No India-Middle East trade corridor without Turkey: Erdogan on new transport link
Turkey’s President Recep Tayyip Erdogan on Monday said there could be no proposed India-Middle East trade corridor without Turkey.
“We say that there is no corridor without Turkey. Turkey is an important production and trade base. The most convenient line for traffic from the east to west has to pass through Turkey,” Erdogan told a press team that accompanied him for the G20 summit in India. Turkey is already backing another proposed corridor through Middle East. This will connect the Gulf to Turkey and Europe through a rail line and highway via ports in the UAE, Qatar and Iraq. It envisages a 1,200-km dual-track with trains running at 300 kmph and a modern highway from al-Faw, an Iraqi port. India, Saudi Arabia and EU have announced a trade corridor linking South Asia to Europe through rail lines and shipping channels via UAE, Saudi Arabia, Jordan and Israel.
The summit serves as a powerful testament to India’s growing prominence on the global stage, with some experts suggesting that only India could have achieved such a comprehensive consensus.
One of the noteworthy outcomes of the G20 summit was the formal admission of the African Union (AU) into the group, elevating it to the status of a permanent member alongside the European Union.
India pulled off the G20 Summit 2023 with perfection and garnered much praise from diplomats worldwide, who complimented Prime Minister Modi for the country’s impactful presidency. Not only did India facilitate a consensus among the divided bloc, but it also laid the groundwork for deeper future collaboration. The summit serves as a powerful testament to India’s growing prominence on the global stage, with some experts suggesting that only India could have achieved such a comprehensive consensus.
India, known for its positive relations with both Western nations and Russia, judiciously leveraged its unique position for the greater global good. The summit produced a consensus document and addressed various critical issues, including the overhaul of institutions like the World Bank. Here are five key takeaways from the G20 Summit in New Delhi that showcased India’s commending leadership:
Passing the buck! African Union’s formal admission
One of the noteworthy outcomes of the G20 summit was the formal admission of the African Union (AU) into the group, elevating it to the status of a permanent member alongside the European Union. Previously, only South Africa was a member of the G20. This move aimed to enhance the representation of the Global South within the G20, reducing the dominance of G7 countries.
The Global Biofuel Alliance
Prime Minister Narendra Modi officially inaugurated the Global Biofuels Alliance during the G20 Summit in New Delhi. The formation of the GBA has been in progress for a considerable period and holds a central role in India’s G20 presidency agenda. This alliance is designed to promote international collaboration, advance the adoption of sustainable biofuels, foster global biofuels trade, and provide technical support for national biofuel initiatives.
India, the United States, and Brazil took the lead in championing the Global Biofuel Alliance, and it launches with nine founding members, namely, India, the US, Brazil, Argentina, Bangladesh, Italy, Mauritius, South Africa, and the United Arab Emirates. Additionally, Canada and Singapore are participating as observer countries. To date, 19 countries and 12 international organizations have expressed their commitment to join the GBA.
Softer Stance on Ukraine Conflict
The G20 nations reached an agreement emphasizing that states should not acquire territory through the use of force. While the suffering of the people of Ukraine was acknowledged, the declaration notably avoided direct criticism of Russia for its role in the conflict. This marked a shift from the G20’s stance in the previous year when it condemned Russia for the war and called for its withdrawal from Ukraine. Diplomats reasoned that an outright condemnation by Russia was unlikely, but the agreement signaled a commitment from all member states to refrain from territorial aggression.
India-Middle East-Europe Corridor
Leaders from the United States, India, and Saudi Arabia announced plans to establish rail and port connections between the Middle East, South Asia, and eventually Europe. This initiative, which also gathered praise from US President Joe Biden, aims to provide an alternative to China’s Belt and Road infrastructure projects and strengthen ties between these regions. However, details about financing and timelines for the project remain undisclosed.
Russian President Vladimir Putin with Prime Minister Narendra Modi File
President Vladimir Putin has praised Prime Minister Narendra Modi’s ‘Make in India’ initiative and said Russia can emulate the success stories of its partners like India in promoting the growth of its domestic industries.
Putin made these remarks on Tuesday while speaking at the Plenary session of the 8th Eastern Economic Forum in Vladivostok, a major port city in sanctions-hit Russia’s Far East region.
