Israel war may derail India-Middle East economic corridor: Think tank

The Israel-Hamas conflict may delay and complicate the India-Middle East Europe Economic Corridor (IMEEC) project, according to think tank Global Trade Research Initiative (GTRI).

GTRI warned that while the conflict's immediate consequences are confined to Israel and Gaza, its ripple effects throughout the Middle East cannot be underestimated.

It said the war could also derail the prospect of a peace deal between Israel and Saudi Arabia, a key part of the IMEEC framework.

Saudi Arabia and Israel have been trying to come closer, GTRI co-founder Ajay Srivastava said, adding the war may derail any progress made.

"The ongoing Israel-Hamas conflict may disrupt the project's timelines and outcomes, marking a pivotal juncture in the development of this ambitious economic corridor,” he said.

“While the war's direct impact remains regional, the geopolitical consequences reverberate far beyond, with potential consequences for the proposed corridor," he added.

Economic corridor

IMEEC, a proposed economic corridor, aims to boost economic development by fostering connectivity and economic integration between Asia, the Persian Gulf and Europe.

The corridor would span from India to Europe, passing through the UAE, Saudi Arabia, Jordan, Israel and Greece.

It was unveiled at the G20 summit in New Delhi last month.

The project's main goal is to enhance transportation and communication links between Europe and Asia. It is viewed as the response to China's Belt and Road Initiative.

(With agency inputs)