At the G20 summit in Tokyo on June 28th, 2021, President Joe Biden announced the launch of an ambitious new project to create a transportation corridor connecting India and Europe. The move is seen as part of the US’ strategy to increasing its economic and strategic presence in the region, as well as to boosting the effectiveness of the region’s supply chains.
The US is partnering with the International Road Transport Union and other organizations to develop this corridor. This project would enable India and Europe to rapidly move goods along the corridor, benefiting both countries economically. According to estimates, the measure could boost India’s trade to Europe by up to 50 percent.
A successful corridor between India and Europe could benefit countries in the region in a number of ways—including increased digital connectivity, improved infrastructure, and the potential for job creation in the transport sector.
The move is also seen as part of the US’ efforts to curb China’s growing influence in the region. The US hopes that this initiative will hedge against Chinese encroachment by creating an alternate transportation route that bypasses the country.
All in all, the announcement of the India-Europe transport corridor is viewed as a win-win for both countries. It is expected to reduce the cost of trade dramatically, increasing the supply of goods, and help to create thousands of jobs in the process.