While responding to a question on Russian-made cars, Putin said, “You know, we did not have domestically made cars then, but we do now. It is true that they look more modest than Mercedes or Audi cars, which we bought in vast amounts in the 1990s, but this is not an issue. I think that we should emulate many of our partners, for example, India.”
Prime Minister Modi launched the ‘Make in India’ campaign in 2014 to facilitate investment, foster innovation, enhance skill development, protect intellectual property & build best-in-class manufacturing infrastructure.
The “Make in India” initiative is based on four pillars, which have been identified to give a boost to entrepreneurship in India, not only in manufacturing but also in other sectors.
“They are focused on the manufacture and use of Indian-made vehicles. I think that Prime Minister Modi is doing the right thing in promoting the Make in India programme. He is right,” the Russian leader said.
He further added that it is absolutely fine to use Russian-made automobiles.
“We have (Russian-made) automobiles, and we must use them; this is absolutely fine. This will not lead to any infringements of our WTO obligations, absolutely not. It will concern state purchases. We must create a certain chain regarding what cars different classes of officials can drive so that they will use domestically-made cars.” Putin also said that the ‘India-Middle East-Europe Economic Corridor’ (IMEC) will in no way affect Russia in fact it will benefit the country.
The IMEC was launched during the G20 Summit in New Delhi. On Saturday, the ambitious India-Middle East-Europe Economic Corridor (IMEC) was jointly announced by the leaders of the US, India, Saudi Arabia, the United Arab Emirates, France, Germany, Italy and the European Union on the sidelines of the summit in New Delhi.
Putin did not personally attend the G20 summit because of his “busy schedule”.
“I think it is for our good; it will help us develop logistics,” Putin said while responding to a question about if the IMEC initiative will affect the implementation of Russia’s and Chinese projects and what it means for Russia in general.
Russia’s Foreign Minister Lavrov says India will propose options for investing the billions of rupees it has accumulated for exports. Lavrov also stated that Russian arms contracts with India remain in force.
Russian Foreign Minister Sergei Lavrov speaks at a press conference, during the G20 summit, in New Delhi, India (REUTERS)
Russia’s Foreign minister Sergei Lavrov on Sunday informed that India will offer Moscow options to invest the billions in rupees it has accumulated for exports. Lavrov who addressed a press conference in New Delhi after the 18th G20 Summit meet on Sunday.
“Our Indian friends said they would propose promising areas they can be invested in,” Lavrov told reporters, citing talks with Indian counterpart Subrahmanyam Jaishankar in Jakarta, Indonesia, on the side lines of the East Asia summit prior to his arrival to India. “Right now our governments are talking how to use and invest them to mutual benefit.”, Bloomberg quoted Russia’s Foreign Minister.
With imports from India stagnating, Russia is ending up with an excess of rupees, which its companies have trouble repatriating because of local currency restrictions.
Notably, Sergei Lavrov attended the 18th G20 Summit in place of Russia’s President Vladimir Putin.
On Arms Contract with India
Lavrov also said Russian arms contracts with India remain in force, despite difficulties with payments caused by sanctions imposed by the US and its allies over Russia’s invasion of Ukraine.
Notably, Russia has emerged as the top supplier of oil to India over the past year, thereby settling a greater share of trade in national currencies and redirecting shipments east as traditional customers in Europe shunned purchases after President Vladimir Putin invaded Ukraine.
On Russia-Ukraine Conflict
Russian Foreign Minister Sergei Lavrov claimed diplomatic victory on Sunday, declaring a G20 summit in India a “success” after the bloc shied away from direct criticism of Moscow’s invasion of Ukraine.
“We were able to prevent the West’s attempts to ‘Ukrainize’ the summit agenda,” Lavrov said as the two-day meeting of leaders closed.
“The text doesn’t mention Russia at all” Russia’s veteran diplomat said.
“The Kyiv regime destroyed the territorial integrity of its country with its own hand…I believe that some of our Western colleagues understand it too but you know very well that they are placing their bets on Russia’s strategic defeat…” Lavrov said at the press conference.
The India-Middle East-Europe Economic Corridor is expected to attract additional Asian countries, boosting manufacturing, food security, and supply chains within its sphere of influence.
