Cabinet approved IGFA b/w India and United Arab Emirates on IMEC

Utkarsh Classes Last Updated 13-03-2024

Cabinet approved IGFA b/w India and United Arab Emirates on IMEC

Agreements and MoU 4 min read

The Union Cabinet, headed by Prime Minister Shri Narendra Modi, has given its Ex-post facto approval to the Inter-Governmental Framework Agreement (IGFA) signed on 13th February 2024.

The agreement was signed during the High-Level visit between the Indian Government and the Government of the United Arab Emirates.
The agreement aims to strengthen bilateral relations and enhance cooperation between the two countries in the Ports, Maritime, and Logistics sectors.

Inter-Governmental Framework Agreement (IGFA)

The IGFA outlines areas of cooperation between the two countries, with the objective of exploring joint investment opportunities and collaborations for the development of the India-Middle East Europe Economic Corridor (IMEC).
The Agreement provides a detailed framework for cooperation between the two countries, based on mutually agreed principles, guidelines, and agreements that align with the relevant rules and regulations of the countries' jurisdiction.

India-Middle East-Europe Economic Corridor (IMEC)

The Bharat-Middle East-Europe Economic Corridor, also known as the India-Middle East-Europe Economic Corridor, is an innovative and collaborative initiative aimed at enhancing connectivity and infrastructure. This project brings together countries such as India, UAE, Saudi Arabia, EU, France, Italy, Germany and the US.
It is part of the Partnership for Global Infrastructure Investment (PGII), which is a joint endeavor of G7 nations to finance infrastructure projects in developing countries.
The PGII aims to bridge the infrastructure gap in developing countries and expedite progress on Sustainable Development Goals (SDGs) worldwide. Moreover, it is viewed as a response to China's Belt and Road Initiative.
The corridor will include a rail link, an electricity cable, a hydrogen pipeline, and a high-speed data cable, facilitating greater trade among the participating nations, including energy products.
The rail link will connect shipping and rail lines from India to Europe passing through the UAE, Jordan, Saudi Arabia, and Israel. This initiative is expected to speed up trade between India and Europe by 40%, promoting economic growth and political cooperation.

The IMEC consists of two corridors -

The East Corridor commences at the Mundra port located on the western coast of India and proceeds to the Fujairah port. From there, it employs the railway system to convey goods in standardized containers through Saudi Arabia and Jordan to the Haifa port in Israel.
The North Corridor originates from the Haifa port and links Indian merchandise to multiple ports including Marseille in France, as well as other ports located in Italy and Greece.