“India-Middle East-Europe Corridor: Distinguishing It from BRI and Its Strong Financial Viability, According to Ashwini Vaishnaw

Railway Minister Ashwini Vaishnaw highlights the stark differences between India’s ambitious India-Middle East-Europe Economic Corridor and China’s Belt and Road Initiative (BRI). According to Vaishnaw, the India-Middle East-Europe Corridor stands out as a “highly bankable” venture. He pointed out that the BRI often imposes stringent conditions and piles up debt, pushing recipient countries into a debt trap. In contrast, the India-Middle East-Europe project allows each country to tailor its involvement according to its unique needs and preferences.

Vaishnaw revealed that numerous multilateral institutions, including sovereign wealth funds and private equity firms, are eager to provide financial support for the project. He emphasized that the revenue generated through transportation would be substantial, enabling the project to pay off its costs without burdening host countries with debt.

This initiative stems from a groundbreaking memorandum of understanding between India and other G20 members, aiming to boost economic development through improved connectivity and economic integration. The corridor plan comprises two primary segments: the eastern corridor connecting India to the Arabian Gulf and the northern corridor linking the Arabian Gulf to Europe.

Central to this plan is the establishment of a railway route that will serve as a reliable and cost-effective cross-border ship-to-rail network, complementing existing maritime and road routes. This development will facilitate the seamless movement of goods and services between India, the UAE, Saudi Arabia, Jordan, Israel, and Europe.

Additionally, the members plan to lay energy and digital connectivity cables alongside the railway track, as well as pipes for clean hydrogen export. This comprehensive approach promises to revolutionize regional trade and connectivity, positioning the India-Middle East-Europe Economic Corridor as a beacon of opportunity and collaboration in the global landscape.”