The India–Middle East–Europe Economic Corridor (IMEC) is a regional connectivity initiative aiming to diversify supply chains and reduce freight time and costs by offering an alternative to routes such as the Red Sea. Despite the Middle East’s instability, India and Europe have shown commitment, focusing on collaboration in trade, logistics, green energy, digital infrastructure, and workforce mobility. Key stakeholders, including the EU, US, Gulf states, and several European countries, have varying priorities but share interests in secure supply-chain diversification, sustainability, and regional cooperation. IMEC is expected to align with broader development strategies and initiatives like the EU Global Gateway and India’s corridor and connectivity plans with the rest of the world.
India’s economic growth, increased investments from the UAE and Saudi Arabia, strong northern Italian industry, and its closer ties with Central Europe are likely to be key factors driving the realisation of IMEC. Italy is now outpacing France and Germany economically, and after leaving China’s Belt and Road Initiative, seems to have made IMEC central to its export ambitions, targeting €700 billion in annual exports.
Italy’s Role: Gateway and Innovation
Italy is poised to be the prime beneficiary of IMEC in Europe. Peppered with 110 ports, 62 commercial hubs, 20 primary commercial ports, and 16 Port System Authorities, Italy is aptly placed to leverage the longest coastline in the continental Mediterranean. Trieste is emerging as IMEC’s natural European terminal, a hub connecting the Mediterranean to Central and Eastern Europe, Balkans, and industrial heartlands, offering access to Southeast Mediterranean energy and emerging Eastern EU markets, notably Poland, by rail. Reinforcing support for IMEC through closer ties with India and Gulf states, evidenced by a recent €40 billion UAE investment, Italy is strategically leveraging its geography and partnerships to mark a significant turnaround since its post-2008 financial struggles.
Actively championing the Blue Raman cable, Italy is also positioning itself as a Mediterranean digital hub, with Trieste and Genoa vital for Europe–Asia data flows. The “Italia Digitale 2026” programme and Piano Nazionale di Ripresa e Resilienza (PNRR) or the National Recovery and Resilience Plan dedicate €6.7 billion to broadband and digital services, aiming for nationwide coverage, secure clouds, and digital wallet pilots, even in rural areas. By 2026, data-centre investments are projected to reach €30 billion, bolstered by incentives for sustainable designs and simplified permitting to attract foreign investors.
Energy linkages are another key feature of Italy’s strategy. The bidirectional ELMED or Electricity Mediterranean (Italy–Tunisia) submarine power cables and Trans Adriatic Links (Italy–Albania–UAE) facilitate renewable power transfer to Italy and the EU at large. Upgrades at the Port of Trieste are underway to support increased imports of green hydrogen, ammonia and LNG, in partnership with bilateral renewable energy projects under the Mattei Plan with the Gulf partners. Furthermore, Italy’s participation in high-voltage electric interconnection feasibility studies, linking the Arabian Peninsula to Europe via Jordan, Israel, Greece, and Italy, demonstrates its commitment to integrating these lines into the EU’s Ten-Year Development Plan and accessing Connecting Europe Facility grants while fitting directly into the IMEC concept.
The Italian Deputy Prime Minister and Foreign Minister, Antonio Tajani, championed Trieste and chaired a forum on “Developing an Indo-Mediterranean perspective through the IMEC Network” with representatives of government, business and other stakeholders from IMEC Countries during the March 17, 2026 summit. Previously, Deputy Minister Edoardo Rixi and MP Paolo Formentini championed Trieste as the corridor hub at the “IMEC: a Path for Peace and Stability in the Middle East” conference in Rome. The appointment of Ambassador Francesco Talò as Italy’s IMEC special envoy is a signal of high-level commitment and dedicated coordination. The India–Italy Joint Strategic Action Plan (JSAP) 2025–29 includes IMEC cooperation and a joint framework across trade, digital, energy, and infrastructure. These strategic moves underscore Italy’s dedication to operationalising IMEC, while strengthening its own position and shaping the broader Indo-Italian relationship.
