However, a Reuters report quoting US officials points out that it is not certain whether the announcement of this mega infra project will be made in conjunction with the G20 summit starting this week in New Delhi. At the same time, the Reuters report indicates that the discussions with India and other countries regarding the massive infrastructure development project have been going on for months and progress has been made on the matter.
Meanwhile, US President Joe Biden’s national security adviser, Jack Sullivan, refused to comment on whether there would be any big announcements at the G20 summit. However, he clarified that the project is one in which the US and its allies will invest. In another Bloomberg report, Jack Sullivan said that the transport link from India through the Middle Eastern countries to Europe will be a very crucial step and will bring enormous economic benefits to all these cooperating countries.
Earlier this year, Jack Sullivan visited Saudi Arabia to discuss the project. Representatives of India and UAE also participated in the discussion. Meanwhile, US President Joe Biden returned to India to attend the G20 summit. The report also indicates that the infrastructure development project will be discussed with Indian Prime Minister Narendra Modi and Saudi Crown Prince Mohammed bin Salman here.
Why is it important?
The US is initiating this massive infrastructure development project to counter China’s growing influence over the Gulf states. Middle Eastern countries are a key element in China’s Belt and Road Initiative. The move is also part of the Biden administration’s effort to strengthen ties with Saudi Arabia. In addition to the agreement between Saudi Arabia and Israel, Biden intends to make the India-Gulf Rail project a major campaign issue for the 2024 election. There is also the advantage that if the rail project becomes a reality, it will save a lot of time and money wasted on shipping goods by ship.