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New Delhi. India, the US, Saudi Arabia and the European Union on Saturday announced a multinational rail and port project on the sidelines of the G20 summit. This announcement is being considered very important for the purpose of countering China’s ambitious Belt and Road initiative. Prime Minister Narendra Modi announced this mega infrastructure deal with US President Joe Biden, Saudi Arabia’s Crown Prince Mohammed bin Salman and leaders of the European Union.China’s
Announcing the launch of this India-Middle East-Europe Economic Corridor and partnership program for investment in global infrastructure, Prime Minister Narendra Modi said, ‘I am very happy to preside over this event along with my friend President Joe Biden. Is. Today we all have seen an important and historic agreement being concluded. In the coming time, it will become an effective medium of economic integration between India, West Asia and Europe. This will give a new direction to the connectivity and sustainable development of the entire world.
‘This agreement is really a big deal’
Whereas US President Joe Biden said, ‘This is a big agreement. This is really a big thing. I want to thank Prime Minister Narendra Modi. One Earth, One Family, One Future is the focus of the G-20 summit. And in many ways this is also the focus of this partnership that we are talking about today.
Joe Biden also said, ‘Building sustainable, condition-establishing infrastructure, investing in quality infrastructure and building a better future. Today I want to highlight key ways the United States and our partners are working to make this a reality…’
On the other hand, Saudi Arabia’s Crown Prince Mohammed bin Salman said, ‘We hope to unify the announcements and initiatives regarding the economic project in this meeting. I want to thank those who worked with us to reach this foundational step in establishing this important economic corridor.
modern day masala route
The ambitious project aims to boost trade between India, the Middle East and Europe and establish a modern Spice Route to connect the regions that account for nearly a third of the global economy.
This plan will include data, rail, power and hydrogen pipeline projects. One of these proposed projects will connect railways and port facilities across the Middle East, including the UAE, Saudi Arabia, Jordan and Israel – thereby boosting trade between India and Europe by up to 40 percent.
India will be connected to the ports of the region through shipping lanes. Additionally, a US-backed proposal to accelerate land-trade routes between the Gulf Arab states and the Mediterranean Sea has also been discussed between Israel and the Gulf countries.
A game-changer project
The plan is expected to be a potential game changer for global trade, offering an alternative to China’s massive strategic infrastructure investments. President Joe Biden’s National Security Deputy Advisor John Finer had already told about this that the United States, India, Saudi Arabia, United Arab Emirates, European Union and some other countries are included in the proposed memorandum of understanding.
Finer said that first of all this corridor will increase prosperity between the countries concerned by increasing the flow of energy and digital communications. Second, the project will help address the lack of infrastructure needed for development in low- and middle-income countries. And thirdly, it can help reduce unrest and insecurity in the Middle East.
China’s concern will increase
America’s efforts regarding this project have come at a time when its old allies Saudi Arabia and UAE are growing closer to China. China has also recently boosted ties with the Middle East, helping to defuse tensions between Saudi Arabia and Iran earlier this year.
In such a situation, this India-Middle East-Europe corridor is being seen as an ambitious effort of Washington to counter China’s Belt and Road Initiative, which sought to connect more parts of the world with the country’s economy. Has been.
The announcement comes just a month before China’s Xi Jinping hosts global leaders for the third Belt and Road Forum in Beijing. Russia’s Vladimir Putin is also expected to attend this program.
In recent years the US has tried to counter President Xi Jinping’s ambitious infrastructure plan, which has financed hundreds of billions of dollars of projects in emerging markets. Recently, China’s BRI is facing many problems due to rising loan defaults and slowdown in investment.
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