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The US and the European Union are poised to back the development of a new ship and rail corridor that will connect India to the Middle East and potentially extend even further, the Financial Times said on September 9, as New Delhi hosts leaders of the world’s 20 biggest economies for the annual G20 summit.
With the aim of challenging China’s economic influence in the region, the proposed infrastructure initiative will go across Saudi Arabia and the United Arab Emirates (UAE), the London-based newspaper said.
The plan is expected to be officially launched at an event on the sidelines of the G20 summit, through a memorandum of understanding agreed by leaders including US President Joe Biden and Prime Minister Narendra Modi, the report cited US officials as saying.
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Discussions regarding the project, which would also include a new undersea cable and energy transport infrastructure, have been on for several months.
With the launch of the MoU, these talks will move into a more formal phase. No binding financial commitments have been made at this stage, the daily quoted a senior western official involved in the talks as saying.
“[The corridor] will enable the flow of commerce, energy and data from here in India across the Middle East to Europe,” the report quoted Jon Finer, the US deputy national security adviser, as telling reporters on September 9.
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According to the daily, European Commission president Ursula von der Leyen is likely to say at the launch of the project, “This is nothing less than historic. It will be the most direct connection to date between India, the Arabian Gulf and Europe.”
For the US, the proposed project is likely to serve as a strategic countermeasure to China’s expanding influence in the region and comes at a time when Washington’s traditional Arab allies, including the UAE and Saudi Arabia, are strengthening their relationships with China, India, and other Asian powers.
The project could potentially help the US maintain its presence and influence in the region amid shifting geopolitical dynamics, the report said.
“China is one factor. The US is also trying to refocus attention on the region, to reassure traditional partners and to maintain influence,” a person briefed on the negotiations told FT.
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The EU’s role in the agreement was discussed during von der Leyen’s visit to Abu Dhabi on September 7 when she held discussions with UAE President Mohammed bin Zayed al-Nahyan.
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