In order to facilitate the functioning of the India-Middle East Europe Economic Corridor (IMEC), the Indian Cabinet has retroactively approved an Inter-Governmental Framework Agreement (IGFA) with the UAE.
The aforementioned accord, ratified on February 13th, coincided with the visit of Indian Prime Minister Narendra Modi to Abu Dhabi. Its primary objective is to enhance bilateral relations and foster greater collaboration between the two countries in the domains of logistics, maritime affairs, and ports.
The objective of the IGFA is to explore avenues for joint investment and collaboration in developing the IMEC, thereby enhancing economic ties between India and the UAE. It delineates specific areas of cooperation and provides a comprehensive framework for future collaboration, grounded in mutually agreed principles, guidelines, and agreements adhering to the respective laws and regulations of both countries.
The establishment of the IMEC was initially proposed during the 18th Summit of the Heads of State and Government of the Group of Twenty (G20), held in New Delhi in September. The IMEC is envisioned as a vital economic corridor linking India with the Middle East and Europe, facilitating trade, investment, and connectivity across the regions involved.
This agreement underscores the commitment of both the UAE and India to deepen their economic engagement and foster closer ties in key strategic sectors. By leveraging each other's strengths and resources, the two countries seek to unlock the immense potential for collaboration and mutual benefit offered by the IMEC initiative.
Furthermore, the approval of the IGFA by the Indian Cabinet signifies a significant milestone in the bilateral relationship between the UAE and India. It reflects the shared vision of the leadership of both nations to harness the opportunities presented by regional economic integration and infrastructure development, paving the way for greater prosperity and growth in the years ahead.
