Mediterranean Outreach: By Forging Ties And Investing In Trade, India Adopts A Steady Approach

Just before this, Cyprus's Foreign Minister Constantinos Kombos was in India to discuss matters of territorial sovereignty. 

What is noteworthy is India’s slow, steady, and yet increasing presence in the Mediterranean, particularly in forging partnerships with Israel, Cyprus, Greece, and Egypt. It is still the initial days, and the West Asian crisis is yet to be resolved. But India is quietly building its profile in a region that connects Asia with Europe via landmass and sea routes, presenting huge opportunities. 

The India Middle East Europe Economic Corridor

The bridge connecting this is the India Middle East Europe Economic Corridor (IMEC), which was launched under India’s G20 Presidency.

The IMEC was slow in taking off, and it probably will not hit the ground soon. The original plan was to connect India with the Mediterranean region through Israel, but now, given the protracted crisis in Gaza, this may take time. Besides, a sizeable fund is required to build the entire railroad network through Saudi Arabia.

While the corridor is yet to take shape in the physical sense, the IMEC continues to thrive in spirit and notion.

A new course for IMEC can be carved through the UAE-Oman-Saudi Arabia-Egypt route onwards to Southern Europe, bypassing the crisis zone in Israel for the time being. 

Though Oman often does not grab headlines in India, the Gulf state is India’s oldest strategic and defence partner in the region. 

Trade Pact With Oman

India’s free trade agreement (FTA) with Oman is in the offing and is expected to be announced in the near future. Another lesser-known fact is India’s presence in Oman’s Duqm Port, which has given New Delhi a stronger foothold in the Western Indian Ocean region. 

It is important to note that Indians enjoy goodwill in Oman, the country that has stood by New Delhi on matters of territorial sovereignty and terrorism. India is also set to be a significant partner in giving shape to Oman Vision 2040, which envisages transforming the Gulf country into a knowledge-based, tech-driven society. Economic diversification is also a key pillar of this vision. 

The often understated Oman has been a bridge-builder in the Gulf region, acting as a crucial link between Iran and the US. 

Egypt, bordering the Mediterranean on one side and the Red Sea on the other, is India’s partner in waiting as ties have been rejuvenated under Egyptian President Abdel Fattah el-Sisi. The significance of Egypt has increased manifold with the crises in Gaza and Sudan, and following the tensions between Ethiopia and Eritrea. 

Prudence would demand that India should make Egypt its anchor in the Red Sea and Northeastern Africa and the Eastern Mediterranean region. The country has substantial opportunities for New Delhi, and is offering Indian investors and traders key business opportunities and access to various markets. 

Trade And Investment

India’s trade and investment partnerships across the Mediterranean region are gaining salience. Egypt is positioning itself as India’s gateway to the African and Southern European markets, besides those of the wider Arab world. Indian investments in Egypt are on the rise.

Similarly, Morocco, too, with a growing economy, has positioned itself as India’s gateway to Western Africa and Europe.

While Cyprus often gets buried under eye-grabbing headlines, the country, along with Greece, Israel and, India, forms a “Quad” of sorts in the Eastern Mediterranean region. This is key as this region is sitting on huge gas deposits. 

Cyprus’s shipping sector is globally recognised, and it is now keen on collaborating with India. India’s defence partnership with Greece and direct air connectivity will place the bilateral ties in a new phase altogether.              

Italy And IMEC

Italy has been enthusiastic about the IMEC and its scale, and this can be gauged from the fact that several ministers of the Giorgia Meloni government and its advisers made a big pitch for IMEC and Rome’s growing ties with India. Italy, a G-7 member, is not only a powerhouse in Europe but also a key player in Southern Europe. Italy, in fact, has appointed a special envoy to coordinate efforts, highlighting a strong national commitment. 

France, on the other hand, wants to build on its strategic partnership with India and has positioned the Port of Marseilles as another entry point for the IMEC. France, also, has engaged a special envoy for the IMEC project. 

Along with this, the Port of Koper in Slovenia can also play its part in boosting the IMEC. Slovenia can easily serve as an entry point for Indian traders to Central Europe.  

India’s total trade with the IMEC countries increased by 40 per cent between 2018 and 2022. New Delhi’s export to the IMEC nations increased by around 50 per cent, and India’s import from the same rose by around 27 per cent during the same time. Improvements in logistics efficiency — estimated at 14–15 per cent — are expected to contribute positively to the GDP growth and overall trade competitiveness. 

The IMEC taps into a multi-billion-person market across India, Europe, and West Asia, driving industrial cooperation and consumer demand. For India, Europe's integrated market entry via Greece or Italy would mean full access to the EU region — removing tariff risks and facilitating investment. The IMEC, in fact, can emerge as a key enabler of FTA with the EU.

(The writer is a commentator on geo-politics and geo-economics. Views are personal.)