IMEC a modern silk route will help cut logistics cost by 30%: Piyush Goyal

By Admin

18 Apr, 2025

In a visionary address, Union Commerce Minister Piyush Goyal presented the India-Middle East-Europe Economic Corridor (IMEC) as a modern-day Silk Route that promises to redefine global trade dynamics. He emphasized that IMEC has the potential to reduce logistics costs by up to 30% and transportation time by 40%, positioning it as a game-changing project for global commerce.

Seamless Connectivity Across Continents

IMEC aims to create seamless trade linkages across Asia, the Middle East, and Europe, with future plans to extend connectivity to Africa. By integrating railways, roadways, energy pipelines, and undersea cables, IMEC seeks to offer a sustainable and efficient trade infrastructure. The corridor is more than just a trade route—it represents a bridge between civilizations, promoting not only economic cooperation but also cultural and diplomatic ties.

Sustainability and Innovation at the Core

Described as a “partnership of equals”, IMEC prioritizes sustainability and digital innovation. Minister Goyal highlighted India's ongoing discussions with countries like Singapore, Saudi Arabia, and the UAE to facilitate clean energy transmission, marking the corridor as a green and future-proof solution to today’s infrastructure needs.

He emphasized, “This isn’t just about trade routes; it’s about linking civilizations while cutting costs and carbon footprints.”

Public-Private Partnerships – The Driving Force

Goyal strongly advocated for a Public-Private Partnership (PPP) model to ensure the corridor's success. He noted that governments alone cannot deliver such an ambitious vision and urged private stakeholders to take the lead in planning for cost efficiency and innovation. “The private sector’s expertise will ensure smarter solutions and financial viability,” he added.

Beyond Physical Infrastructure – Regulatory Connectivity

A major emphasis was placed on Regulatory Connectivity—streamlining trade processes, customs procedures, and cross-border paperwork. Goyal cited India’s collaboration with the UAE as a working example and stressed the need for interoperable systems, digitisation, electric vehicle charging networks, and synchronised regulations.

To enable smooth financial transactions across borders, he suggested adopting systems like India’s Unified Payments Interface (UPI) as a model for a common digital payment ecosystem.

Financing the Future – A Call for Innovative Solutions

To bring IMEC to life, Goyal called for Innovative Financing Models. He proposed the involvement of multilateral financial agencies and suggested exploring options such as green bonds and dedicated IMEC Bonds. These instruments can help fund the corridor in a sustainable, long-term manner.

A Sustainable Alternative to Belt and Road

As China’s Belt and Road Initiative (BRI) comes under global scrutiny, IMEC positions itself as a sustainable, inclusive, and transparent alternative. Built on mutual trust, economic parity, and green principles, IMEC stands as a beacon of hope for global connectivity and cooperation.

Conclusion

The India-Middle East-Europe Economic Corridor is not just a logistics project—it’s a strategic roadmap to economic integration, regional development, and global sustainability. With Minister Piyush Goyal at the helm and a strong vision in place, IMEC could very well become the 21st-century Silk Route that changes the face of international trade.