integrating Logistics – Coordinated supply chains, optimised storage, and efficient distribution networks to reduce delays and maximise resource utilisation.
Source: PwC India-Vishwamitra Research Foundation
Development Pillar 2: Strategies for Institutional Alignment
Collaborative Governance
Intergovernmental committees to ensure cross-border cooperation, enabling stakeholder participation, transparency, and strategic decision-making.
Regulatory Frameworks
Harmonised customs, immigration, and transport policies for streamlining cross-border trade, improving efficiency and reducing bottlenecks.
Capacity Building
Strengthening institutions through targeted training to enhance economic policy management, public administration, and operational efficiency.
Stakeholder Engagement
Involving local communities, private entities, and global organisations to foster trust, transparency, and alignment with regional priorities.
Source: PwC India-Vishwamitra Research Foundation
Development Pillar 3: Towards Ease of Doing Business
Simplifying Regulatory Norms – Integrated customs procedures reduce bureaucratic barriers, ensuring efficient trade flows across borders.
Policy Harmonisation – Aligned regulations and policies streamline operations, enabling seamless goods movement across regions.
Digital Solutions – Blockchain and real-time data sharing enhance transparency, accuracy, and efficiency in global supply chains.
Investment Climate – Robust legal frameworks and swift dispute resolution foster private sector confidence in infrastructure investments.
Market Access – Free trade agreements unlock new economic opportunities, driving business expansion and competitiveness.
Source: PwC India-Vishwamitra Research Foundation
Development Pillar 4: Mobilising Capital
Public-Private Partnerships Collaborative financing to leverage private expertise for developing critical infrastructure.
International Funding
Capital and technical expertise from global financial institutions for supporting large-scale infrastructure projects.
Financial Instruments
Innovative funding tools like bonds, guarantees, and equity funds to attract investment and mitigate risks.
Resource Allocation
Prioritising high-impact projects to ensure efficient investment, enhancing connectivity and economic growth.