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Hindustan Times
4 days ago
- Business
- Hindustan Times
IMEC offers hope as Trump tariffs threaten Indian markets
Two distinctly different yet related events took place on August 5-6, 2025, with regards to India. On the one hand, US President Donald Trump initially announced a tariff of 25% on Indian goods being exported to the US and then added another 25% the next day as a 'punishment' to India for supporting Russia in its war against Ukraine by buying cheap crude oil. Concurrently, the first official meeting of the eight signatory countries of the India-Middle East-Europe-Economic Corridor (IMEC) was held in Delhi, hosted by the National Security Council Secretariat. Along with the other country representatives, the US was represented by Ricky Gill, who is the special assistant to the US President for national security affairs and the US National Security Council's senior director for South and Central Asia. The aim of the meeting was to find a way to kickstart the long delayed economic corridor, the IMEC. Donald Trump (Bloomberg File Photo) What does IMEC aim to achieve—for a start, closer integration of the three regions (India, West Asia and Europe) through trade and better connectivity. With Trump hitting India hard with tariffs, there were some speculation that the American delegation may not travel to India, but that did not happen and the delegation participated in the talks, the first of its kind since the announcement of IMEC on the sidelines of India's G20 Summit in Delhi in September 2023. IMEC is one of the most transformative and ambitious projects announced with regards to economic integration and trade connectivity. In its concept, it is a bold vision to connect India with Europe across the deserts of the Arabian Peninsula. It envisions a multi-modal economic corridor involving multiple businesses, integrating railways, ports, highways, energy networks, and digital infrastructure to enhance trade, investment, and connectivity across the continents. The Memorandum of Understanding (MoU) on the project was signed by India, the US, Saudi Arabia, UAE, France, Germany, Italy, and the European Union (EU). The proposed structure of the IMEC has three distinct sections. The eastern section links India with West Asia via sea links, the central section is the overland route across the West Asian region, culminating at the port of Haifa on the Mediterranean coast in Israel. The western leg of the corridor is sea-bound, where the containers have to be put back on ships in Haifa, to be transported to various ports in Europe. The success of IMEC depends upon developing a seamless connectivity network of ports, ships and rails. A digitally connected, uniform and fully integrated customs and regulatory framework is the backbone for success of such a project. In addition to transporting containers, IMEC also plans to include infrastructure for electricity transmission, digital connectivity, as well as pipelines for clean hydrogen export. When implemented in full, it promises to unlock new opportunities of multi-dimensional trade through multi-modal transport linkages across regions that have traditionally been close trade partners. It has the potential to facilitate faster and more efficient movement of goods, bypassing existing bottlenecks, reducing shipping delays, lowering greenhouse gas emissions, and cutting costs. There is even talk of developing a southern leg in the IMEC later, which would then link up with key connectivity corridors in Africa to facilitate two-way trade with Africa too For India, in particular, IMEC represents a strategic vision beyond physical infrastructure and is an instrument for building a more connected, resilient, and inclusive global order. For India, it aligns with its Act East and Link West policies and reinforces its role as a bridge between regions, enhancing both economic engagement and geopolitical influence. As India charts its course towards becoming a developed nation and a $30 trillion economy by 2047, infrastructure corridors such as IMEC are vital drivers. Considering China's current dominance in global manufacturing, which is at 30% versus India's 3% share, India has a lot of ground to cover. For India to become the 'factory of the world,' industrial corridors would need to be scaled up, manufacturing capacity boosted, and these hubs must be linked through strategic infrastructure like IMEC. In terms of trade between the Europe and India, IMEC can be an economic game changer and an opportunity to strengthen strategic partnerships. The president of the European Commission, Ursula von der Leyen, during her visit to India in March 2025, had pitched for the IMEC as an important cornerstone for enhancing India-EU trade. Earlier, the French President had described IMEC as a 'fabulous catalyst' for concrete projects and investments while pitching Marseille port as one of the entry points for IMEC during PM Modi's visit to