India–Middle East–Europe Economic Corridor (IMEC) and Gaza War

Date: 11 August 2025 | Syllabus: International Relations | Source: Indian Express

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Origin and Objectives of IMEC

• Launch: G20 Summit, New Delhi (September 2023)
• Partners: India, Saudi Arabia, United Arab Emirates (UAE), European Union (EU), France, Italy, Germany, USA, Israel, Jordan
• Structure:
  • Eastern Corridor: India’s western ports → UAE (maritime route) → Saudi Arabia, Jordan (rail route) → Haifa, Israel (port)
  • Western Corridor: Haifa → Greece/Italy (maritime route) → Europe via existing rail network
• Main Components:
  • High-speed freight rail across the Arabian Peninsula
  • Energy pipeline for clean hydrogen
  • Digital infrastructure (submarine cables, e.g., Blue Raman Project: Mumbai–Genoa)
  • Trade facilitation measures to improve efficiency and reduce costs

Strategic Importance for India

1. Trade and Economic Integration
   • The EU is India’s largest trading partner — $137.41 billion trade in 2023–24.
   • Increased connectivity could diversify trade routes away from chokepoints like the Suez Canal and Red Sea.
2. Energy Security
   • Opportunity to participate in the green hydrogen supply chain.
   • Integration with Gulf energy infrastructure to aid India’s clean energy transition.
3. Digital and Data Connectivity
   • Strengthens India’s role as a technology hub through submarine cable projects.
   • Digital corridors can boost AI and fintech growth.
4. Strategic Advantage
   • Positions India at the centre of linking Asia, the Middle East, and Europe.
   • Provides a strategic alternative to China’s Belt and Road Initiative (BRI).

Opportunities for India

• Expanded Market Access: Faster and cheaper connectivity to the EU, reduced dependence on the Suez Canal, increased export competitiveness.
• Energy Transition Leadership: Green hydrogen pipeline could make India a clean energy supplier to Europe and Gulf nations.
• Digital Hub: Blue Raman submarine cable could make India the central node for Asia–Europe data connectivity.
• Supply Chain Diversification: Alternative routes to mitigate risks from Red Sea or Hormuz crises, attracting global investment.
• Geopolitical Influence: As the eastern end of IMEC, India can shape trade standards and offer an alternative to BRI.

Challenges

1. Geopolitical Instability
   • The Israel–Gaza war has disrupted regional normalisation (e.g., Saudi–Israel agreement).
   • Jordan–Israel relations at a low point; Gulf nations cautious about engagement with Israel.
2. Economic Rivalry in the Gulf
   • Competition between Saudi Arabia and UAE to become logistics hubs may delay operational design.
3. Infrastructure Gaps
   • High-speed freight rail incomplete in Saudi Arabia/UAE.
   • Disparities in tariff standardisation, insurance arrangements, and port capacity across the corridor.
4. Security Risks
   • Spillover of conflicts in Yemen, Lebanon, Syria could increase insurance costs and deter private investment.

Current Status

• Eastern Corridor: Strong prospects due to India–Gulf partnership; UPI adoption in UAE and Saudi Arabia has boosted digital trade readiness.
• Western Corridor: Uncertain until Middle East conflicts ease; execution depends on resolving the Palestinian issue.
• August 2025 Delhi Meeting: Partner diplomats discussed operations and trade facilitation, but no full-scale implementation yet.

The Way Forward for India

• Prioritise Eastern Corridor: Strengthen maritime and rail connectivity with Gulf nations, independent of the Israel section.
• Boost Energy Diplomacy: Accelerate green hydrogen cooperation for exports to Europe.
• Invest in Digital Infrastructure: Lead in submarine cable networks and digital corridors.
• Diversify Port Connectivity: Multiple terminal options in India and Europe to avoid bottlenecks.
• Maintain Diplomatic Balance: Engage all parties while staying neutral in regional conflicts to keep the corridor secure.

Conclusion:
IMEC has the potential to transform trade, energy, and digital connectivity between Asia, the Middle East, and Europe. Its success will depend on regional stability and diplomatic consensus among all stakeholders. For India, strategic patience and focused development of the Eastern Corridor can secure long-term gains despite current challenges.

Defence Production in India (FY 2024–25)

Context:
In FY 2024–25, India’s annual defence production reached a record ₹1.51 lakh crore, marking an 18% increase compared to the previous year and a 90% surge since 2019–20. This achievement highlights the strengthening of the country’s domestic defence industrial base.

About Defence Production in India (FY 2024–25)

What is it?

• The process of manufacturing weapons, military systems, and defence equipment for the Indian Armed Forces and export markets.
• Includes production by Defence Public Sector Undertakings (DPSUs), ordnance factories, other public sector undertakings, and private sector companies.

Trends:

• Record Production: ₹1,50,590 crore (FY 2024–25).
• Growth Pattern: 18% increase from 2023–24; 90% increase since 2019–20.
• Sectoral Share: DPSUs/PSUs: 77%; Private sector: 23% (up from 21% last year).
• Policy Drivers: Push for indigenisation under Aatmanirbhar Bharat, ease of doing business reforms, and greater private participation.
• Export Growth: Defence exports worth ₹23,622 crore (FY 2024–25), up 12% from the previous year.

Relevance in the UPSC Exam Syllabus

GS Paper II: Government policies, industrial development, and the role of public–private partnerships in strategic sectors.

GS Paper III:

• Indian Economy: Indigenisation of technology, Make in India, and self-reliance.
• Security: Defence modernisation and strategic manufacturing capabilities.
• Industry: Role of the manufacturing sector in economic growth.

India’s First State-of-the-Art Animal Stem Cell Biobank and Laboratory

Source: PIB

Context:
The Union Minister inaugurated India’s first state-of-the-art Animal Stem Cell Biobank and Laboratory at the National Institute of Animal Biotechnology (NIAB) in Hyderabad.

About India’s First State-of-the-Art Animal Stem Cell Biobank and Laboratory

What is it?

• An advanced facility aimed at preserving, researching, and utilising animal stem cells for regenerative medicine, disease modelling, and reproductive biotechnology in livestock.

Location:

• Hyderabad, Telangana
• Located at the National Institute of Animal Biotechnology (NIAB)

Institutions Involved:

• National Institute of Animal Biotechnology (NIAB) – under the Department of Biotechnology (DBT)
• Supported by the National Biopharma Mission (NBM) – DBT–BIRAC

Objectives:

• Promote veterinary innovation through regenerative medicine and cell-based therapies.
• Support the One Health approach – linking human, animal, and environmental health.
• Strengthen India’s capacity in biotechnology-driven agricultural productivity.

Key Features:

• Advanced Infrastructure: Stem cell culture unit, 3D bioprinter, bacterial culture lab, cryostorage, autoclave rooms.
• Support Systems: Modern air handling units and uninterrupted power backup.
• Research Areas:
  • Regenerative medicine for livestock
  • Disease modelling for brucellosis, mastitis, and other diseases
  • Tissue engineering and reproductive biotechnology
• Expansion Plans: To store and manage stem cells and their derivatives for long-term research and clinical applications.

Significance:

• Enhances livestock productivity and farmers’ incomes.
• Supports the Evergreen Revolution in animal husbandry.
• Strengthens India’s position as a front-runner in biotechnology-based agriculture.