At the G20 Summit, PM Modi and other world leaders launched the India-Middle East-Europe Connectivity Corridor. (Source: X/@PMOIndia)
Prime Minister Narendra Modi hailed it as “a testament to human endeavor and unity across continents,” while US President Joe Biden deemed it “a real big deal.” Leaders from India, the United States, Saudi Arabia, the United Arab Emirates, France, Germany, Italy, and the European Union have jointly unveiled a Memorandum of Understanding (MoU) that directly challenges China’s expansive Belt and Road Initiative (BRI), which seeks to establish trade and infrastructure networks connecting Asia, Europe, and Africa.
As the BRI marks its 10th anniversary, many view it as a tool for China to exert influence over developing nations, often resulting in debt traps. For Chinese President Xi Jinping, the announcement of the new India-Middle East-Europe Economic Corridor, which also involves Israel and Jordan, comes at an inopportune moment. Data reveals that the value of new foreign contracted projects under the BRI has stagnated since its peak in 2019, coinciding with China’s domestic real estate debt crisis.
A noteworthy shift in the global order was evident at the G20, with Italian Premier Giorgia Meloni’s participation, signaling Italy’s inclination to abandon the BRI. Italy had been the first G7 country to join Xi Jinping’s ambitious project in 2019.
Following the announcement, President Biden remarked, “The world stands at an inflection point in history. A point where decisions we make today are going to affect the course of our future—all of our futures for decades to come. A point where our investments are more critical than ever.”
Indian officials said the announcement would help ‘leave a lasting imprint’ of the work the Indian Presidency has done in bringing in the Global South’s ambitions to the economic grouping
An installation at the Delhi Gate in New Delhi on September 7, 2023 ahead of the G-20 Summit to be held from September 9-10. | Photo Credit: PTI
The African Union (AU) is set to join the G-20 as negotiators agreed on clearing its membership, according to sources privy to the discussions at the Sherpa meeting at a resort on the outskirts of Delhi.
This will mean the 55-member AU will join the European Union as the only two regional bodies in the G-20. While it still unclear whether the G-20 will be renamed as the “G-21” after the induction of the AU, Indian officials said the announcement would help “leave a lasting imprint” of the work the Indian Presidency has done in bringing in the Global South’s ambitions to the economic grouping.
India said it has decided to allow export of rice to Singapore in view of the special relationship between the two countries. EAM spokesperson Arindam Bagchi said formal orders allowing export of rice to Singapore will be issued shortly.
Credit: PTI Photo
The government has decided to allow Singapore to import rice from India, relaxing the ban it had imposed on the export of the grain in July.
India has decided to allow the export of rice to meet the food security requirements of Singapore, Arindam Bagchi, the spokesperson of the Ministry of External Affairs (MEA), said in New Delhi on Tuesday. He said that the formal orders allowing the export of rice from India to Singapore would be issued shortly.
Singapore had requested New Delhi to allow it to import at least 110,000 tonnes of rice from India, relaxing the ban on the export of the grain.
Prime Minister Narendra Modi’s government on July 20 imposed a ban on the export of non-basmati white rice from the country after a late but heavy monsoon resulted in significant damage to crops and the price of the grain in the domestic market shot up by about 3 per cent.
India, the largest rice exporter in the world, accounts for more than 40 per cent of global shipments of grain. The non-basmati white rice accounts for nearly 25 per cent of the exports of grains from India.
Singapore, the Philippines and Indonesia are among the nations that so far requested India to grant exemptions from the ban and allow the export of rice. The United Nations World Food Programme also requested New Delhi to relax the ban so that it could procure at least 200,000 tonnes of rice to help meet the requirements of its humanitarian operations around the world.
‘The US should also have a stronger strategic relationship with India, including even a military relationship in the Andaman Sea’
Vivek Ramaswamy File image
A stronger relationship with India would help the US declare its “independence” from China, Indian-American Republican presidential candidate Vivek Ramaswamy believes and has called for stronger strategic ties with New Delhi, including a military relationship in the Andaman Sea.
At 38, Ramaswamy is the youngest Republican presidential candidate ever. He is currently on a two-day swing to the crucial State of Iowa. On January 15, Iowa would kick off the 2024 Republican presidential primary season.
“A stronger US-India relationship could help the US declare independence from China. The US is economically dependent on China today, but with a stronger relationship with India, it becomes easier to declare independence from that Chinese relationship,” Ramaswamy told PTI in an interview.
