New Delhi: Prime Minister Narendra Modi on Saturday announced the India-Middle East-Europe Economic Corridor (IMEC) with India, the UAE, Saudi Arabia, the European Union, France, Italy, Germany and the US as its members.

“Today we all have reached an important and historic partnership. In the coming times, it will be a major medium of economic integration between India, West Asia, and Europe,” he said.

The corridor will provide a new direction to connectivity and sustainable development of the entire world, said PM Modi

In his remarks, the Prime Minister highlighted the importance of physical, digital, and financial connectivity. He said that IMEC would help promote economic integration between India and Europe.

“Today we all have reached an important and historic partnership. In the coming times, it will be a major medium of economic integration between India, West Asia and Europe,” he said. The corridor will give a new direction to connectivity and sustainable development of entire world, said PM Modi

The rail and shipping corridor is part of the Partnership for Global Infrastructure Investment (PGII) — an initiative of the G7 nations to fund infrastructure projects in developing nations.

PGII is being viewed as the bloc’s counter to China’s Belt and Road Initiative.

The announcement after PM 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 the sidelines of the G20 Summit in New Delhi.

The event aimed at unlocking greater investment for infrastructure development and strengthening connectivity in its various dimensions between India, the Middle East and Europe.

Leaders of the European Union, France, Germany, Italy, Mauritius, UAE, and Saudi Arabia, as well as the World Bank, participated in the event.

An MOU on IMEC was signed by India, the USA, Saudi Arabia, UAE, the European Union, Italy, France and Germany.

PGII is a developmental initiative aimed at narrowing the infrastructure gap in developing countries as well as help towards accelerate progress on SDGs globally.

The IMEC comprises an Eastern Corridor connecting India to the Gulf region and a Northern Corridor connecting the Gulf region to Europe. It will include a railway and ship-rail transit network and road transport routes.

Some sections believe that the project is Biden’s attempt to further strengthen the G20 group against the dominance of China’s Xi Jinping and Russia’s Vladimir Putin.