Following the declaration of war between Israel and Hamas, the ambitious plan of India to have an India-Middle East Europe economic corridor has been shadowed by dark clouds. Experts and Indian exporters predicted that the escalation of the Israel-Hamas war could hit the IMEEC plans in India. What if it happens? If you are wondering how the war situation in Israel and Gaza is affecting New Delhi’s plans to build an India-Middle Easat-Europe economic corridor, the following sections are waiting for you. We suggest you go through it till the end and read how the escalated Israel-Hamas war can affect the corridor plans of India. Go through it till the end. Drag down the page.
In response to attacks on Israel, the government of Israel declared war on Hamas. This news has stirred the whole world as countries are being hit in a range of ways due to this war between the Middle Eastern European countries, including India as its India-Middle East-Europe economic corridor (IMEEC) has been clouded. During the G20 summit that was held in New Delhi this year, it was decided to develop shipping and railway links between the three regions.
But fear has developed in New Delhi that the Israel-Hamas war could lead to an increase in insurance premiums and shipping costs as the same was seen on the trade routes affected last year by the Russia-Ukraine war. Kindly note that Israel is India’s 11th largest trade partner. The bilateral trading between India and Israel amounts to $12 billion. The Federation of Indian Export Organizations CEO Ajay Sahai said, “IMEEC trade corridor is a very long-term infrastructure project. While it is still early to assess the impact on the plans, if any of the (West Asian) countries join the Hamas, then definitely the entire project will be derailed because unless every country in the region is on board, the corridor won’t work,”
Countries including India have condemned the attack of Hamas on Israel while some Arab and non-Arab countries like Iran have lauded the attack of Hamas militants. The corridor plans of New Delhi were to boost the connectivity among India, Saudi Arabia, the EU, UAE, France, Italy, the US, and Germany. The corridor plans were announced last month that the regions will have a seamless flow of commerce, digital communication, and energy, after the building of India-Middle East European countries.