India-Middle East-Europe Economic Corridor Announced

Though India and the United Arab Emirates (UAE) established diplomatic relations only in 1972, Indians depending on the Arabian Peninsula historically dates back even further. However, modern-day India-UAE relations commenced with the UAE opening its Embassy in India in 1972. India opened its Embassy in UAE the following year. Over the decades, UAE, especially the cities like Dubai, has outpaced India with its pace of growth economically and otherwise. However, India is catching up. Over the past decade, things have taken a dramatic turn in India, and the country has gained momentum in its economic, digital, and infrastructure growth. This has further strengthened bilateral relationships and trade connections between India and the UAE.

The 2023 G20 New Delhi summit has taken this bilateral relationship to a whole new level with the announcement of the ‘India-Middle East-Europe Economic Corridor. India, the US, the UAE, Saudi Arabia, and the European Union (EU) signed this ambitious plan to reshape the trade route between the Gulf, Europe, and South Asia by connecting them by rail and sea.

The plan is to establish a shipping route between India and Saudi Arabia, followed by a rail link to the UAE and likely to Jordan. The shipment will move via sea and rail to Turkey. The proposed corridor will consist of two separate corridors the Eastern Corridor, which will connect India to West Asia/Middle East, and the Northern Corridor, which will connect West Asia/ Middle East to Europe. Upon completion, it will include a rail line that will provide a reliable and cost-effective cross-border ship to rail transit network to supplement the existing multi-modal transport routes while also enhancing the transshipment of goods and services between South East Asia through India to West Asia/ Middle East Europe. Undoubtedly, these direct trade routes will provide business ecosystems in India and the UAE with a whole new world of opportunities.