The ongoing crises in the Middle East, including the Gaza war, tensions involving Iran and disruption risks around the Strait of Hormuz, have made the India-Middle East-Europe Economic Corridor (IMEC) more necessary, according to Gérard Mestrallet, Special Envoy of the French President for IMEC.
“The difficulties — October 7, Gaza, Iran, Hormuz — have even increased the necessity to have a resilient corridor, offering several possibilities to the market,” Mestrallet said while addressing an event in New Delhi on Tuesday.
Mestrallet was in New Delhi for the launch of the IMEC Ports Club alongside Christophe Castaner, Chairman of the Port of -Fos. He said the corridor is increasingly being viewed not as a single fixed route but as a network of complementary routes that can provide alternatives when one route is disrupted.
“IMEC is now considered as a network of complementary routes in order to be more resilient. More resilient meaning that if on one particular route there is a blockage, an accident, a technical problem or even a local crisis, the other routes will be available,” he said.
The was announced in September 2023 by India, the United States, Saudi Arabia, the United Arab Emirates, France, Germany, Italy and the European Union.
“The objective of is to create infrastructure in order to connect three continents — India, the Near East and Middle East, and Europe — through transport of goods and containers, energy and data transmission,” Mestrallet said.
The corridor is designed to connect India with the Middle East and Europe through a combination of maritime, rail, energy and digital connectivity infrastructure.
Mestrallet said should not be viewed merely as an economic or infrastructure initiative.
“We consider this project not only as a technical project or an economic project, but also as a geostrategic project, in order to strengthen the links between India and Europe,” he said.
The current geopolitical environment has strengthened the case for alternative routes, Mestrallet said.
The French envoy said the market itself would ultimately determine which routes are used, with infrastructure performance, cost and speed remaining important considerations. However, the growing risks in the Middle East have put greater emphasis on resilience.
“Sometimes it will be cheaper, more competitive to take a longer route, but a safer route,” Mestrallet said, explaining how rising risks can alter the economics of trade routes through higher insurance costs.
Mestrallet said the current turmoil should not be viewed as undermining the long-term relevance of IMEC.
“Of course, the is today in trouble, and IMEC will be the perfect project for the day after,” he said.
The envoy also pointed to the recently concluded India-EU free trade agreement as a potential driver of future demand for the corridor.
“The free trade agreement signed between the and India recently will, of course, increase trade, increase traffic and increase exchanges between India and the EU,” he said.
“To be able to transport this additional goods, additional traffic, there is a need for additional infrastructures. And IMEC is precisely for that,” Mestrallet added.
The French envoy also highlighted the growing role of ports in preparing for the corridor.
“The ports are organising themselves in order to answer to the challenges of IMEC,” he said.
The Ports Club was launched in New Delhi as an initiative involving ports from countries connected to, or interested in working with, the corridor.
Mestrallet said the initiative reflected growing interest in developing the infrastructure needed to make IMEC operational and resilient.
He also said several countries and ports outside the original eight signatories have expressed interest in working with or joining IMEC, naming Egypt, Lebanon and Oman, while Greece and Cyprus are keen to join as full members.
On whether IMEC can financially compete with China’s Belt and Road Initiative (BRI), Mestrallet said the two projects operate on fundamentally different models.
“The concept is very different. And so we cannot compare the competitiveness of the financing of the BRI and of IMEC,” he said.
“For the BRI, there is one central bank which finances the project. Depending on the country, depending on the nature of the sector, we will gather different groups,” he added.
