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Future of Regional Corridors
Context:
The ongoing conflict triggered by Hamas’ al-Aqsa Storm operation on October 7, 2023, has intensified tensions in the Middle East, with Iran-backed groups like Hezbollah and Yemeni militias joining the fray.
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- This escalating instability has significant implications for regional security and threatens the future of two crucial Indian-backed trade corridors: the International North-South Transport Corridor (INSTC) and the India-Middle East-Europe Corridor (IMEC).
- Both initiatives are vital to India’s strategic and economic interests, positioning the country as a key player in Eurasian connectivity.
The Importance of INSTC and IMEC:
- The INSTC, launched in 2000 by India, Russia, and Iran, aims to connect India to Central Asia and Russia via Iran, offering an alternative to the Suez Canal.
- By reducing transit times and bypassing U.S. sanctions, the corridor enhances regional trade and provides India with a tool to counter China’s Belt and Road Initiative (BRI).
- Key to this initiative is India’s investment in Iran’s Chabahar Port, which integrates with the corridor’s infrastructure.
- However, the risk of an Iran-Israel conflict could deter investment, threatening the corridor’s viability.
- The IMEC, introduced during the September 2023 G20 summit, envisions a trade network linking India with Europe via the Persian Gulf and Israel.
- Backed by India, the U.S., and key European and Middle Eastern nations, the IMEC is seen as a counterweight to China’s BRI and a competitor to the Suez Canal route.
- By bypassing the conflict-prone Red Sea and Yemeni coasts, it aims to provide a more secure and efficient trade link.
- However, the ongoing war has delayed progress, casting uncertainty over its implementation.
Challenges and Implications for India:
To safeguard its strategic corridors and regional interests, India can leverage its neutral relations with both Israel and Iran to de-escalate tensions:
- Economic Diplomacy: India’s robust trade ties with Iran and its security cooperation with Israel position it as a credible mediator.
- Facilitating Dialogue: By promoting indirect talks through diplomatic platforms, India can act as a bridge between conflicting parties.
- Collaboration with Global Powers: While the U.S. remains a key player, India’s non-expansionist stance allows it to mediate without threatening regional actors, gaining trust from various factions.
Conclusion:
By fostering dialogue and pushing for de-escalation, New Delhi can protect its economic corridors and contribute to broader regional stability, ensuring its continued ascent as a global player in Eurasian connectivity.
