Can the IMEC address the Red Sea crisis?

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.
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