India, US, Gulf Nations to Lauch Major Infra Project: Why it is Significant & How it Counters China’s BRI | Explained

India, US, UAE, Saudi Arabia, and Europe are set to unveil a major infrastructure initiative of a railway and shipping corridor that will enhance commerce, energy and digital connectivity on the sidelines of the G20 summit, US principal deputy national security advisor Jon Finer said on Saturday.

Prime Minister Narendra Modi and US President Joe Biden intend to reveal the project within the framework of the Partnership for Global Infrastructure Investment.

This initiative, comprising a rail and shipping corridor, is aimed at facilitating increased trade between the participating nations, including the exchange of energy products, a report in Associated Press said.

The project is seen as counters to China’s own belt and road initiative that sought to connect more of the world to that country’s economy.

Why is the Project Significant?

As per reports, the Gulf nations and Arab countries will be connected via a network of railways which shall be connected to India via shipping lanes from ports in the Western Asian region. The initiatives will significantly reduce shipping times, cost and the use of diesel and would make trade faster and cheaper.

The deal would involve ship transit between India and Saudi Arabia, train network through Saudi Arabia and the UAE and likely to Jordan; and ship transit to Turkey and onward from there by train, a report in Times of Israel said.

The corridor would increase prosperity among the countries involved by increasing the flow of energy and digital communications. The project would help to address the lack of infrastructure needed for growth in lower- and middle-income nations. It could also help “turn the temperature down” on “turbulence and insecurity” coming out of the Middle East.

The US is also looking into a separate proposal to speed up land-trade routes between Gulf Arab countries and the Mediterranean Sea, according to Bloomberg.

Countering China

The US wants to push the project as its key initiative in the Middle East to counter China’s growing influence in the region. The project is being projected as a substantial response to China’s Belt and Road Initiative.

Though the Middle East is not only a key part of China’s Belt and Road Initiative, Beijing has been playing a crucial role in mediating Saudi and Iran and Saudi and Houthi militants in Yemen.

With the project, the US is portraying itself as an alternative partner for and investor in developing countries, especially in the Indo-Pacific region.

Israel to be Part of Project?

The project was supposed to be implemented under the I2U2 framework (which includes India, Israel, UAE, and US). However, it will begin without Israel because the efforts at normalisation between Israel and Saudi is still work in progress.

Though Israel has not been included as a part of this initiative currently, but it would be added to the project at a later stage since the Biden administration seeks a broader diplomatic deal in the Middle East that would have Saudi Arabia recognise Israel.