IMEC: Finance Minister Nirmala Sitharaman said, Israel-Hamas war has become a big challenge for India-Middle East-Europe Economic Corridor.

IMEC Update: The war between Israel and Hamas may impact the India-Middle East-Europe Economic Corridor, which was announced during the G-20 meeting in September 2023. Finance Minister Nirmala Sitharaman herself has expressed this concern. The Finance Minister said that due to the current tension, the India-Middle East-Europe Economic Corridor, which was announced during the G-20 meeting, is facing global political challenges. . 

Addressing the Indo-Pacific Regional Dialogue 2023, the Finance Minister said that the India-Middle East-Europe Economic Corridor is in the interest of all countries. This will increase efficiency in transportation, reduce logistics costs, increase economic integration, create employment opportunities and reduce greenhouse gas emissions, thereby contributing to a cleaner, safer, better world. He said that it also faces geopolitical challenges and the ongoing conflict in Israel and Gaza is a worrying situation.  

The war between Israel and Hamas started on 7 October 2023. Palestine’s Islamic organization Hamas continues to attack Israel and then Israel’s retaliatory action. Since then, it is feared that the war between Israel and Hamas may have an impact on the India-Middle East-Europe Economic Corridor. Under this corridor, a railway line is to be laid from the Gulf countries to Europe. 

US President Joe Biden, Indian Prime Minister to crack down on China Narendra Modi and the heads of state of Saudi Arabia and the United Arab Emirates G20 Summit, under the Joint Infrastructure Deal, it was announced to connect shipping from India and Gulf countries with Europe through rail network. This corridor will be connected through shipping lines with India and rail networks from Gulf countries to Europe. Connectivity between India, the Middle East and Europe is very important and it will not only bring economic benefits to all the countries but it also has strategic significance. But the shadow of the ongoing war between Israel and Hamas lies on this corridor.  

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