G20 Summit 2023: In a historic development, India, the United States, Saudi Arabia, and the European Union have jointly unveiled a multinational initiative. The initiative, being dubbed the “Modern-day Spice Route” by many, was announced during the G20 Summit in New Delhi, where leaders gathered to discuss ways to enhance global infrastructure and investment. Prime Minister Narendra Modi and US President Joe Biden co-chaired a special event on Partnership for Global Infrastructure and Investment (PGII) and India-Middle East-Europe Economic Corridor (IMEC) on Saturday. The event aimed to unlock greater investment for infrastructure development and strengthen connectivity across India, the Middle East, and Europe.

Global support for SDGs

Leaders from the European Union, France, Germany, Italy, Mauritius, UAE, Saudi Arabia, and the World Bank participated in this event. The significance of this partnership lies in its potential to bridge the infrastructure gap in developing countries and accelerate progress towards the Sustainable Development Goals (SDGs) on a global scale.

The IMEC encompasses an Eastern Corridor connecting India to the Gulf region and a Northern Corridor linking the Gulf region to Europe. This project includes the development of railway and ship-rail transit networks, as well as road transport routes, further promoting economic integration between India and Europe.

Foundations of human progress

In his remarks, Prime Minister Modi emphasised the importance of physical, digital, and financial connectivity, asserting that these are the foundations of human development. He highlighted India’s commitment to investing in physical, social, digital, and financial infrastructure, laying a strong foundation for a developed India.

The Prime Minister also mentioned that India has implemented infrastructure projects in various sectors, including energy, railways, water, and technology parks, in several countries as a reliable partner. These efforts have been guided by a demand-driven and transparent approach, ensuring mutual benefit.

The PGII, one of the key components of this partnership, aims to reduce the infrastructure gap in developing countries and contribute to global progress on SDGs. The initiative has the potential to make a significant impact on infrastructure development in the global south.

What sets this initiative apart is India’s vision of connectivity, which transcends regional borders. Prime Minister Modi stressed that connectivity is not just about promoting trade amongst different nations but also a source of strengthening mutual trust between them. He highlighted some fundamental principles that should be ensured during connectivity initiatives, including adherence to international norms, respect for national sovereignty, enhancing financial viability, and environmental sustainability.

China’s BRI

The move comes as China is also working on its Belt and Road Initiative (BRI), which has been facing challenges such as rising loan defaults and slowing investments in recent times. Launched in 2013, the BRI initiative initially meant to link East India with Europe via physical infrastructure. Over time, however, the project has expanded to Africa, Oceania, and Latin America.

As the world witnesses the inauguration of this historic partnership in the form of IMEC on the sidelines of India-hosted G20 Summit, it is seen as a significant step towards reshaping the global economic landscape and promoting sustainable development, connectivity, and stability in the participating regions.