ABU DHABI: The proposed India-Middle East-Europe Economic Corridor will help reduce transaction costs and encourage trade, Commerce and Industry Minister Piyush Goyal said on Thursday.

Last month, the ambitious India-Middle East-Europe Economic Corridor (IMEC) was jointly announced by leaders of the US, India, Saudi Arabia, the United Arab Emirates, France, Germany, Italy, and the European Union on the sidelines of the G20 summit in New Delhi.

The new economic corridor is seen as an alternative to China's controversial Belt and Road Initiative (BRI).

The corridor will help in "reducing logistics costs and encourage trade," Goyal said here at the UAE India Business Round table meet.

The minister is here for the 11th Meeting of India-UAE High-Level Task Force on Investments.

He added that India provides huge potential for investors in areas such as infrastructure, education, and healthcare.

Speaking at the event, CII President R Dinesh said India is emerging as a major manufacturing destination and UAE investors should explore opportunities.