The favorable timing of IMEC's emergence

Greece aspires to play a key role in the India-Middle East-Europe Economic Corridor (IMEC), which it views as an opportunity to foster strong economic relations with India and the wealthier countries of the Persian Gulf.

IMEC is a grandiose project with a central geostrategic goal of strengthening economic cooperation along its length. It is India's demonstration of its emergence as Asia's largest economy and a challenge to China. The economic corridor is essentially the rival of China's "Belt and Road Initiative," also known as the New Silk Road.

In the context of the competition between China and the United States, the American government has embraced IMEC, with President Donald Trump describing the project as "one of the greatest trade routes in history" during the visit of Indian Prime Minister Narendra Modi to Washington.

Greece aspires to play a key role in IMEC, which it sees as an opportunity to build strong economic relations with India and the wealthy countries of the Persian Gulf (especially Saudi Arabia and the United Arab Emirates).

Within this framework, initiatives such as the recent launch of the India-Greece-Cyprus Business and Investment Council (IGC) are included, with Eurobank playing a central role, aiming to finance Indian investments in Greece and Cyprus, as well as Greek investments in India.

Eurobank will open its permanent representative office in Mumbai in the coming months, through which it wishes to facilitate economic and commercial cooperation between the three countries. Moreover, since early 2024, the bank has signed an agreement to use the UPI payment system for cross-border payments with India.

Several Greek companies already have a presence in India. For example, Greek coffee chains Coffee Island and Mikel have started operating stores in India, which presents great growth prospects for the coffee market - and especially the freddo espresso.

At the same time, larger investments by Greek companies in India are being considered, especially in the fields of medical products and defense. Moreover, by early 2027, Aegean will offer a direct daily flight connection between Greece and India.

The investments

On the other hand, some large Indian companies have invested in Greece, such as the construction company GMR, which has undertaken – together with GEK TERNA – the construction of the new airport in Kastelli, Crete.

As stated by Alok Srivastava, the Chief Financial Officer (CFO) of GMR's subsidiary in Greece, at the opening of the IGC Council in Athens, the company aims to continue investing in Greece - not only in airports but also in ports and other infrastructure.

In order to secure Greece's active involvement in IMEC, it is considered crucial to concede a port to India, or at least Indian-friendly, interests. The port of Piraeus is under Chinese control through COSCO, making the venture more challenging.

There is movement in Thessaloniki, with the French Terminal Link attempting to gain full control of the port, causing the departure of Ivan Savvidis. As France supports IMEC, the possibility of the corridor passing through Thessaloniki is not ruled out, but the French claim to become India's main gateway to Europe with Marseille.

In any case, however, there is interest from India in the smaller ports of Volos and Kavala, with the Adani Group, led by the eponymous billionaire Indian tycoon, having expressed an – albeit immature for the time being – interest in the port of Magnesia.

Relations with Turkey

In the coming months, relations between Greece and India are expected to continue developing both economically and politically.

Moreover, India has tense relations with Turkey due to the support the latter provides to Pakistan, as was evident during Operation Sindoor.

With the renewed US support for the IMEC project, Greece is betting on its emergence as an important partner in the economic corridor, which has the potential to bring significant investment capital at a time when increasing investment is considered key, especially given the expiration of the Recovery and Resilience Fund at the end of 2026.

READ MORE: Ambassador Chrysanthopoulos: Greece and India can act as bulwark against Erdogan.