India-Middle East-Europe Economic Corridor: Outgoing US Ambassador Eric Garcetti Says IMEC Must Steer Clear of Subsidised Debt Traps

Outgoing United States Ambassador to India, Eric Garcetti, has called for renewed enthusiasm from India, the US, and Gulf partners in advancing the India-Middle East-Europe Economic Corridor (IMEC).

Speaking to The Hindu, he acknowledged that the project had “hit a pause” due to the ongoing conflict in West Asia but stressed its importance.

He also highlighted the need to avoid State-controlled companies that could pose threats.

“I think IMEC is very important, and the vision laid out by India and the United States is that we have to ensure that it’s built by companies who are not just State actors, heavily subsidised, creating debt traps for countries,” said Garcetti.

He was responding to a query about the trade proximity of some of the nations in the proposed IMEC, with China.

“We need companies that are not going to be controlled by State actors that are threats,” he said in his speech that comes months ahead of the end of his two-year tenure.

On economic ties, Garcetti noted the US remains India’s largest trading partner but highlighted a trade imbalance. 

“We’re very proud to be India’s number one trading partner. But we do have a trade deficit with India... I do share President Trump’s vision that our tariffs are still too high here,” he said.

Garcetti also touched upon the indictment of the Adani Group by the U.S. stock market regulator, asserting the independence of the US criminal justice system. 

He declined to speculate on the likelihood of Prime Minister Narendra Modi attending President Trump’s upcoming inauguration.

Highlighting defence cooperation, he pointed to joint military projects, exercises, and weapon technology sharing as critical elements of U.S.-India relations.

“I’m fond of saying that the U.S. and India, our relationship is not additive, it is multiplicative,” Garcetti remarked, emphasising the shared vision in vaccine development, international trade, and global governance.

With his two-year tenure nearing its conclusion, Garcetti reiterated the strategic importance of the US-India partnership in trade, defence, and cultural cooperation. 

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