Syllabus: GS-II, Subject: International Relations, Topic: Global Issues, Issue: Red Sea Crisis
Importance of red sea:
- Crucial for global trade, 12% of international merchandise passing through it.
- India heavily relies on the Red Sea route for trade with Europe and North Africa.
- constituting 24% of exports and 14% of imports.
- Going around the Cape of Good Hope will increase the cost.
India-Middle East-Europe Economic Corridor (IMEC)
Announced during the G-20 summit in 2023,
- It is a planned economic corridor which will connect India to Europe.
- Challenges:
- lack of investments,
- Israel-Palestine conflict
- vulnerability of the Strait of Hormuz.
- Solutions:
- conducting an economic study,
- establishing a robust financial framework,
- forming a comprehensive multi-nation operational framework.
