India Poised to Emerge as a Trusted Connectivity Bridge Through IMEC: Piyush Goyal

Union Minister of Commerce and Industry, Piyush Goyal, spoke at the India-Middle East-Europe Economic Corridor (IMEC) High-Level Roundtable on Connectivity and Economic Growth in New Delhi on Wednesday, according to a release from the Ministry of Commerce and Industry.

Piyush Goyal highlighted the need to focus on Regulatory Connectivity, going beyond just physical infrastructure. (Photo: PTI)

At the event, Goyal highlighted that the IMEC represents a strong affirmation of the leadership and partnership between India, the Middle East, and Eastern Europe—a progressive and visionary concept that has captured global attention.

The Minister emphasized that IMEC is not just a trade route, but rather a modern-day Silk Route – a partnership of equals that promotes synergy, connectivity, and inclusive prosperity. "It will bring down logistics costs by up to 30 per cent, reduce transportation time by 40 per cent, and create seamless trade linkages across continents," he said.

He added, "We will not only be linking trade; we will be linking civilisations and cultures -- from Southeast Asia to the Gulf, from the Middle East to Central Europe."

Goyal emphasized the potential reach of IMEC, noting that it could improve connectivity to Africa via the Middle East. The corridor would feature railways, roadways, energy pipelines, and clean energy infrastructure, including undersea cables. "India is already in discussions with Singapore on clean energy transmission. We are also engaged in dialogue with Saudi Arabia and the UAE," he shared.

According to the statement, Goyal highlighted the corridor's focus on sustainability and digital connectivity. "This initiative respects sovereignty and territorial integrity. It is not about dominance or creating economic unions. It is a partnership built on mutual trust, inclusivity and sustainability," he said.

Goyal presented five key recommendations for advancing the IMEC initiative, as outlined in a statement from the Ministry of Commerce and Industry. First, he emphasized the need to approach IMEC as a Public-Private Partnership (PPP). He argued that relying solely on the government would restrict the initiative’s effectiveness and financial sustainability. Instead, he advocated for a collaborative approach where the private sector takes the lead, contributing its expertise, practical needs, and innovative solutions. This model, he explained, would result in more efficient and cost-effective planning, as the private sector can offer solutions with real-world applicability. It would also enable policymakers to adopt a systematic approach while allowing the private sector to infuse flexibility and creativity, ensuring that the corridor remains viable, efficient, and sustainable in the long term.

Goyal emphasized the importance of focusing on Regulatory Connectivity, going beyond just physical infrastructure. He called for enhanced alignment in trade processes, customs procedures, and paperwork among participating nations. He pointed to India's ongoing regulatory collaboration with the UAE as a successful example and stressed that for the corridor to succeed, seamless cross-border movement with minimal checkpoints would be crucial. Key elements to achieving this include interoperable systems, digitisation, electric vehicle charging infrastructure, and synchronized regulations, which would unlock economies of scale. He also suggested using common digital payment systems, such as India’s Unified Payments Interface (UPI), as a model for facilitating smooth financial transactions. With periodic settlements in globally accepted reserve currencies, these mechanisms could help reduce transactional friction and lower banking costs. He proposed that such innovations, combined with virtual trade corridor frameworks like the India-UAE initiative, could be expanded through IMEC. This would strengthen broader agreements such as Free Trade Agreements (FTAs) with the GCC and EU countries, while also advancing cooperation in green hydrogen, renewable energy, and supply chain resilience.

Regarding his second suggestion, Goyal stressed the need for Innovative Financing Models to support the development of the corridor and its trade. He called for the active involvement of multilateral financial agencies and proposed exploring instruments like green bonds, as well as creating long-term "IMEC Bonds" to sustainably fund this transcontinental infrastructure.

The Minister's third suggestion was to actively engage with industry bodies and trade associations, recognizing that their insights are critical in designing a corridor that meets the real needs of businesses. Collaboration would help identify existing bottlenecks, promote best practices, and better integrate economies by eliminating trade frictions.

Finally, Goyal proposed involving Think Tanks and Academia in the visioning and design process. These institutions bring creativity, research capabilities, and long-term perspectives, which would contribute to policy advocacy, innovative solutions, and capacity-building efforts along the corridor. He described this as a comprehensive package of five initiatives that could transform IMEC into a strong, viable, and inclusive project.

The statement concluded by highlighting Goyal's reaffirmation of India's committed vision, with the country ready to serve as a reliable bridge connecting regions and fostering global cooperation under the guiding principle of Vasudhaiva Kutumbakam—"the world is one family," as the ministry added.

(This Article was originally published by Business Standard)