Inside India newsletter: How the war in the Middle East is set to determine India's trade route to Europe
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By Priyanka Salve
Published on March 12, 2026.
The escalating U.S.-Israel war with Iran is forcing India to reassess its two major trade corridors, the India–Middle East–Europe Economic Corridor (IMEC), and the International North–South Transport Corridor, which aims to reduce transit costs and time to Europe. The IMEC would connect India to Europe via Iran's Chabahar Port and Israel's Haifa Port via a railway corridor. However, experts suggest that only one of India's two grand connectivity bets has a realistic future to support India's export ambitions: IMEC. This is expected to reduce logistical costs by up to 30% and transport time by 40%, compared to traditional routes like the Suez Canal. However the conflict's outcome of the conflict will determine how IMEC evolves. The success of IMEC hinges on regional stability with India's economic ties with China and the stability of regional supply supply.
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