It was left to Prime Minister Narendra Modi to cap off a Saturday that saw agreement on the leadership declaration, the inclusion of the African Union, and an international alliance on biofuels at the ongoing G20 intergovernmental forum in New Delhi. The announcement of a new economic corridor to compete with China’s One Belt, One Road (OBOR) was the day’s final act.
A brief about India-Middle East-European Economic Corridor announced by PM Modi at the G20 Summit to compete with Beijing’s OBOR
Modi claimed the projected corridor would prove to be a successful method of economic integration between India, West Asia, and Europe at a session he co-chaired with US President Joe Biden.
India has given this area the highest attention during its development process. In addition to physical infrastructure, unprecedented amounts of money are being invested in social, digital, and financial infrastructure, according to Modi.
Ajit Kumar Doval, India’s national security advisor, was sitting in the row behind the prime minister and was paying close attention to the discussions. Modi made a subtle jab at China for using OBOR to spread the reach of its “debt trap diplomacy” in an effort to establish its hegemony over lower-income or middle-income countries, particularly those with abundant natural resources or strategic importance.
“As their dependable partner, we have carried out infrastructure projects in various nations of the Global South in sectors like electricity, railway, water, and technology parks. We have placed particular focus on a demand-driven and open approach in these endeavors,” he continued.
According to him, the forum may significantly help close the infrastructure gap in the Global South by utilizing the Partnership for Global Infrastructure and Investment (PGII).
He added that by adhering to some core principles, increasing connectivity offered a chance to boost mutual trust in addition to being a way to improve trade between various nations.
“For instance, adherence to international standards, laws, and regulations. Respect for the geographical integrity and financial sustainability of all nations; avoiding rising debt loads; and adherence to all environmental norms.
By linking 65 nations in East Asia, East Africa, and Central Europe, China’s grandiose OBOR initiative, which is expected to cost $4 to $5 trillion, aims to create a New Silk Route. The project, which is supposed to be finished by 2049, is, however, at a standstill in many nations due to worries that low-cost Chinese loans could eventually balloon into unmanageable debts and threaten national sovereignty.
The declaration, according to US Vice President Joe Biden, advanced US intentions to collaborate with allies like India to alleviate wealth disparities across low- and middle-income nations by investing in economic corridors.
“On a successful domestic action, someone once said, “It was a big deal. Biden exclaimed, “This is really important.
According to him, the UAE, Saudi Arabia, Jordan, and Israel served as connecting points for investments in maritime and rail infrastructure that ran from India all the way to Europe.
“Unlocking possibilities that will greatly simplify the trade and export of sustainable energy, provide access to safe, dependable electricity, install cables that will link communities, and safeguard the internet. Additionally, it will help to create a Middle East that is more integrated, rich, and stable.
Additionally, funds will be invested in a brand-new rail line in Africa that will run from an Angolan port via Zambia and the Democratic Republic of the Congo to the Indian Ocean on the opposite side of the continent.
He continued by saying that it was among the first paradigm-shifting investments put forth by the US, which will go on to establish similar initiatives across Africa, Asia, and the Americas.
In addition, Biden said, “We are working with our allies to mobilize the trillions of dollars in investments needed to fill infrastructure gaps around the world, including the establishment of a new investor forum that the United States will host in a few weeks.
Since the 1948 Marshal Plan for the restoration of 17 western and southern European countries decimated by World War II, this may be the most comprehensive infrastructure construction program launched by the US. Its foundation lies in the global demand for building resilient supply chains as well as the belief by most nations that the major economy with the quickest rate of growth is a lot more reliable partner than China.
For instance, buyers prefer purchasing Indian autos in various African nations over relatively less expensive products from Chinese automakers due to their longevity.