France in February 2025 for the Global AI Summit. The enthusiasm comes from the fact that the EU is India's largest trading partner, accounting for €124 billion worth of trade in goods in 2023 or 12.2% of total Indian trade, surpassing the US (10.8%) and China (10.5%). The EU is also the second-largest destination for Indian exports (17.5% of the total) after the US (17.6%). On the other hand, however, India is the EU's 9th largest trading partner, accounting for 2.2% of the EU's total trade in goods in 2023, well behind the US (16.7%), China (14.6%), or the UK (10.1%). Within this overall trade figures, trade in goods between the EU and India has increased by almost 90% in the last decade, whereas the trade in services between the EU and India reached €50.8 billion in 2023, up from €30.4 billion in 2020. With this considerable volume of trade, the EU and India are looking for ways to enhance the trade potential further. Both sides are also negotiating an ambitious FTA (free trade agreement) which promises to increase trade beyond € 200 billion. One key issue that could help reach the agreement on FTA is a faster, more secure, and cheaper transit route, which the IMEC promises. One of IMEC's most unique dimensions is its integration of green hydrogen into the corridor's architecture. The ability to transport green hydrogen across borders offers a major breakthrough for the global clean energy transition. India's twin objectives—energy independence by 2047 and net-zero emissions by 2070—are closely tied to the successful deployment of renewable energy technologies. Green hydrogen emerges as a transformative energy carrier within this shift, offering long-duration energy storage, a replacement for fossil fuels in hard-to-abate industrial sectors, and clean mobility solutions. Indian companies have taken huge strides in developing infrastructure for producing green hydrogen. Europe is looking at reliable markets to offer green fuel as they strive to achieve net zero emissions. IMEC offers India a unique opportunity to position itself as a global hub for green hydrogen. India has committed $2.5 billion toward building a robust green hydrogen ecosystem, with companies like Adani Group, Larsen & Toubro, and ReNew Energy Global leading infrastructure and technology deployment. India has also emerged as the leader in producing and promoting solar energy. It is closely linked to India's call for establishing One Sun, One World, One Grid (OSOWOG) initiative which envisions a globally interconnected solar grid, enabling real-time cross-border energy sharing. This model benefits India by reducing dependence on costly storage systems while maximising the efficiency of renewable generation. This too presents a unique opportunity for India to deepen its economic integration with the region as also deepen climate preservation, promote energy interdependence, and generate industrial and financial synergies. Also, the combination of a faster route using IMEC for perishable, fast moving and costly goods while keeping the option of Suez Route running for bulk products like crude oil can become a win-win strategy for all stakeholders. When overlapped with the economic benefits of transporting green hydrogen, solar energy, high speed internet etc, IMEC can be a game changer in years to come. Trump tariffs may have presented a challenge for India but it is also an opportunity to seek diversified and reliable partnerships. Europe too, which is reeling from tariff threats from the US and had to submit to its tariff demands, is looking at India as a reliable partner. Other signatories of IMEC, along with some potential additions like Egypt, Oman, Israel, Jordan, Cyprus and Greece already have close strategic ties with India. IMEC offers the perfect link for a faster, secure and more efficient between India and these countries. The fact that the project brings together economically strong, politically influential, and ideologically compatible countries, offering India a vital opportunity to cement its presence and deepen its influence in the region, is an added advantage. The lessons from recent global shocks—including the Covid pandemic, the Russia-Ukraine war, Gaza War and the tariff war under the Trump administration highlight the urgent need for and secure connectivity options and resilient supply chains. IMEC offers a critical response to these disruptions by providing an alternative and reliable trade route. With the right mix of infrastructure investment, diplomatic engagement, and institutional coordination, IMEC can become a cornerstone of 21st-century connectivity, linking continents and creating new avenues for shared prosperity. For India specifically, IMEC offers the perfect opportunity to look beyond the US tariff war, to explore all necessary steps to safeguard its national interests and economic security. This article is authored by Rajeev Agarwal (retd), senior research consultant, CRF, Chintan Research Foundation, New Delhi.
