– Announced at the G20 summit in New Delhi (September 2023).
– Expected to reduce transit time by 40% and costs by 30% compared to transport via Suez Canal.
– U.S. President Donald Trump signed an executive order revising tariffs for imports from 70 countries,including India.- India’s tariff rate was hiked to 25%, higher than most neighboring countries like Bangladesh (20%), Pakistan (19%), Afghanistan (15%), Myanmar (40%).
The forthcoming visit by senior U.S. officials underscores sustained efforts toward enhancing collaboration on impactful projects like the IMEC corridor, which coudl substantially transform regional connectivity between Asia, the Middle east, and Europe. Economically beneficial outcomes like reduced transit times and logistics costs highlight its potential as a strategic priority for India.
However, ongoing tariff revisions underscore challenges within India’s trade relations with major partners such as the U.S., potentially complicating economic diplomacy even during broader collaborative efforts. This duality reflects both promise in infrastructure partnerships and concerns about emerging structural cracks in bilateral ties that demand calibrated engagement from Indian policymakers.