Why in news?

The Group of Seven (G7) industrialized nations have pledged to support concrete infrastructure initiatives, including the India-Middle East-Europe Economic Corridor (IMEC).

This commitment was made in the G7 Summit Communique, released at the end of the three-day G7 Summit, which was attended by PM Modi (India was a special invitee along with Brazil, Argentina, UAE and Turkiye, among others.).

What’s in today’s article?

• Middle Corridor
• India-Middle East-Europe Economic Corridor (IMEC)
• Partnership for Global Infrastructure (PGII)
• Support extended by G7 to various infrastructure projects

Middle Corridor

• About
  • The Middle Corridor, officially known as the Trans-Caspian International Transport Route (TITR), is a key logistics and transportation route that connects Europe and Asia.
  • It provides an alternative to the traditional Northern and Southern corridors, enhancing trade and economic cooperation between the regions it traverses.
• Route
  • The Middle Corridor begins in Southeast Asia and China, crosses Central Asia through countries such as Kazakhstan, Azerbaijan, and Georgia, and reaches Europe via Turkey.
  • The corridor involves multimodal transportation, including rail, road, and maritime routes across the Caspian Sea.

India-Middle East-Europe Economic Corridor (IMEC)

• Background
  • At the sidelines of the G20 Summit held in New Delhi in September 2023, an MoU was signed to develop a rail and shipping corridor connecting India to Europe.
  • This corridor would pass via the Middle East between India, United States, Saudi Arabia, the United Arab Emirates, France, Germany, Italy, and the EU.
  • It has been known as the India-Middle East-Europe Economic Corridor (IMEC).
• About
  • The IMEC is a major infrastructure initiative aimed at enhancing connectivity and economic integration between India, the Middle East, and Europe.
  • It involves the development of a comprehensive network of transportation, energy, and communication infrastructure, facilitating trade and economic cooperation across these regions.
• Route
  • 
• Significance
  • Economic Growth - The IMEC corridor can significantly boost trade and investment opportunities, contributing to economic growth in India and the participating regions.
    • Enhanced connectivity will reduce transportation costs and time, making trade more efficient and competitive.
  • Strategic Connectivity - The corridor provides India with direct access to European markets and the Middle East, bypassing traditional routes.
    • This strategic connectivity is crucial for India's global trade aspirations and its aim to become a major player in global supply chains.
  • Energy Security - The corridor can facilitate energy cooperation, allowing India to diversify its energy sources by tapping into the Middle Eastern energy supplies.
    • This diversification is essential for India's energy security and reducing dependency on specific regions.
  • Technological and Infrastructure Development: Participation in IMEC can lead to significant technological and infrastructure advancements in India, promoting modernization in transportation, communication, and energy sectors.
  • Geopolitical Influence: The corridor strengthens India's geopolitical influence by enhancing its role in global trade networks and fostering closer ties with key regions like the Middle East and Europe.
    • The IMEC is also seen as an initiative by like-minded nations to gain strategic influence in the face of China's Belt and Road Initiative (BRI).
    • BRI has faced increasing criticism over lack of transparency and disregard for sovereignty of the nations.
  • Challenges
    • Political Instability: The corridor passes through regions with varying degrees of political instability, particularly in the Middle East.
      • The ongoing Israel-Hamas war is further complicating the issue of safe transportation through this region.
    • Funding and Investment: Securing adequate funding and investment for such a large-scale infrastructure project is a significant challenge.
    • Regulatory and Legal Issues: Harmonizing regulatory and legal frameworks across different countries is complex.
      • Differences in trade policies, customs regulations, and legal standards can hinder seamless connectivity and trade.
    • Security Concerns: The corridor needs to address security threats, including piracy, terrorism, and geopolitical tensions.

Partnership for Global Infrastructure (PGII)

• Background
  • At the 2021 G7 Summit, G7 leaders had announced their intent to develop a values-driven, high-impact, and transparent infrastructure partnership.
  • It was to meet the enormous infrastructure needs of low- and middle-income countries and support the US’ and its allies’ economic and national security interests.
  • At the 2022 G7 summit, the participating leaders formally launched the Partnership for Global Infrastructure (PGII).
• About
  • Launched at 48th G7 Summit, being held at Germany, this initiative is meant to
    • mobilise hundreds of billions of dollars; and
    • deliver quality, sustainable infrastructure that makes a difference in people’s lives around the world.
  • Under this, G7 leaders pledged to raise $600 billion in private and public funds over five years to finance needed infrastructure in the developing countries.
• Four priority pillars of PGII
  • Climate and energy security
    • Tackling the climate crisis and bolstering global energy security through investments in climate resilient infrastructure, transformational energy technologies.
  • Digital connectivity
    • Developing, expanding, and deploying secure ICT networks and infrastructure to power economic growth and facilitate open digital societies.
  • Gender equality and equity
    • Advancing gender equality and equity by investing in
      • care infrastructure that increases opportunities for economic participation by women,
      • improved water and sanitation infrastructure that addresses gender gaps in unpaid work and time use.
  • Health and health security
    • Developing and upgrading the infrastructure of health systems and contributing to global health security.

Support extended by G7 to various infrastructure projects

• Support extended to IMEC
  • At the end of the three-day G7 Summit held in Apulia, Italy, the Group of Seven nations committed to promote the IMEC.
• Support to other infrastructure project
  • G7 also extended support for the Lobito Corridor in Central Africa and Luzon Corridor and the Middle Corridor.
    • Lobito Corridor–It extends from the port city of Lobito on the Atlantic coast of Angola through the Democratic Republic of the Congo (DRC) and into Zambia.
    • Luzon Corridor - Itis a strategic economic and infrastructure corridor located on the island of Luzon in the Philippines. Luzon is the largest and most populous island in the Philippines.
  • Support extended to PGII
    • G7 leaders decided to promote concrete G7 PGII (Partnership for Global Infrastructure and Investment) initiatives, flagship projects.