News18
02-08-2025
- Business
- News18
Top Trump Advisor To Visit India For IMEC Summit Amid Tensions Over Tariffs, Russian Ties
Last Updated: India and US ties have witnessed tensions recently over New Delhi's relations with Moscow and its energy and defence partnership. Amid ongoing trade negotiations and the announcement of 25% tariffs on exports to the US, Donald Trump's top advisor on South Asia – Ricky Gill – is expected to visit New Delhi for the India Middle East Europe Economic Corridor (IMEC) Summit. The visit is on the cards despite recent tensions between the two countries over trade negotiations and Trump's tirade over New Delhi's energy and defence ties with Moscow. Gill, who is serving as the Special Assistant to Trump for National Security Affairs and the US National Security Council's Senior Director for South and Central Asia, is set to meet top Indian officials and representatives from several European countries, Hindustan Times reported. He has been invited by India's National Security Council Secretariat (NSCS) to hold discussions on the future of the delayed India-Middle East-Europe Economic Corridor. The NSC, operating from the White House, plays a key role in shaping and coordinating US military, economic, and diplomatic strategies across various government departments and agencies. IMEC was launched on the sidelines of the G20 Summit in India in September 2023 and is an economic and trade corridor linking India to Europe through the Middle East. India, the United States, the European Union, Saudi Arabia, the United Arab Emirates, France, Germany, and Italy were the main signatories of the 2023 Memorandum of Understanding (MoU) that officially launched the IMEC. Efforts to operationalise the IMEC connectivity corridors have faced significant setbacks following the outbreak of conflict in West Asia after the October 7 attacks in Israel. 'It has definitely been a source of concern for us, and the kind of expectation we had when the agreement was signed in September, we have had to adjust it a bit," EAM Jaishankar had said last year. view comments First Published: Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
Sharjah 24
05-07-2025
- Business
- Sharjah 24
BRICS nations to denounce Trump tariffs
Emerging nations representing about half the world's population and 40 percent of global economic output are set to unite over what they see as unfair US import tariffs, according to sources familiar with summit negotiations. Since coming to office in January, Trump has threatened allies and rivals alike with a slew of punitive tariffs. His latest salvo comes in the form of letters due to be sent starting Friday informing trading partners of new tariff rates expected next week on July 9. Diplomats from 11 emerging nations, including Brazil, Russia, India, China and South Africa, have been busy drafting a statement condemning the economic uncertainty. Any final summit declaration is not expected to mention the United States or its president by name. But it is expected to be a clear political shot directed at Washington. "We're anticipating a summit with a cautious tone: it will be difficult to mention the United States by name in the final declaration," Marta Fernandez, director of the BRICS Policy Center at Rio's Pontifical Catholic University said. This is particularly the case for China, which has only recently negotiated with the US to lower steep tit-for-tat levies. "This doesn't seem to be the right time to provoke further friction" between the world's two leading economies, Fernandez said. Xi no show Conceived two decades ago as a forum for fast-growing economies, the BRICS have come to be seen as a Chinese-driven counterbalance to Western power. But the summit's political punch will be depleted by the absence of China's Xi Jinping, who is skipping the annual meeting for the first time in his 12 years as president. "I expect there will be speculation about the reasons for Xi's absence," said Ryan Hass, a former China director at the US National Security Council who is now with the Brookings Institution think tank. "The simplest explanation may hold the most explanatory power. Xi recently hosted Lula in Beijing," said Hass. The Chinese leader will not be the only notable absentee. Russian President Vladimir Putin is also opting to stay away, but will participate via video link, according to the Kremlin. Hass said Putin's non-attendance and the fact that India's prime minister will be a guest of honor in Brazil could also be factors in Xi's absence. "Xi does not want to appear upstaged by Modi," who will receive a state lunch, he said. "I expect Xi's decision to delegate attendance to Premier Li (Qiang) rests amidst these factors." Still, the Xi no-show is a blow to host President Luiz Inacio Lula da Silva, who wants Brazil to play a bigger role on the world stage. In the year to November 2025, Brazil will have hosted a G20 summit, a BRICS summit, and COP30 international climate talks, all before heading into fiercely contested presidential elections next year, in which he is expected to run. Middle path Iran's President Masoud Pezeshkian, whose nation is still reeling from a 12-day conflict with Israel is also skipping the meeting. A source familiar with the negotiations said the BRICS countries were still in disagreement over how to respond to the wars in Gaza and between Iran and Israel. Iranian negotiators are pushing for a tougher collective stance that goes beyond referencing the need for the creation of a Palestinian state and for disputes to be resolved peacefully. Artificial intelligence and health will also be on the agenda at the summit. Original members of the bloc Brazil, Russia, India, and China have been joined by South Africa and, more recently, by Saudi Arabia, Iran, the United Arab Emirates, Egypt, Ethiopia and Indonesia. Analysts say that it has given the grouping more potential international punch. But it has also opened many new fault lines. Brazil hopes that countries can take a common stand at the summit, including on the most sensitive issues. "BRICS (countries), throughout their history, have managed to speak with one voice on major international issues, and there's no reason why that shouldn't be the case this time on the subject of the Middle East," Brazil's Foreign Minister Mauro Vieira told AFP.