A second-generation Indian-American, Ramaswamy founded Roivant Sciences in 2014 and led the largest biotech IPOs of 2015 and 2016, eventually culminating in successful clinical trials in multiple disease areas that led to FDA-approved products, according to his bio.
“The US should also have a stronger strategic relationship with India, including even a military relationship in the Andaman Sea. Knowing that India, if necessary, could block the Malacca Strait where actually China gets most of its Middle Eastern oil supplies. So, these are areas for real improvement in the US-India relationship.
“I think that would be good for the US and that’s exactly why I would lead accordingly,” Ramaswamy, a multimillionaire biotech entrepreneur-turned-politician, said in response to a question.
His polling numbers have gone up after the maiden presidential debate in Milwaukee, Wisconsin on August 23.
On the firing line of most of the Republican presidential nominees, in particular former New Jersey Governor Chris Christie, former vice president Mike Pence and former South Carolina Governor Nikki Haley; Ramaswamy has suddenly gone up the ladder in polling numbers and in many polls, he is placed second after former president Donald Trump.
In his first interaction with the Indian media, Ramaswamy appeared to be a strong supporter of the growing India-US relationship, which has been a hallmark of multiple presidential administrations across the political aisle since the start of the Bill Clinton Administration.
“I think he (Prime Minister Narendra Modi) has been a good leader for India, and I look forward to working with him on building the US-India relationship further,” Ramaswamy said in response to a question.
During the first Republican presidential debate, his fellow Indian-American challenger Haley told him that he had no foreign policy experience. But Ramaswamy has developed his own vision of America’s foreign policy.
“The major challenge of US foreign policy is that we’re not protecting the homeland. We’re fighting wars that don’t advance American interests while leaving the homeland actually vulnerable. So I think it’s a mistake for the US to continue engagement in Ukraine. That doesn’t advance US national interest,” he said.
“To the contrary, I think it actually is going to impede US credibility on the global stage. The US needs to focus on Communist China. That’s the top threat abroad. And protecting the homeland has to be the top priority at home with actual defence capabilities of the border,” he argued.
Lord Jim O’Neill, the British economist credited with coining the acronym BRIC, calls the creation of a common BRICS currency “ridiculous,” emphasizing that the BRICS nations have “never achieved anything since they first started meeting.” He added: “It’s a good job for the West that China and India never agree on anything, because if they did the dominance of the dollar would be a lot more vulnerable.”
Lord Jim O’Neill Slams Common BRICS Currency Idea
British economist Lord Jim O’Neill shared his view on the proposed single BRICS currency in an interview with the Financial Times this week. The BRICS leaders are set to meet at the economic bloc’s 15th summit on Aug. 22-24 in Johannesburg. South Africa is the host of the BRICS summit this year. However, there are mixed reports on whether the creation of a common BRICS currency will be discussed at the summit.
O’Neill, a former Goldman Sachs economist, coined the acronym BRIC over 20 years ago to describe the economic potential of Brazil, Russia, India, and China. South Africa joined the group a few years later, and the acronym was changed to BRICS. O’Neill is now a senior adviser at U.K. think tank Chatham House.
The economist asserted that the BRICS nations had “never achieved anything since they first started meeting” eight years after he created the phrase in a 2001 research note. He believes that a common currency for the BRICS economic bloc would be unfeasible, stating:
It’s just ridiculous … They’re going to create a BRICS central bank? How would you do that? It’s embarrassing, almost.
“Quite what they attempt to achieve beyond powerful symbolism, I don’t know,” he opined.
In June, Lord O’Neill similarly described the idea of a single currency for the BRICS nations as “ridiculous” and “amusing.” He stressed that “China and India never agree on anything,” pointing out that the two countries “can’t even really agree on basic things like a peaceful border.”
U.S. Dollar Could Lose Its Dominance, Lord O’Neill Warns
The British economist also commented on the dominance of the U.S. dollar, emphasizing that the USD’s dominant position in the global financial system is not beneficial for emerging countries. He described:
The dollar’s role is not ideal for the way the world has evolved. You’ve got all these economies who live on this cyclical never-ending twist of whatever the [U.S. Federal Reserve] decides to do in the interests of the U.S.
Some economists have predicted that other currencies, such as the Chinese yuan, the Japanese yen, or the euro, would eventually overtake the U.S. dollar. However, O’Neill cautioned: “None of these things will ever happen until those countries want to have their currencies used by people in other parts of the world.”
