Cabinet approves Inter-Governmental Framework Agreement (IGFA) with UAE on India-Middle East Europe Economic Corridor (IMEC) | Current Affairs | Vision IAS
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Cabinet approves Inter-Governmental Framework Agreement (IGFA) with UAE on India-Middle East Europe Economic Corridor (IMEC)

Posted 14 Mar 2024

Updated 27 Mar 2024

2 min read

  • Aim of the IGFA: To enhance bilateral relations and further strengthen relations between the two countries in the Ports, Maritime, and Logistics sectors.
    • It also includes exploring further potential of future joint investment and collaboration for development of the IMEC.

 

  • About IMEC
    • It is a proposed transit network that aims at integration of Asia, Europe, and the Middle East.
      • It consists of railroad, ship-to-rail networks (road and sea), and road transport routes (and networks)
    • MoU was signed between India, European Union, France, Germany, Italy, Saudi Arabia, UAE, and the US at New Delhi G20 summit to establish it.

 

  • Significance of IMEC
    • Enhancing Prosperity: Through an increased flow of energy and digital communications.
      • The combined GDP of IMEC nations is about 40 percent of the world’s total GDP.
    • It offers an alternative approach to China’s Belt and Road Initiative.
    • It will make the global supply chain more resilient.
    • Speed up trade between India and Europe and help India to increase strategic engagement with the Arab world.

 

  • Challenges:  Complex geopolitics of the region (present Israel-Hamas crisis), lack of commitment regarding the financial cost, etc.

 

  • Tags :
  • IR
  • India-Middle East Europe Economic Corridor (IMEC)
  • IMEC
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