NEW DELHI: The newly introduced Saudi-backed India-Middle East-Europe Economic Corridor is more likely to be a “game changer” for New Delhi, offering unprecedented entry to world markets, specialists say.

A deal establishing the IMEC was signed by Saudi Arabia, the US, the EU, India, the UAE, France, Germany, and Italy final week, and introduced by Crown Prince Mohammed bin Salman on the sidelines of the G20 Summit in New Delhi.

The new 4,800-km commerce route is meant to stimulate financial improvement and integration. It contains two separate routes — an east hall linking India to the Arabian Gulf and a northern hall connecting Gulf states to Europe.

The rail and sea route will allow not solely the transit of products and companies, but additionally electrical and digital connectivity, in addition to pipes for the export of fresh hydrogen.

“It’s an actual game changer. It’s a historic agreement,” Manish Mohan, senior director for worldwide affairs on the Confederation of Indian Industry, advised Arab News. “The corridor provides alternative trade routes to the thriving markets of the Middle East and Europe but also extends India’s reach to North Africa and North America.”

The ship-to-rail transit system is anticipated to slash delivery prices and expedite transit occasions.

“This will help in the cross-border movement of goods and services. It’s quite ambitious and this will be a huge project,” Mohan stated. “It is completely integrating the region, so, basically, we are talking about a global value chain. It’s going to benefit not just one country but the whole region.”

According to Subhrakant Panda, president of the Federation of Indian Chambers of Commerce and Industry, the IMEC “promises to revolutionize” commerce and pave the best way for clear vitality and digital innovation.

“(It) will be instrumental in stimulating economic growth, creating jobs, and reducing greenhouse-gas emissions,” he stated. “This is more than infrastructure. It’s a blueprint for a more connected, sustainable, and economically vibrant future. It will also be a great opportunity for Indian and Saudi businesses to collaborate and benefit.”

Saudi-Indian relations are already sturdy and have gained momentum throughout India’s presidency of G20 this 12 months. The new commerce route is anticipated to additional increase them, together with India’s ties to its different Gulf ally and high commerce accomplice, the UAE.

“For India and the Middle East, the IMEC signifies a deepening relationship, with the convergence of the Middle East and South Asia into West Asia. India’s trade ties with Saudi Arabia and the UAE are already substantial, and this corridor could further strengthen their economic integration. It may also offer new opportunities for India in terms of trade, energy, and infrastructure development,” stated Mohammed Soliman, strategic applied sciences director on the Middle East Institute in Washington, D.C. 

“For Saudi Arabia and the UAE, it represents a diversification of partnerships beyond their roles as energy producers. Overall, the IMEC underscores the growing economic and strategic convergence between India and the Middle East,” he continued.

Given that the IMEC’s eight signatories account for about half of the world’s financial system, the transcontinental venture can also be poised to have geopolitical implications.

“Economically, it seeks to enhance trade and infrastructure connectivity across the Eurasian rimland,” Soliman advised Arab News. “Geopolitically, it aims to reshape the balance of power in Eurasia.” 

Due to its infrastructure and connectivity focus, some commentators have been evaluating the IMEC with China’s multi-trillion-dollar Belt and Road Initiative — a world infrastructure improvement venture adopted by Beijing in 2013 to recreate the traditional Silk Road and join it to Southeast Asia, South Asia, Central Asia, Russia and Europe. But for Soliman, the IMEC just isn’t a direct problem to the Chinese plan.

“The key difference lies in the autonomy it offers participating countries and the absence of a strict binary choice between China and the United States,” he stated. “Saudi Arabia and the UAE, integral to the IMEC, maintain strong ties with China. Alongside India, the three nations are also members of BRICS Plus. Therefore, the IMEC should be seen as a distinct initiative — one that aims to provide an alternative model for connectivity, with a focus on autonomy and diversified partnerships.”