G20 Summit: Europe-Middle East-India trade plan to compete with China’s ‘Belt and Road Project’

G20 Summit: Europe-Middle East-India trade plan to compete with China's 'Belt and Road Project'

Plans for a modernized spice route are likely to be unveiled at the G20 summit in Delhi.

New Delhi:

G20 Summit 2023: Europe, Middle East and India to unveil plan to build modern spice route on Saturday The plan is likely to serve broader geopolitical interests as well as promote trade ties. Leaders from the US, Saudi Arabia, EU, UAE and other countries will meet on the sidelines of the G20 summit in New Delhi to launch plans to link data, railways, ports, power networks and hydrogen pipelines.

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Although the plan is highly business-focused, the plan could inspire major political change.

The signatories of the agreement on the scheme hope that it can help connect India’s vast market of 1.4 billion people with the West. It could also help balance Chinese infrastructure spending, boost Middle East economies, and normalize relations between Israel and the Arab Gulf states.

When details of the plans are announced, EU leaders will say that the India-Middle East-Europe Economic Corridor is expected to be “nothing short of historic”.

Hope to increase trade between India and Europe

The proposed project will connect railway and port facilities across the Middle East, including the United Arab Emirates, Saudi Arabia, Jordan and Israel, increasing trade between India and Europe by up to 40 percent.

Pramit Pal Chowdhury, Head of Eurasia Group’s South Asia practice, said that shipping containers transported from Mumbai to Europe via the Suez Canal today could in the future go from Dubai to Haifa in Israel and then to Europe. to carry This saves both money and time.

The Suez Canal is a major barrier to world trade

Currently the Suez Canal is a major barrier to world trade. About 10 percent of global maritime trade passes through the canal, but it is often beset by disruptions.

In March 2021, Suez traffic was disrupted for nearly a week after the Ever Given, a large container ship, ran aground in the waterway.

America is eager to see the project take off

Moreover, the plan aligns well with many of Washington’s goals in the Middle East. Officials say the US is eager to see these projects take off. According to US Deputy National Security Advisor John Finer, the initiative has “tremendous potential”.

President Joe Biden’s administration is actively pushing major oil producer and security partner Riyadh to normalize relations with Israel after decades of conflict and closed borders.

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