The Potential for Expanding India-Mediterranean Cooperation

With the changes in the global economy and the rapid development of relations, the potential for cooperation between India and the Mediterranean region has never been more exciting. There is a noticeable shift in India’s foreign policy towards building connections beyond its immediate neighbourhood. The Mediterranean region’s strategic location, historical links and historic significance make it an ideal fit for India’s plans to expand trade and infrastructure links beyond its hinterland.

India’s involvement in the India-Middle East-Europe Corridor (IMEC), announced in 2023 on the sidelines of the G20 summit in New Delhi, underlines how important the Mediterranean region is becoming. IMEC aims to strengthen economic ties and facilitate trade between India, West Asia and Europe through key ports in West Asia and the Mediterranean. In fact, the success of the corridor depends on significant infrastructure investments in the Mediterranean, particularly in port development, rail connectivity and logistics hubs.

IMEC cannot be just another infrastructure project – it must be seen as having the potential to transform the very fabric of global connectivity and cooperation. IMEC is more than just a corridor. It is a vision. A vision that aspires to connect continents, cultures and economies, linking Asia, the Gulf and Europe. It is an ambitious plan that aims not only to stimulate economic growth but also to foster deeper ties in a region that has been at the crossroads of global trade for centuries.

For India, this project is of paramount importance. IMEC must be conceived and implemented not just as a path of economic engagement, but as a strategic imperative. As a nation that sits at the nexus of Asia and the Persian Gulf, India has long recognised the importance of connectivity in driving economic growth and fostering stability. Success in IMEC would mean not only improved trade routes but also opening new avenues for economic cooperation with key regions across West Asia and Europe. For India, it is about strengthening our links with old and new partners, ensuring energy security and reasserting our role in the evolving global order.

The recent CII – India Mediterranean Business Conclave in New Delhi observed that while there is a huge potential for India and the Mediterranean region to expand their cooperation, the manufacturing sector has the potential to become the backbone of this relationship. India is one of the most admired and fastest growing economies in the world and much of this success is down to the efforts of its industries. It is largely driven by the bold steps and innovations taken by companies in India, which have played a huge role in the country’s growth story.”

Speaking at the event, Piyush Goyal, Minister of Commerce and Industry, also emphasised the need for deeper business relations, pointing out that “smoother logistics, faster connectivity and safe trade depend on better cooperation in this space”. He further highlighted initiatives like the PLI scheme, the Centre’s efforts towards Ease of Doing Business (EoDB) through FTAs ​​and economic partnerships that have bolstered India’s manufacturing growth story and the country’s efforts to promote agri-value chains. Such programmes and agreements play a huge role in supporting initiatives between India and the Mediterranean countries.

Beyond its traditional sectors, India is fast becoming a global leader in innovation, particularly in green technologies. As Mediterranean countries work to adopt more sustainable practices, India’s expertise in renewable energy presents a huge opportunity. Looking ahead, experts believe several areas could benefit from deeper cooperation between India and the Mediterranean region. Renewable energy is a key area, with Mediterranean countries investing heavily in solar and wind projects. India’s ability to deliver affordable, large-scale renewable energy solutions makes it a valuable partner for these countries.

Other sectors, such as textiles and pharmaceuticals, are already making inroads into Mediterranean markets. The partnership is particularly promising because of the complementarity between India’s young workforce and the labour shortages in the Mediterranean region.

While the potential for both regions to cooperate and increase trade and investment is enormous, there are a number of potential challenges and opportunities that may stand in the way of India and the Mediterranean countries realising the full potential of this cooperation. One of the main issues is regulatory alignment – ​​different rules and standards in different regions can make collaboration difficult, so it’s crucial that everyone is on the same page when it comes to industry regulations. Trade barriers, such as tariffs and restrictions, also pose a threat to the free flow of goods and services. Policies that reduce these barriers and streamline customs processes will need to be prioritised. Infrastructure also plays a key role; without adequate investment in logistics, transport and digital networks, building a seamless manufacturing ecosystem becomes difficult. Developing skills is another piece of the puzzle.

While both India and the Mediterranean countries have a skilled workforce, emerging technologies mean that continued upskilling will be necessary to remain competitive. Furthermore, sustainability cannot be ignored – any partnership must focus on reducing environmental impact and meeting global environmental goals. Finally, geopolitical stability is key. Tensions in the region can easily disrupt business operations, so maintaining strong diplomatic ties and securing stable trade agreements will be essential for long-term success.

To strengthen the India-Mediterranean partnership, there are a number of practical steps that both regions can take. First, the creation of a Bilateral Manufacturing Council would provide a dedicated space for governments and industries to work together, align on goals and resolve regulatory issues. This would ensure that everyone is pulling in the same direction. Encouraging joint research and innovation would also help, while co-investment in R&D would lead to breakthroughs in manufacturing technology and products tailored to local markets. Trade missions and business exchanges could open doors to exploring new opportunities and partnerships, giving companies the chance to connect and grow. Another key area is infrastructure — investing in projects that improve logistics and connectivity will facilitate the movement of goods and materials between regions. In addition, both regions should focus on skills programmes that cover not only new technologies but also traditional manufacturing techniques, which would help keep the workforce competitive. Finally, by collaborating on sustainable production initiatives, India and the Mediterranean can lead the transition to greener economies. These actions will not only strengthen economic ties but also lay the foundation for long-term, sustainable cooperation.

The potential for collaboration between India and the Mediterranean region in manufacturing is enormous. By recognizing each other’s strengths, building solid partnerships, and addressing the necessary policy challenges, we can pave the way for a successful future. Both sides must seize this opportunity to set a new standard for global collaboration.

The author of the article is Shishir Priyadarshi, president, Chintan Research Foundation, New Delhi.