New economic corridor to link India, Middle East and Europe

US President Joe Biden, Indian Prime Minister Narendra Modi and other world leaders have unveiled a project to create a rail and shipping corridor linking India, the Middle East and Europe.

The initiative to build the new economic corridor was announced at a news conference on Saturday on the sidelines of the Group of 20 summit in New Delhi. Saudi Arabian Crown Prince Mohammed bin Salman and European Commission President Ursula von der Leyen also attended.

Biden called the agreement "historic," saying it would make it easier to trade and export clean energy. He said it will contribute to a more stable and more prosperous Middle East.

A senior official at the White House explained that participating countries will work on plans such as establishing financial mechanisms.

The new initiative is seen as an effort to counter China's Belt and Road Initiative. China is building large-scale infrastructure such as railroads and ports in Asia and Europe.

Israel is also on the route of the new project. Attention is focused on whether it would help improve Israel's relations with Saudi Arabia.