It is an infrastructure development project that aims to create connectivity through resilient shipping networks, energy cables, and gate links. It seeks to boost trade, clean energy, and economic growth while providing an alternative to China's Belt and Road Initiative. The project forms part of the Partnership for Global Infrastructure and Investment (PGII). PGII is a values-driven, high-impact, and transparent infrastructure partnership to meet the enormous infrastructure needs of low and middle-income countries.

IMEC is expected to stimulate economic development through enhanced connectivity and economic integration between Asia,  the Arabian Peninsula, and Europe. 

It will comprise two separate corridors: 1. The Eastern Corridor connecting India and the Arabian Gulf and 2. The Northern Corridor connecting the Arabian Gulf to Europe.

The proposed IMEC will consist of railroad, ship-to-rail networks, and road transport routes extending across two corridors. It will also include an electricity cable, a hydrogen pipeline, and a high-speed data cable.

What are the economic implications of IMEC on India?

• Enhanced trade opportunities: It presents a transformative opportunity for India to boost economic growth by enhancing its trade connectivity with key regions. The route could significantly reduce transit times making trade with Europe 40% faster compared to the Suez Canal maritime route.
• It firmly positions India along the trade route spanning South East Asia to the Gulf, West Asia, and Europe
• Stimulated industrial growth: The IMEC will encourage industrial growth, particularly in regions connected to the corridor, as companies will find it easier to transport raw materials and finished products.
• Job creation: As economic activities expand due to improved connectivity, there will be a surge in job opportunities across sectors. The growth in trade infrastructure and allied industries will necessitate skilled and unskilled labor, promoting employment.
• Energy security and resource access: The corridor can facilitate secure energy and resource supplies, especially from the Middle East. Reliable access to resources will stabilize India's energy sector and support its growing economy.
• Facilitating special economic zones (SEZs): The corridor can be strategically leveraged to develop SEZs along its route. SEZs can attract foreign investment, promote manufacturing, and drive economic growth in these designated zones.
• This corridor offers India a crucial role in global commerce, digital communication, and energy networks vis-a-vis China's BRI.

India and the US have converged their interest in this corridor. This economic and connectivity project is the second mega convergence between India and the US in the Middle East. It can turn out to be far more significant for the Indo-US relationship.

The major roadblock in the implementation of IMEC at present is the Israel-Hamas War and the shifting geopolitical dynamics in West Asia. It is likely to cast a significant shadow over this much-discussed project.