Israel war may hurt India-Middle East-Europe Economic Corridor: report

THE deadly conflict between Israel and Palestinian militant outfit Hamas could hurt the prospect of a historic peace agreement between Israel and Saudi Arabia, a key aspect of the India-Middle East Economic Corridor (IMEEC) framework, a report by India's Global Trade Research Initiative (GRTI) said.

According to GTRI co-founder Ajay Srivastava, the ongoing conflict which started following Hamas's co-ordinated attacks on Israel on October 7, may derail the IMEEC's timelines and projects.

"While the war's direct impact remains regional, the geopolitical consequences reverberate far beyond, with potential consequences for the proposed corridor," he was quoted as saying.

A memorandum of understanding to set up the IMEEC was signed between a number of countries, including India, the US, UAE, Saudi Arabia, France, Italy, Germany and the European Union at the G20 summit in New Delhi in India.

The IMEEC will have two distinct corridors -- the east corridor linking India to West Asia and the northern corridor connecting West Asia to Europe.

The project, which will include railway connection to provide a cost-effective cross-border ship-to-rail transit network to back the current multi-modal transport routes promoting shipment of goods and services between South East Asia through India to West Asia and Europe.

The strategic project is often viewed as a response to China's Belt and Road Initiative, something that India is opposed to.