New Silk Road

New Silk Road

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  • Global leaders, on the sidelines of the G20 summit in New Delhi, have announced a multinational rail and ports agreement connecting the Middle East and South Asia. This development aligns with U.S. President Joe Biden's efforts  position the United States as an alternative partner for developing countries within the G20 framework. The pact aims to create connectivity between two continents through ports and railways, fostering stability,  and integration in the Middle East.
  • U.S. President Biden emphasized the importance of this agreement, describing it as a substantial step toward bridging ports across regions and promoting clean energy, electricity, and community connectivity. India's Prime Minister Narendra Modi underscored the significance of this connectivity initiative for future generations. The deal is expected to benefit low and middle-income countries in the region, enhancing the Middle East's role in global commerce by facilitating the efficient flow of energy and trade between the Gulf and Europe, ultimately reducing shipping times, costs, and fuel consumption.

Why it matters

A memorandum of understanding (MOU) involving the European Union, India, Saudi Arabia, the United Arab Emirates, the U.S., and other G20 partners is set to be signed to advance this initiative. During the G20 meeting, both Joe Biden and Narendra Modi proposed strengthening defense and technology cooperation; the United States is actively seeking to redirect attention to the region as a means of reassuring its allies and maintaining its influence. 


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