Why is it in the News?

The G-20 Summit in 2023, hosted by India, achieved remarkable success despite the group's focus on economic matters in addressing global complexities. The global media recognized India's accomplishments during this summit for its diverse outcomes.

The significance of the G20 Delhi Declaration:

• A Collaborative Consensus: The declaration achieved a rare consensus among countries with diverse perspectives and interests.
• Balancing Act: The Delhi Declaration strikes a delicate balance by addressing global challenges without directly singling out specific nations for their actions.
• For instance, it refrains from naming Russia's aggression against Ukraine but underscores the importance of upholding the United Nations charter and principles of territorial sovereignty.
• Tailored to Diverse Interests: This balanced approach enables each member to identify elements in the declaration that align with their interests, contributing to its overall success.
• Showcasing India's Diplomatic Expertise: The declaration's significance lies in its ability to secure agreement from major world leaders, even in the midst of international power dynamics.
• Despite the absence of China's President Xi Jinping and Russian President Vladimir Putin at the summit, India demonstrated its diplomatic skill in bridging divides and fostering consensus among a diverse array of nations.

What is India-Middle East-Europe Economic Corridor (IMEEC)?

• One of the most significant outcomes of the G20 summit was the unveiling of the ambitious India-Middle East-Europe Economic Corridor, IMEEC.
• This corridor features a rail and sea route designed to facilitate the transportation of goods from India to Europe, passing through the UAE, Saudi Arabia, Jordan, and Israel.
• The project's implications extend beyond economic matters; it has the potential to reshape geopolitics in the future.
• Notably, it presents an intriguing challenge to China's Belt and Road Initiative, although this is just one aspect of its broader significance.
• The U.S. President hailed IMEEC as 'a truly monumental development,' emphasizing its transformative potential for all parties involved and the global community at large.
• The prompt endorsement of this project by the Israeli Prime Minister underscores Israel's eagerness to participate in this remarkable endeavor.

The Significance of IMEEC: A Game-Changer in Global Trade

• A Transformative Impact: IMEEC is poised to be a potential game-changer in the realm of global trade, offering an alternative to China's extensive strategic infrastructure investments.
• Enhancing Prosperity: This corridor promises to boost prosperity in the participating countries by facilitating the flow of energy and digital communications.
• It addresses the pressing need for infrastructure in lower- and middle-income nations, fostering economic growth.
• Strengthening Regional Ties: The improved infrastructure will not only drive economic growth but also promote closer ties among Middle Eastern countries.
• Countering China's Influence:
• IMEEC arrives at a juncture when Saudi Arabia and the UAE, traditional U.S. allies, have been strengthening their connections with China and the rapidly growing Eastern economies.
• China's role in the Middle East has expanded, including its involvement in brokering regional agreements.
• A Response to China's Belt and Road Initiative (BRI): Washington views IMEEC as an ambitious endeavor to counter China's Belt and Road Initiative, which aimed to enhance global connectivity with China's economy.
• Recent challenges, such as rising loan defaults and slowed investments, have cast doubts on the viability of China's BRI.
• Strategic Significance for India: For India, IMEEC holds immense geopolitical and trade importance.
• Concerns arose over China's connectivity projects in the region, and India faced hurdles, including Pakistan's refusal to grant overland access.
• India's attempts to establish credible connectivity through Iran faced challenges due to geopolitical complexities.
• IMEEC provides a solution by offering connectivity to both the Arabian Peninsula and Europe, addressing India's strategic concerns.

The Role of Israel in the Economic Corridor

• The U.S. initiative is designed to reshape the geoeconomic landscape of the Middle East through connectivity projects like IMEEC.
• The United States believes that these projects can address concerns among Gulf countries, reaffirm its commitment to the region, reduce tensions with Iran, and strengthen its leadership in the Gulf.
• However, achieving these strategic objectives hinges on advancing the normalization agenda outlined in the Abraham Accords, particularly with Saudi Arabia.
• Furthermore, the normalization of relations between Israel and Saudi Arabia is a critical prerequisite for the realization of this economic corridor.

Why Israel Wasn't Part of the Corridor Launch

• Unprecedented Middle Eastern Presence: India made history within the G20 by inviting the largest number of Middle Eastern countries ever to participate as guests in the summit.
• However, notably, India's strategic partner from the region, Israel, did not receive a similar invitation.
• Regional Considerations: India's decision to exclude Israel from the guest list may have been influenced by regional sensitivities, particularly regarding the preferences of Arab countries.
• U.S. Influence: The U.S. administration's avoidance of engaging with the Israeli Prime Minister for several months due to domestic politics may have played a role in Israel's role at the summit.
• Domestic Political Factors: In his statement following the corridor's launch, the Israeli Prime Minister expressed gratitude to the U.S. President but did not mention the Indian Prime Minister.
• This omission could be linked to Netanyahu's domestic political challenges and his previous inattention to U.S. foreign policy goals.

The Path Ahead

• Normalization of Saudi-Israel Relations: Saudi Arabia is open to ending its diplomatic boycott of Israel, but it comes with conditions.
• Saudis expect Israel to commit to the two-state solution and the well-being of the Palestinian people, even if the occupation persists for some time.
• Resolution of Israel-Palestine Conflict: Currently, on the sidelines of the UN General Assembly, Saudi Arabia, along with the Arab League and the EU, is collaborating with Egypt and Jordan to launch a 'Peace Day Effort.'
• This initiative aims to encourage Israelis and Palestinian leaders to find compromises.
• Achieving peace in the Israel-Palestine conflict is a formidable challenge, especially considering the rise of extremism on both sides.
• Waiting for Progress: The realization of the India-Middle East-Europe Economic Corridor may need to await progress in the Israel-Palestine situation.

The IMEEC plan faces a significant hurdle with Israel's aspiration for normalized relations with Saudi Arabia, which Riyadh does not currently endorse. Despite not formally joining, the new IMEEC effectively brings Saudi Arabia into the fold. With time, the corridor could create the economic and psychological conditions necessary for normalization.

Mains Question:

• Discuss the role of regional dynamics and international influences in the potential normalization of relations between Israel and Saudi Arabia, and how this could impact the progression of the India-Middle East-Europe Economic Corridor (IMEEC). (15M)