Beyond IMEC: Prospects for India–Italy Cooperation
India–Italy bilateral trade has grown steadily post-COVID, surging from €10.49 billion in 2021 to €14.24 billion in 2024, and is projected to reach €20 billion by 2029. India has maintained a favourable trade balance with Italy. In FY 25, Indian exports of €7.1 billion were spread across 4100 commodities, dominated by engineering goods (~39%), electronics (~18.5%), and organic and inorganic chemicals (~6.6%). During the same time, the imports from Italy amounted to a total of €5.5 billion across 4200 commodities, dominated by machinery including nuclear reactors, boilers, and other electric machinery (~46%), and organic chemicals (~6.6%).
Italy is India’s 4th largest EU trading partner, with cumulative FDI from Italy into India at €3.3 billion between April 2000 and March 2025. Growth supported by India–EU FTA talks, and Italy’s €500 million planned investment in 2026, is targeting sectors like pharma, maritime, and digitalisation. Evidently, diversifying supply chains and leveraging IMEC are central to the agenda. With this robust economic foundation, both countries are poised to address key opportunities and challenges in operationalising IMEC.
During a recent one-on-one meeting with the author at CSEP, Ambassador Talo offered valuable insights, advocating for the development of an Indo-Mediterranean vision akin to the Indo-Pacific strategy and urging the integration of climate change concerns into IMEC. He suggested that sectoral growth should aim to complement, not compete with, Suez Canal traffic. He further emphasised the importance of broader regional engagement, enhanced maritime and underwater security, and innovation in energy and data infrastructure. He recommended exploring alternative transit points such as Cyprus and Greece (for decongesting and rapid evacuation from Haifa, Israel) and India–Dar es Salaam–North Africa and India–Dar es Salaam–Lobito corridors, as well as leveraging Italy’s expertise in gas and hydrogen investment, submarine cables, shipbuilding, and research collaboration. Ultimately, he called for a move beyond the narrow concept of a corridor, aspiring towards a much wider network spanning new African and Balkan routes.
Looking ahead, India may want to explore avenues to deepen its partnership with Italy beyond IMEC. These may include establishing a risk-monitoring unit for the corridor and negotiating blended-finance agreements. Exploring an India–Italy Infrastructure Investment Forum (I4F) for bilateral investments and tri-lateral opportunities in Africa, the Middle East, and the Balkans might be worthwhile. India may want to consider embedding technology transfer clauses into various arrangements, coordinating with EU regulators to pre-empt roadblocks. Conducting community engagement roadshows to build grassroots support and anticipate social pushback with all stakeholders (within and outside India) would be another crucial aspect from India’s perspective.
Collaborations towards investments in container manufacturing, shipbuilding (manufacturing to services), technological upgrades for Indian firms doing business with the EU, and collaborations in space, defence, and intelligence, including electronics, AI, and supercomputers, may also be explored. Furthering the Indian Space Research Organisation (ISRO)–Agenzia Spaziale Italiana (ASI) collaboration beyond space research, earth observation, and lunar exploration to include “satellite-enabled monitoring and data services” involving private sector players can be another important initiative.
India may also want to explore security research pertaining to Trojan horses, undersea cables, pipelines, and harbours in collaboration with Italian institutions, companies, agencies, shipbuilders, and research centres at La Spezia. India may also want to consider leveraging the expertise of the National Pole for the Underwater Dimension (PNS) and NATO’s Centre for Maritime Research and Experimentation, hosted by the Italian National Board for Underwater Security.
The European Commission and India have launched development cooperation under the EU Global Gateway framework, focusing on digital public goods, clean energy, and sustainable infrastructure. At the multi-lateral level, IMEC’s formal alignment with pan-European digital ID and customs-union standards for Customs Harmonisation and Cross Border Digital Payments through joint taskforces might prove to be yet another crucial aspect for integration.
The Italy–India Joint Strategic Action Plan (2025-2029) provides for political and strategic dialogues and annual Foreign Office consultations. India and Italy may need to step up on Sherpa-level meetings under IMEC’s governance and establish a co-chairing mechanism with stakeholders, shaping both routine operations and crisis-response frameworks.
