As many as 28 nations bordering the Mediterranean Sea were recently represented in a new partnership between India and the region. Businesses from both sides explored potential cooperation in defence production, maritime and manufacturing, among others.
Ancient synergies have marked the traditional relationship between India and countries on the Mediterranean rim. The Mediterranean is a historically significant region that has facilitated land and maritime trade between the East and West for millenniums.
A diverse region spread across the three continents of Europe, Asia and Africa, the 28 countries stand at different levels of economic development.
Together, they comprise a critical group facilitating approximately 25 percent of global maritime trade. The sea economies have a collective GDP of approximately USD 10.5 trillion. India’s total trade with the region was about USD 76.2 billion in 2023-24 across three major sub-regions of Mediterranean Europe, West Asia and North Africa.
Similarly, India has also played a crucial role in facilitating global trade with its central location in the Indo-Pacific. As India becomes a USD 5 trillion economy in the coming years and a leading global growth engine, it seeks to build new relationships in the world. It is in this context that India emerges as a crucial partner and friend of the Mediterranean nations.
A continuation of India and the Mediterranean’s historic bilateral trade ties would be a fruitful partnership for both regions. This is set to emerge as a multidimensional cooperation agenda, embracing various sectors.
To begin with, one key initiative to facilitate the partnership is the India-Middle East-Europe Economic Corridor (IMEC). Announced during the 2023 G20 Summit held in New Delhi, IMEC is envisaged as a dedicated trade corridor linking India and the Mediterranean economies through a combination of land and sea routes. Converging technology and sustainability-led practices, it promises to significantly improve the connectivity and commerce between India and the Mediterranean, and will increase prosperity in both regions.
The IMEC is expected to build multimodal transport infrastructure, including ports and railways, to enhance trade. Alongside, the region would also create industrial infrastructure to attract global value chains. Such proposed construction activity will benefit businesses of both sides.
Second, as two economic regions with significant presence in maritime trade, the blue economy emerges as a vital cooperation sector between India and the Mediterranean nations.
The strategic location of Indian and Mediterranean ports makes them key facilitators of global commerce. Joint development of maritime infrastructure along the coasts of both the Mediterranean Sea and Indian Ocean could deepen ties, cultivate value chains for manufactured goods and improve the efficiency of the IMEC.
The two sides can also work together in shipping and ship construction. Fisheries, marine biology and research, and sustainability of coastal regions are other areas where the two can collaborate.
Third, as digitalisation and industry 4.0 technologies emerge as key components of global information, partnerships between Indian and Mediterranean countries can be envisaged.
India and the Mediterranean could jointly cooperate on introducing and developing a payment interface like UPI, leveraging the strength of the India stack for sectors such as e-commerce and fintech.
Similarly, India and the Mediterranean could collaborate on an integrated digital corridor and increase undersea telecommunications connectivity.
Fourth, India and the Mediterranean nations must converge collaborations on energy security and sustainable energy. Under the National Green Hydrogen Mission and Production Linked Incentive Scheme on High Efficiency Solar PV Modules, India and the Mediterranean can work together on manufacturing and introducing clean energy into their energy mixes.
Fifth, with geopolitical instability as a global challenge to commerce, multilateral industrial defence partnerships could be catalysed. India and the Mediterranean should pursue joint manufacturing and tech transfer agreements under the Make in India initiative to diversify industrial defence supply chains and improve security.
Sixth, Mediterranean companies have significant opportunities to invest in India and use it as a manufacturing hub for not only the Indian market but also markets in the Indo-Pacific region, and, potentially, the world.
Similarly, Indian companies can form joint ventures with Mediterranean businesses to integrate themselves into supply chains and access their markets.
Seventh, both regions enjoy immense potential for tourism linkages. Their historical connection can attract tourists in both directions. Along with this, tourist infrastructure, skill development, and cruise tourism can be areas of engagement.
Eighth, with India and the Mediterranean having significant urban populations, urban infrastructure and circular economy practices emerge as a mutual need to meet sustainability goals and combat climate change. Programmes such as India’s Smart Cities mission offer significant opportunities for Indian and Mediterranean businesses to invest and develop technologies to promote sustainable urban development.
India and the Mediterranean are two regions that historically exchanged technology, currency and culture and, within the recent geopolitical shifts, the revitalisation and renewal of this relationship can offer a significant platform for stability and greater prosperity of the world.
The post A new partnership with Middle Earth appeared first on India Seatrade News.