Prime Minister Narendra Modi’s visit to the United States this week is a global implication for talks with President Donald Trump. The upcoming discussion between the two leaders will compete with defense cooperation, business relations and China’s growing economic and military influence.
One of the major items on the agenda, the Indo-Midil East-Europe Economic Corridor (IMEC), will be a multi-national infrastructure initiative, aimed at an option of China’s Belt and Road Initiative (BRI). This ambitious project is an important player Gautam Adani’s Adani group, a company that has rapidly expanded his footprint in major infrastructure areas, from ports and power plants to defense technology.
IMEC: reaction to China’s belt and road initiative
The Indo-Central East-Europe Economic Corridor (IMEC) is a massive infrastructure project designed to connect India with Europe through the Middle East. Unlike China’s BRI, which has been criticized for debt-net diplomacy, IMEC is seen as a market-driven, transparent initiative that ensures that the participating nations maintain control over their infrastructure .
The extensive strategic partnership of $ 400 billion China-Iran has raised concerns among global players. Partnership involves widespread cooperation in energy, trade and military domains, possibly China has a strong leg in the Middle East. This has further intensified India’s push for the construction of alternative supply chains and trade routes – one of the main motivations behind the IMEC.
Some of the major features of the IMEC are 4,500 km of trade routes connecting India, United Arab Emirates, Saudi Arabia, Israel and Europe. The corridor transit will cut significantly in time compared to traditional sea routes. Partners will also benefit from new ports, rail networks and energy projects.
Currently, significant marine chokpoints such as Malacca Strait, The Strait of Hormuz, and Bab L-Mandabs are rapidly sensitive to Chinese effects. According to a Center for International Maritime Security Report, China indirectly supports Yemen’s Houthi rebels by purchasing large amounts of Iranian oil, which gives money to Iran’s Islamic Revolutionary Revolutionary Guard Corps (IRGC). IRGC, in turn, supplies the holes with weapons, some of which are reportedly Chinese-made.
The role of Adani Group in IMEC
The Adani group has huge interests in energy, infrastructure and logistics. Group strategic investment closely aligns closely with India’s foreign policy objectives and directly challenges the dominance of China’s infrastructure.
Acquisition of Adani Group of 70 percent stake in Haifa port in Israel is an important component of IMEC. This step not only strengthens India-Israel relations, but also provides India to establish a leg in the Mediterranean Sea.
The Israel-India defense trade is priced more than $ 10 billion annually, with private sector engagement and strengthening the relationship.
The group is also actively receiving strategic ports in Indo-Pacific. Unlike China’s state-controlled model, Adani works as an independent private entity.
Beyond the ports, the company is expanding in military drone production, semiconductor and clean energy, areas, which are central for India’s economic future. In November last year, the company announced an investment of $ 10 billion in the US energy infrastructure, making 15,000 jobs in the United States.
Indo-American Bilateral Relations
PM Modi’s visit to America amid concerns over Trump’s controversial trade policies. Last month, he announced an additional 10 percent tax on 25 percent tariffs on Canadian and Mexican imports and an additional 10 percent tax on Chinese goods, making speculation about possible trade friction with India.
India and the United States have continuously deepened their military and defense cooperation over the last two decades, inspired by the influence of Indo-Pacific and beyond China. The upcoming Trump-Modi meeting is expected to focus on several areas of defense cooperation.
India wants access to advanced American military technology including jet engine manufacture, drone technology and cyber defense systems. The two countries have expanded military cooperation through exercises such as Malabar (a tripartite naval exercise with Japan). Along with increasing cyber threats from state and non-state actors, cyber security cooperation will also be a topic of discussion.
(Disclaimer: New Delhi Television AMG Media Networks Limited is a subsidiary of a Adani group company.)
