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Huge loss to this Muslim country due to India’s new project! Russia’s tension will also increase – india middle east europe economic corridor islamic country egypt will lose revenue saudi arabia uae are part of it tlifwe

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During the G-20 summit held under the chairmanship of India, an agreement has been reached between India, Middle East and European countries regarding a mega project. The name of this project is ‘India-Middle East-Europe Economic Corridor’. With the help of this corridor, India will be able to reach Europe through rail and ship. This corridor is also being considered as the answer to China’s ‘Belt and Road Initiative’ (BRI).

Apart from India, America, Saudi Arabia, United Arab Emirates, European Union, Italy, France and Germany are also involved in this project. According to Israel’s ‘Economic Globes newspaper’, Egypt will have to suffer huge economic losses due to the construction of this corridor. Because the construction of the corridor will reduce the freight traffic passing through the Suez Canal, which is likely to cause a huge decline in Egypt’s earnings.

10 percent of total trade through Suez Canal

The newspaper quoted Yoel Guzansky, an expert on Gulf politics and security and a senior researcher at Israel’s Institute for National Security Studies (INSS), as saying, “Ten percent of the world’s oil and seven percent of its oil trade passes through the Suez Canal. “And Egypt currently controls the Suez Canal. But the India-Middle East-Europe Economic Corridor will impact global oil trade, causing huge losses to Egypt’s revenues.”

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The total earnings from the Suez Canal in the financial year 2022-23 were recorded at Rs 9.4 billion, which is much more than last year’s earnings of $ 7 billion. India-Middle East-Europe Economic Corridor: This is also a matter of concern for Egypt because Egypt has a debt of about 12.5 billion dollars to the International Monetary Fund (IMF) and its economic condition is already bad. In such a situation, the income from Suez Canal is important for Egypt.

Joel Guzansky says that the reduction in Europe and India’s dependence on the Suez Canal and the savings in time taken to transport goods due to the construction of the India-Middle East-Europe Economic Corridor could be a blow to Egypt.

Shock to Russia and Iran also

According to Israeli experts, this corridor will harm not only Egypt but also the International North-South Transport Corridor, a project of Russia and Iran. Because India is included in this 7200 km long corridor.

In fact, India is also included in the India-Middle East-Europe Economic Corridor. In such a situation, it will not be easy for India to live together in two parallel projects. In the year 2000, Russia, Iran and India agreed on the International North-South Transport Project. This corridor will connect the Indian Ocean and the Persian Gulf with the Caspian Sea through Iran. Which will reach Northern Europe via Russia.

Israel’s political situation may affect the project

Political expert Gunjaski further said that the India-Middle East-Europe Economic Corridor project is expected to start from the port of Piraeus in Greece. Which will go to the Israeli port Haifa via sea. Then the railway route will reach Saudi Arabia and United Arab Emirates via Jordan. Then Mumbai will be connected to it through water route.

However, he also said that Israel’s political situation could affect the future of the project. Because such a project would require huge investment from Israel. In such a situation, Prime Minister Netanyahu will have to take consent from his coalition as well as opposition parties. But it will not be easy for Israeli PM Netanyahu to agree with leaders like Bezalel Smotrich and Itamar Ben-Gavir.

What is India-Middle East-Europe Economic Corridor?

This agreement between India, Middle East and European countries is actually an infrastructure project. No figures have been revealed yet as to how much this project will cost. But it is estimated that $20 billion may be spent on this. Under this project, everything from ports to rail network will be prepared.

This corridor is divided into two parts. First- Eastern Corridor, which will connect India with Gulf countries. Second- Northern Corridor, which will connect the Gulf countries to Europe. Along with the railway line, this project will also have electricity cable, hydrogen pipeline and a high-speed data cable.

This post originally appeared on www.aajtak.in

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