New Delhi, April 14: India now has a significant opportunity to view the India-Middle East-Europe Economic Corridor (IMEC) as a robust option for national and economic security.
According to a report released on Tuesday, amidst current global tensions and instability, India can pressure its partner nations to swiftly implement essential rail agreements, standardize customs, and clarify rules for energy and digital corridors.
The report from the International Center for Peace Studies in New Delhi suggests that with sustained political will and adequate funding, IMEC could become a strong alternative route for trade and energy between India and Europe, capable of handling both current and future crises.
It highlights that the Bab al-Mandeb Strait, a crucial maritime route, has become a center of significant geopolitical tension. Activities linked to the Houthis and Iran pose threats to global trade, energy, and internet infrastructure. Approximately 10% of the world’s oil and nearly 20% of internet traffic pass through this route. Any disruption here would force ships to take a longer route around Africa, significantly increasing costs.
This is particularly concerning for India, as about 95% of its trade relies on maritime routes. Such instability could have a substantial impact on the country’s economy.
The report indicates that IMEC could serve as a vital solution, connecting both land and sea routes, thereby reducing dependence on sensitive maritime paths.
It also warns that if a situation similar to the Strait of Hormuz arises in the Bab al-Mandeb Strait, supply chains and energy supplies could be severely affected.
Amid rising tensions in West Asia, the report notes that the Houthis in Yemen, backed by Iran, have launched missile attacks on Israel. Following the conflict that began on February 28 between the U.S.-Israel and Iran, Iran has targeted Gulf nations and weaponized the Strait, leading to a global energy crisis. Meanwhile, clashes continue between Israel and Hezbollah in southern Lebanon.
Experts believe that if the Houthis fully engage in this war, it could pose a significant threat to the Bab al-Mandeb Strait, a vital maritime route connecting Asia, Africa, and Europe.
The report also mentions that despite the blockade imposed by the Houthis after the Gaza conflict, India has managed its trade and energy supply. India has taken measures such as altering routes, incurring additional costs, increasing naval presence, and preparing in advance.
India has adopted a balanced strategy; it did not join the U.S.-led Operation Prosperity Guardian but significantly increased its naval monitoring and activities in the Gulf of Aden and the northern Arabian Sea.
In conclusion, the report states that in light of such maritime instability, new options are being explored. These include enhancing regional security cooperation, sharing insurance risks, and developing new trade routes, with IMEC seen as a strong medium-term alternative.
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