Instructions: For each of the following questions, read the Assertion (A) and the Reason (R) carefully. Choose the correct option from the following:
Assertion (A): IMEC is expected to reduce logistics costs by up to 30% and transportation time by 40%.
Reason (R): IMEC integrates digital infrastructure, clean energy pipelines, and rail-road connectivity to optimize trade routes.
Show answer & explanation
Correct answer: A
Explanation
Correct Answer
Both A and R are true, and R is the correct explanation of A.
Explanation
Assertion (A) is completely true. The India-Middle East-Europe Economic Corridor (IMEC) is a highly ambitious connectivity project. According to various official estimates and studies, once this corridor becomes fully operational, it will save up to 30% in freight logistics costs and bring a significant reduction of up to 40% in transportation time between India and Europe.
Reason (R) is also absolutely true and provides the correct explanation for the assertion. This massive reduction in cost and time is possible because IMEC is not just a simple sea route; it is a multi-modal integration network. To optimize trade routes, it integrates state-of-the-art railway lines, road connectivity, energy pipelines for electricity and clean hydrogen, and undersea digital infrastructure (digital cables) for rapid data communication. It is this modern technical and infrastructural coordination that makes trade exceptionally fast and economical.
Key Points
This project was announced in September 2023 during the G20 Summit held in New Delhi. It consists of two major parts - the Eastern Corridor (connecting India to the Arabian Gulf) and the Northern Corridor (connecting the Arabian Gulf to Europe). India, the United States, Saudi Arabia, the United Arab Emirates (UAE), the European Union, France, Germany, and Italy are the key partners in this agreement.
Additional Facts
This corridor will not only reduce trading distance and costs but will also promote eco-friendly (green) transportation through clean energy pipelines. It represents a historic step toward making the global supply chain more secure, transparent, and sustainable.
Important Questions and Answers
Question: By what percentage is the transport time between India and Europe expected to decrease due to the India-Middle East-Europe Economic Corridor (IMEC)?
Answer: It is expected to decrease by up to 40%.
Question: Which infrastructure is being included under IMEC for the transit of clean energy and electricity?
Answer: Clean energy pipelines and electricity cables.