The proposed India-Middle East-Europe corridor, which many see as a rival to China’s Belt and Road project, will be vastly different, Railway Minister Ashwini Vaishnao told NDTV today. He told NDTV in an exclusive interview that compared to the Chinese project that has trapped some host countries in a debt trap, the G20 project will bring in revenue and will be bankable.
“The Prime Minister’s vision of bringing everyone on board is an important part of this corridor… The Prime Minister’s vision for Sabka Saat Sabka Vikas is clearly ingrained in this from conception,” the minister said.
Since its announcement, the US-backed project, which many have dubbed the New Spice Route, has been seen as a counterweight to China’s ambitious Belt and Road Initiative that aims to virtually revive the ancient Silk Road.
But ten years later, European countries remain skeptical. Reports say that the only G7 country that has joined, Italy, is likely to withdraw. There is growing discontent about the debt trap facing host countries.
Mr. Vaishnaw said that the Belt and Road Initiative came with many conditions. He said that in the case of this project, which will be partly a shipping corridor and the rest a railway, each country can decide based on its needs.
The project will be so bankable that many multilateral institutions are willing to finance it. “The transfer will bring in so much revenue that it will be able to pay for itself without the host country falling into a debt trap,” he added.
The proposed G20 project, announced on the sidelines of the meeting, will connect railways, ports, electricity and data networks and hydrogen pipelines.
The project will connect rail and port facilities across the Middle East – including the UAE, Saudi Arabia, Jordan and Israel – bypassing the Suez Canal and potentially speeding up trade between India and Europe by up to 40 per cent.