Jakarta, CNBC Indonesia – A multinational rail and shipping project connecting India with the Middle East and Europe has been announced on the sidelines of the G20 Summit in New Delhi, Saturday (9/9/2023). This is seen as a challenge to China’s economic ambitions in the region.
The transport corridor, which includes India, Saudi Arabia, the United Arab Emirates, Jordan, Israel and the European Union, is expected to help increase trade. Additionally, the pathway provides energy resources, and improves digital connectivity.
Indian Prime Minister (PM) Narendra Modi, who hosted this year’s G20 Summit, said that this project would be very beneficial for future generations.
“Improving connectivity with the rest of the region has become a top priority for India,” said Modi, speaking through an interpreter as quoted by Al Jazeera.
“We believe that connectivity is not only a means of enhancing mutual trade between countries but also enhancing mutual trust.”
This project also received praise from the United States (US), which has long had the ambition to defeat the influence of China’s Belt and Road (BRI) project. President Joe Biden’s security adviser, Jake Sullivan, said the network reflects Biden’s vision for “long-term investment” stemming from “effective American leadership” and a willingness to embrace.
“Improved infrastructure will increase economic growth, help unite the countries of the Middle East and make the region a center of economic activity, rather than a source of challenges, conflict or crisis as has been the case in recent history,” he added.
Al Jazeera’s Katrina Yu said European and US officials in Delhi hailed the deal as a “game changer”. He said this agreement would reduce trade time between India and Europe by 40%.
“They say this is an economic corridor designed to connect India, the Middle East and Europe. It will consist of railway lines and shipping lines that will pass through the UAE, Saudi Arabia, Jordan and Israel,” Yu said.
The Story of Favorite Homecoming Transport from Ancient Times: Trains