The governments of India and the United Arab Emirates (UAE) are looking to launch a portal that will help ships get clearances before docking at ports that are part of the India–Middle East–Europe Economic Corridor (IMEEC) in either country, multiple officials aware of the ongoing discussions told Moneycontrol.
"The online portal will likely be launched in the second half of 2024-25, possibly by October," a senior government official involved in the process said.
He added that initially, the online portal will have a port clearance and payment facility for ships docking in Indian and UAE ports.
"Initially, we are trying to onboard the port of Jebel Ali, also known as Mina Jebel Ali, Jawaharlal Nehru Port Authority, Kandla port, and Mumbai port on the portal," the government official said.
Another official told Moneycontrol that once operational, the portal will also include customs clearances, container tracking, and integrated logistics players to help provide ease of movement for containers across ports and in the hinterland, across countries.
"We are working to link the instant payment platforms of both India and the UAE with the upcoming platform, which will facilitate seamless cross-border transactions between the two countries," the government official said.
Back in February 2024, India and the UAE signed seven agreements, including an Intergovernmental Framework Agreement on the India-Middle East-Europe Economic Corridor, an MoU to create linked payment systems, and an agreement on inter-linking domestic debit/credit cards.
The governments of UAE and India are also in talks with the governments of Saudi Arabia and Oman to extend the online platform for seamless container and ship movement across all four countries.
"The success and launch of the online platform between UAE and India will help boost the confidence of all other countries that are part of the IMEEC, like Saudi Arabia and Oman," the second government official said.
Last week, the Group of Seven (G7) industrialised nations committed to promote infrastructure initiatives such as the IMEEC in the G7 Summit Communique issued at the end of the three-day session, which was attended by Prime Minister Narendra Modi.
The communique was issued in the evening of June 14 after the customary `family' photo at the luxury resort of Borgo Egnazia, where the G7 also reiterated a commitment to a free and open Indo-Pacific based on the rule of law.
"We will further promote concrete G7 PGII (Partnership for Global Infrastructure and Investment) initiatives, flagship projects, and complementary initiatives to develop transformative economic corridors for quality infrastructure and investment, such as the deepening of our coordination and financing for the Lobito Corridor, the Luzon Corridor, the Middle Corridor, and the India-Middle East-Europe Economic Corridor, also building on the EU Global Gateway, the Great Green Wall Initiative, and the Mattei Plan for Africa launched by Italy," reads the communique.
Last September, India joined forces with several G20 allies to launch the India-Middle East-Europe Economic Corridor in response to China's Belt and Road Initiative (BRI) initiated in 2013, criticised for its lack of transparency and disregard for the sovereignty of nations.
On the sidelines of the G20 Summit held in New Delhi, India facilitated the economic corridor agreement, involving the US, UAE, Saudi Arabia, the European Union (EU), Italy, France, and Germany. The objective was to enhance connectivity and foster economic integration among South Asia, the Arabian Gulf, and Europe.
Notably, later, Israel and Greece also evinced interest in joining the IMEEC, underscoring its significance in regional connectivity and economic cooperation.
Significance of IMEEC
India aims to bank on its strong trade ties with the Arab Gulf region, anticipating significant growth potential once infrastructure and connectivity challenges are addressed.
The IMEEC enhances regional connectivity and economic potential by linking key partners like Israel and Jordan, which is crucial to India's broader regional strategy. It also promises shorter trade routes between India, the Eastern Mediterranean, and Western Europe, bypassing critical checkpoints like Bab al-Mandab and the Suez Canal.
India's footprint in the region is poised to expand, offering opportunities for Indian firms to invest in infrastructure development.
Geopolitically, supporting the IMEEC positions India as an emerging global power, leveraging its economic growth trajectory since 1991, and its role in the G20.
This ambitious infrastructure project, linking India with the Middle East and Europe, could significantly enhance economic integration with the Gulf nations, other regional states, and Europe.
The corridor aims to establish rail links across Middle Eastern countries, connecting them to Indian ports to facilitate efficient energy and trade flow from the Gulf to Europe, reducing shipping times, costs, and fuel consumption.
The IMEEC is also seen as an initiative by like-minded nations to gain strategic influence in the face of China's BRI, a mega connectivity project that links China with Southeast Asia, Central Asia, Russia and Europe.
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