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Greece Minister of Foreign Affairs George Gerapetritis on IMEC Delay
Context:
Greece’s Minister of Foreign Affairs, George Gerapetritis, admitted that the India-Middle East-Europe Economic Corridor (IMEC), which was launched in September 2023, has faced delays. These delays are primarily attributed to the ongoing conflict in West Asia, particularly the Israel-Gaza war.
Context of the Visit
- Gerapetritis’ visit to India follows extensive diplomatic engagements in the Middle East.
- During his visit, he aims to strengthen India-Greece relations and explore opportunities in trade, investment, migration, and other strategic areas. His visit highlights the growing bilateral cooperation between the two nations and Greece’s active role in regional and global stability.
Key Areas of Talk
- Bilateral Trade and Economic Relations Between India and Greece
- India-Greece trade currently stands at approximately $1.9 billion (2022-23), with both countries aiming to double this figure by 2030. Key areas of trade growth include renewable energy, construction materials, and food & beverages.
Steps Greece Proposes to Strengthen Ties with India
- Opening new consulates in Mumbai and Bengaluru.
- Encouraging direct flights between the two nations.
- Doubling trade between India and Greece by 2030, with emphasis on sectors such as construction materials, food and beverages, and renewable energy.
- The completion of the EU-India Free Trade Agreement (FTA) will further boost this relationship by easing trade barriers.
- Migration Policy
- Migration, particularly illegal migration, remains a key issue in the India-Greece relationship.
- Greece is negotiating a Memorandum of Understanding (MoU) with India on migration and mobility to provide legal and orderly pathways for migrants, aiming to curb irregular migration.
About IMEC Launched on the Sidelines of G-20
- Announcement: Introduced in 2023 to link India, Middle East, and Europe through integrated infrastructure.
- Goals:
- Develop railways, shipping networks, hydrogen pipelines, and digital systems.
- Enhance trade, reduce costs, diversify supply chains, and foster economic integration.
- Participating Nations: India, U.S., UAE, Saudi Arabia, Italy, France, Germany, and the European Commission.
Reasons for Delay in IMEC
- The IMEC project has been delayed due to the volatile situation in West Asia, particularly the Israel-Gaza conflict. Despite these setbacks, Greece and other stakeholders remain committed to the project, which they view as not just an economic endeavor but also a geostrategic one that could bring peace and stability to the region.
- Investment and Financial Viability: Requires substantial funding, demanding private-sector participation.
- Political Coordination: Diverse economic priorities and domestic challenges could lead to conflicts.
How IMEC is Vital for Strengthening India-Greece Relations
- The IMEC corridor offers immense potential for India-Greece relations, positioning Greece as a gateway to Europe for Indian trade.
- Greece’s strategic geographical location, leadership in global shipping, and role as an energy hub align with the goals of the IMEC. Strengthening this corridor is crucial for Greece’s role in regional stability and its economic integration with India.
About India-Greece Relations and Utility of the Relation for the Region
- India-Greece relations are rooted in shared values of democracy and ancient civilisations. Both countries serve as pillars of stability in their respective regions—the Indo-Pacific and the Mediterranean. Their strategic partnership is significant not only for bilateral cooperation but also for global peace and security.
- Utility of India-Greece Relations for the Region
- India-Greece relations play a pivotal role in maintaining regional stability. Greece, through its strategic location and maritime influence, enhances India’s access to Europe and West Asia. The partnership contributes to global maritime security, trade facilitation, and tackling climate change and other international challenges.
- India-Greece as Pillars of Stability: Both countries are seen as anchors of peace in their regions, working towards peaceful conflict resolution, particularly in the Mediterranean and Indo-Pacific regions. Their cooperation is critical to promoting global security.
Challenges in Bilateral Relations and the Way Forward
- Challenges in trade and connectivity between India and Greece remain significant, including limited direct air links and relatively low trade volume. These challenges can be overcome by:
- Expanding direct flights to improve people-to-people connectivity.
- Boosting trade agreements, particularly the EU-India FTA.
- Fostering collaboration in areas such as shipping, renewable energy, and port infrastructure.
- Low Connectivity Between India and Greece
- The lack of direct flights between India and Greece is a major hindrance. Addressing this gap by facilitating air connectivity would greatly enhance trade, tourism, and cultural exchanges between the two countries.
Steps India and Greece Can Take to Strengthen IMEC
- Enhancing port infrastructure, with potential collaboration on Greek ports such as Kavala and Volos.
- Strengthening diplomatic ties through consular expansions in Mumbai and Bengaluru.
- Promoting trade and investment in strategic sectors like renewable energy and construction materials.
