One of the key announcements made during the recent G20 summit that generated enthusiasm in the Indian stock markets pertains to the India-Middle East-Europe Economic Corridor (IMEEC). This initiative outlines a strategic plan to establish connectivity between India and Europe via the Middle East region.
The core concept involves the development of a network of railway lines within the Middle East, creating transportation links that connect India and Europe through sea routes on either side. The primary objectives of this initiative are threefold.
Firstly, it seeks to promote increased trade activities between the involved regions. Secondly, it places emphasis on developing environmentally friendly infrastructure. Lastly, it aims to provide an alternative to the Chinese Belt and Road Initiative (BRI), which has been instrumental in enhancing Chinese influence on a global scale.
This announcement had a positive impact on the stock market, particularly benefiting Adani Ports, as the company had already acquired the Israeli Port of Haifa. Adani Ports is well-positioned to take advantage of the opportunities presented by the IMEEC project.
In an interview with CNBC-TV18, a distinguished panel of guests engaged in a detailed discussion regarding the anticipated outcomes and the pace of progress to be anticipated from this initiative.
The panel consisting of Navdeep Suri, Former Ambassador to Egypt and UAE who currently serves as a Distinguished Fellow at ORF; Rahul Chhabra, Former Secretary-Economic Relations at MEA with extensive experience as an Ambassador in trade relationships and Somnath Mukherjee, CIO and Senior Managing Partner at ASK Private Wealth.
First up, Chhabra pointed out that the IMEEC corridor carries significant geopolitical significance, particularly in connecting India, the world's fastest-growing economy, to Europe. However, he expressed uncertainty regarding the timeline for its completion.
Meanwhile, Suri noted that approximately 75 percent of the physical infrastructure is already established, but there is still a need for development in terms of customised infrastructure.
However, Mukherjee said it's premature to determine if this project is a viable investment opportunity. He added, “Thing that goes in favour of this project, besides the fact that some parts of it are likely already in place like the Etihad Rail, is also the constituent members of the project envisaged, between the United States India and Europe, we have probably the best financial expertise and bandwidth available in the world.”
For more details, watch the accompanying video.
First Published: Sept 12, 2023 5:00 PM IST
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