Business Times
05-07-2025
- Business
- Business Times
Brics nations to gather without Xi, Putin
[RIO DE JANEIRO] Brics leaders will meet in Rio de Janeiro from Sunday (Jul 6), with the bloc depleted by the absence of China's Xi Jinping, who is skipping the annual summit of emerging economies for the first time in 12 years. The grouping – often seen as a Chinese-driven counterbalance to Western power – meets as members face imminent and costly tariff wars with the United States. Conceived two decades ago as a forum for fast-growing economies, the Brics have come to be dominated by Beijing, which grew much faster and larger than the rest. China has not said why Xi will miss the summit, a first since he became president in 2012. 'I expect there will be speculation about the reasons for Xi's absence,' said Ryan Hass, a former China director at the US National Security Council who is now with the Brookings Institution think tank. 'The simplest explanation may hold the most explanatory power. Xi recently hosted Lula in Beijing,' said Hass. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up The Chinese leader will not be the only notable absentee. War crime-indicted Russian President Vladimir Putin is also opting to stay away, but will participate via video link, according to the Kremlin. So too will Iran's President Masoud Pezeshkian, whose nation is still reeling from a 12-day conflict with Israel. Hass said that Putin's non-attendance and the fact that India's prime minister will be a guest of honour in Brazil could also be factors in Xi's absence. 'Xi does not want to appear upstaged by Modi,' who will receive a state lunch, he said. 'I expect Xi's decision to delegate attendance to Premier Li (Qiang) rests amidst these factors.' Still, the Xi no-show is a blow to host President Luiz Inacio Lula da Silva, who wants Brazil to play a bigger role on the world stage. In the year to November 2025, Brazil will have hosted a G20 summit, a Brics summit, and COP30 international climate talks, all before heading into fiercely contested presidential elections next year. Lula is expected to run again for an unprecedented fourth term in office. Cautious tone For Brics leaders who do make the trip to the 'cidade maravilhosa', the marvellous city, the economy will be top of the agenda. Lula on Friday defended the idea of finding an alternative to the US dollar for trade among Brics nations. 'I know it is complicated. There are political problems,' Lula said at a Brics banking event. 'But if we do not find a new formula, we are going to finish the 21st century the way we started the 20th.' But with many, including China, locked in difficult trade negotiations with the United States, they may be wary of roiling the mercurial US president. US President Donald Trump has warned that starting on Friday, countries will receive letters stating the amount their exports to the United States will be tariffed. He has also threatened to impose 100 per cent tariffs on countries that challenge the US dollar's international dominance. 'We are anticipating a summit with a cautious tone: it will be difficult to mention the United States by name in the final declaration,' Marta Fernandez, director of the Brics Policy Center at Rio's Pontifical Catholic University, said. This is particularly the case for China, she said: 'This doesn't seem to be the right time to provoke further friction' between the world's two leading economies. On a range of other issues, from the Middle East to climate, Brics members will have to overcome deep-seated differences. Consensus-building difficult Original members of the bloc Brazil, Russia, India, and China have been joined by South Africa and, more recently, by Saudi Arabia, Iran, the United Arab Emirates, Egypt, Ethiopia, and Indonesia. Analysts say that it has given the grouping more potential international punch. The Brics now represent nearly half of the world's population and 40 per cent of its GDP. But it has also opened many new fault lines, not least over how strongly to challenge the United States. This expansion 'makes it all the more difficult to build a strong consensus,' said Fernandez. Brics members did not issue a strong statement on the Iran-Israel conflict and subsequent US military strikes due to their 'diverging' interests, according to Oliver Stuenkel, a professor of international relations at the Getulio Vargas Foundation. Brazil, nevertheless, hopes that countries can take a common stand at the summit, including on the most sensitive issues. 'Brics (countries), throughout their history, have managed to speak with one voice on major international issues, and there's no reason why that shouldn't be the case this time on the subject of the Middle East,' Brazil's Foreign Minister Mauro Vieira said. Artificial intelligence and global governance reform will also be on the menu. AFP
United News of India
17-06-2025
- Politics
- United News of India
Left G7 summit early not because of Iran, but something much bigger: Trump
Calgary, June 17 (UNI) US President Donald Trump said on Tuesday he left the G7 summit early not to work on a ceasefire between Iran and Israel, but for something "much bigger than that." Late on Monday, White House Press secretary Karoline Leavitt said that Trump will leave the G7 Summit in Canada earlier than it was scheduled because of the situation in the Middle East. Trump, in turn, ordered the US National Security Council to be ready to meet in the White House Situation Room upon his return to Washington. Reuters later reported that French President Emmanuel Macron suggested that the United States had offered to help achieve a ceasefire. "Publicity seeking President Emmanuel Macron, of France, mistakenly said that I left the G7 Summit, in Canada, to go back to D.C. to work on a "ceasefire" between Israel and Iran. Wrong! He has no idea why I am now on my way to Washington, but it certainly has nothing to do with a ceasefire. Much bigger than that. Whether purposely or not, Emmanuel always gets it wrong. Stay tuned!" Trump wrote on Truth Social. UNI SPUTNIK ARN
