Modi pushes ahead with Mideast-Europe corridor despite conflict

By Sudhi Ranjan Sen and Dan Strumpf

Prime Minister Narendra Modi struck an agreement with the United Arab Emirates to continue working on a major trade corridor linking India through the Middle East to Europe, despite the widening regional conflict stemming from the war between Israel and Hamas.

Modi met with UAE leader Sheikh Mohammed bin Zayed Al Nahyan on Tuesday in Abu Dhabi, where the war and conflict in the Red Sea featured heavily in discussions, according to India’s Foreign Secretary Vinay Kwatra.

Both leaders agreed, though, to take the first step to operationalize part of the ambitious India-Middle East-Europe Economic Corridor, or IMEC, he said.

India's newly proposed East-West trade route.

While the conflict in Gaza and the situation in the Red Sea remains a concern and both leaders continue to monitor and exchange notes on the issues, “it is equally important to ensure the economic cooperation is taken forward, continues to stay the course and maintain momentum,” Kwatra told reporters in Abu Dhabi on Wednesday.

The IMEC corridor — touted by the US and its allies last year — is an ambitious ship-to-rail network that’s meant to link India, the UAE, Saudi Arabia, Jordan and Israel. The project aims to boost trade and speed up the transport of goods, although it’s also seen as a way to counter China’s influence and massive infrastructure investment in the region.

During Modi’s trip, agreements were also reached on a bilateral investment treaty and pledges to work together on electricity connection and digital infrastructure, India’s Ministry of External Affairs said in a statement.

The prime minister addressed thousands of Indians living in the Gulf nation on Tuesday, hailing ties between the two countries and calling the UAE leader his brother. Modi is due on Wednesday to inaugurate the first Hindu temple in the UAE.

The Indian leader will visit Qatar after his trip to the UAE, and is expected to meet with the Emir of Qatar, Sheikh Tamim bin Hamad Al Thani. The trip follows days after Qatar freed eight former Indian navy personnel who were facing death sentences for alleged spying. Modi was personally involved in helping to secure the release of the men, India’s foreign secretary said earlier this week.