IMEC to ease Israel's economic isolation, says minister Barkat

Tel Aviv: Conceived in New Delhi at the G20 Summit two years ago, the India-Middle East-Europe Economic Corridor (IMEC) is expected to deliver significant trade gains for Israel - most notably by easing its long-standing economic isolation - Israel's economy and industry minister Nir Barkat said on Thursday.

Speaking to dozens of CEOs from India and Israel gathered in Tel Aviv, Barkat noted that the proposed corridor - linking India to Europe through the UAE, Saudi Arabia, Jordan and Israel - is set to operationalise and reshape regional commerce with the expansion of Abraham Accords.

"IMEC is a major opportunity for Israel. It's an amazing idea - starting in India and stretching all the way to Europe, passing through several countries including Israel. Within this corridor, Haifa port will emerge as the gateway to the West," he said. The Port of Haifa, Israel's largest port, is operated by a consortium comprising Adani Ports and Special Economic Zone (APSEZ) and Israel's Gadot Group.


The Abraham Accords, signed in 2020 by Israel, Bahrain, the UAE, Morocco and Sudan to deepen economic, security and diplomatic cooperation, are expected to expand to include additional Gulf nations - a development seen as critical to IMEC's long-term viability.

IMEC was conceived as a strategic counterweight to China's Belt and Road Initiative (BRI), but its momentum was largely stalled by the Israel-Gaza conflict.

Minister Barkat said India represents Israel's most promising bet, given India's rapid economic growth in contrast to Europe's near-stagnation.

"India is a great bet for us. We want to be India's best partner," he said.

He added that Europe is grappling with "zero growth," prompting many Jews to relocate to Israel. "Nearly 59% of global growth is now coming from Asia - and India accounts for a major share of it," he said, adding that India is currently the fifth-largest economy and is on track to become the third largest.

"India is a giant waking up. It has a huge size and fast growth," he said.

(The reporter is in Tel Aviv at the invitation of Ficci)