Inter-Governmental Framework Agreement

Context

The Union Cabinet has recently approved its Ex-post facto to the Inter-Governmental Framework Agreement (IGFA).

About

• It was signed in February, 2024 during the High Level visit between India and the United Arab Emirates on Cooperation for the empowerment and operation of the India-Middle East Europe Economic Corridor (IMEC). 
• Aim: To decorate the bilateral relation and to further strengthen the relations between the two countries in the Ports, Maritime and Logistics sectors.
• The cooperation can be based totally on a fixed or togetherly agreed upon ideas, recommendations and agreements consistent with the relevant guidelines and guidelines of the countries’ jurisdiction.

What is IMEC?

• Members: On the sidelines of the G20 Leaders’ Summit, Leaders of India, European Union, France, Germany, Italy, Saudi Arabia, UAE and US announced the India-Middle East-Europe Economic Corridor (IMEC). 
• Aim: Integration of Asia, Europe and the Middle East.
  • The IMEC will include of two separate corridors:
  • The east corridor connecting India to the West Asia/Middle East and 
  • The northern corridor connecting West Asia/Middle East to Europe.
• Connectivity: The corridor will provide reliable and cost-effective cross-border ship to rail transit networks to supplement current maritime routes. 

Significance 

• Economic Development: By linking Asia, West Asia, the Middle East and Europe by more suitable connectivity and monetary integration, the corridor aims to give a boost to economic development in the areas.
• Connectivity: The corridor will consist of a rail line, which, upon completion, will provide a reliable and cost-effective cross-border ship-to-rail transit community.
• The rail line will supplement the existing multi-modal delivery routes enhancing trans-cargo of products and offerings from South East Asia through India to West Asia/Middle East and Europe.
• Eco-friendly Infrastructure: It places emphasis on developing environmentally friendly infrastructure. 
• Transformative Integration: It intends to increase performance, reduce costs, secure local supply chains, increase exchange accessibility, decorate financial cooperation, generate jobs and decrease greenhouse gas emission, resulting in a transformative integration of Asia, Europe and the Middle East (West Asia).

Source: The PIB

UPSC Mains Practice Question

Q.The question of India’s Energy Security constitutes the most important part of India’s economic progress. Analyse India’s energy policy cooperation with West Asian countries. (2017)

Download as PDF