Budget 2024: What is 'game-changing' India-Middle East-Europe corridor? Here's all you need to know

Image Source : PTI (FILE) Saudi Arabian Crown Prince Mohammed bin Salman Al Saud, left, and US President Joe Biden, right, shake hands next to Prime Minister Narendra Modi on the day of the G20 summit in New Delhi

The India-Middle East-Europe trade corridor, announced during the G20 Summit last year, will be a game-changer for India and the rest of the world, said finance minister Nirmala Sitharaman in her budget speech.

"Our vision for Viksit Bharat is one of prosperity in harmony with nature and providing opportunity to all to reach their potential," she said.

When was the project launched?

Prime Minister Narendra Modi announced the launch of the economic corridor in September 2023, which involves India, the UAE, Saudi Arabia, the European Union, France, Italy, Germany, and the US.

He said that the initiative will serve as a major medium for economic integration between India, West Asia, and Europe in the future. The corridor is expected to provide a new direction for connectivity and sustainable development globally.

What is the project about?

The rail and shipping corridor is part of the Partnership for Global Infrastructure Investment (PGII), a collaborative effort by G7 nations to fund infrastructure projects in developing nations. This initiative is seen as a response to China's Belt and Road Initiative. The project aims to facilitate increased trade among the participating countries, with a focus on energy products, and is considered one of the more ambitious efforts to counter China's extensive infrastructure programme, according to news agency Asosociated Press.

The corridor will involve a comprehensive infrastructure network, including a rail link, an electricity cable, a hydrogen pipeline, and a high-speed data cable. European Commission President Ursula von der Leyen referred to the project as "a green and digital bridge across continents and civilizations."

There are three major reasons for proposing this corridor, as per AP. Firstly, it is expected to boost prosperity among the involved countries by enhancing the flow of energy and digital communications. Secondly, the project aims to address the lack of infrastructure necessary for growth in lower- and middle-income nations. Lastly, it is anticipated that the corridor could contribute to reducing tensions and insecurity in the Middle East, providing a potential stabilising factor for the region.

(With AP inputs)