IMEC vs BRI: China’s BRI challenged by India’s IMEC! Will the world’s supply chain change?

Now in the world, competition not only for arms or military power, but also for trade corridors and supply chains has intensified. On one hand, China’s Belt and Road Initiative (BRI) has expanded its network to more than 150 countries in Asia, Africa and Europe in the last decade, while on the other hand, India, America, European Union (EU) and Gulf countries have together India Middle East–Europe Economic Corridor (IMEC) has been started. This project is also an attempt to balance China’s growing economic influence while giving India a fast, safe and low-cost trade route to Europe. In such a situation, the big question is whether India’s IMEC will be able to give a tough challenge to BRI in future and become the new center of the world’s supply chain?

Why did IMEC become the center of discussion in the world?

Several countries, including India, the US, the European Union (EU), Saudi Arabia and the United Arab Emirates (UAE), had announced the India–Middle East–Europe Economic Corridor (IMEC) during the G20 summit in September 2023. It is being considered not just as a new trade route, but as a project that will change the global supply chain, energy security and geopolitical balance. This is why IMEC is being seen as its biggest strategic option.

What is IMEC and how will its route work?

IMEC is a multi-modal economic corridor that will link sea routes, railway networks, ports, digital connectivity, power grids and green hydrogen pipelines. Container ships will reach UAE from western ports of India. From there the goods will go through railways to Haifa port in Saudi Arabia, Jordan and Israel. After this, it will be transported to Greece, Italy, France and other European countries by sea route. Its objective is to create a fast, safe and low-cost trade route between India and Europe.

How different is IMEC from BRI?

China started the Belt and Road Initiative (BRI) in 2013. Today it has reached more than 150 countries in Asia, Africa and Europe. The focus of BRI is to increase China’s global influence through large-scale road, rail, port and energy projects.

In contrast, IMEC’s ​​model is based on transparent investment, private participation, environmental standards and sovereignty of partner countries. This is the reason why it is being considered as a democratic alternative to China’s so-called ‘debt trap diplomacy’.

Can IMEC change the world’s supply chains?

Experts believe that IMEC, once fully prepared, can bring a big change in trade between India and Europe. According to the European Commission, this corridor can reduce freight time by about 40%, while logistics costs are likely to reduce by 25-30%. This will provide huge benefits to Indian exporters and will also provide alternative supply chains to global companies.

Why is IMEC a strategic project for India?

IMEC connects India directly to Gulf countries and Europe. Most importantly, this project bypasses Pakistan and Iran. While China is increasing its strategic presence in Pakistan through CPEC, IMEC gives India a new economic and strategic role from the Indian Ocean to the Mediterranean Sea. With this, India can become a major center of the global supply chain.

Is this just a business project?

No. IMEC is not just a freight route. It also includes green hydrogen pipelines, electricity transmission networks, high-speed digital connectivity and submarine fiber optic cables. That means future energy, data and digital economy will also be connected through this corridor. With this, India can become a major partner in clean energy and digital infrastructure.

What are the biggest challenges facing IMEC?

Although the potential of IMEC is huge, the challenges are also no less. Its biggest challenges are the ongoing geopolitical tension in West Asia, Israel-Hamas conflict, the need to raise investment of up to 500-600 billion dollars for the project and policy coordination between different countries. Without removing these obstacles, the pace of the project may be affected.

Will IMEC be able to challenge China’s BRI?

China has had the First Mover Advantage in BRI for almost a decade and its network already extends to many continents. Therefore, it will not be easy for IMEC to match BRI in the near future. But with transparent investment, democratic partnerships, modern digital infrastructure and low-cost supply chains, IMEC could become the strongest alternative to BRI in the coming years.

What does this mean for India?

If IMEC is successful, India will not remain just an exporting country, but can become a global logistics and supply chain hub connecting Asia, the Middle East and Europe. This will provide huge benefits to trade, investment, employment, port development, digital connectivity and energy security. This is the reason why IMEC is being considered one of the most important economic and geopolitical projects of India in the 21st century.