Egyptian-Indian relations are gaining fresh momentum according to the desire shared by President Abdel Fattah El Sisi and Indian Prime Minister Narendra Modi to take them to a new level.
India and Egypt also share close political understanding based on a long history of contacts and co-operation on bilateral, regional and global issues.
Modi’s current visit to Egypt shows that relations between both countries, which are based on respect for the law and the UN Charter, have been, and will remain friendly and steadfast.
Both India and Egypt, inheritors of two of the world’s oldest civilisations, founded the
Non-Alignment Movement (NAM) during the time of President Gamal Abdel Nasser and Indian Prime Minister Jawaharlal Nehru in 1955. A strong relationship emerged between the two countries since then encompassing political, economic, military and cultural fields. Partnership between both countries was further strengthened with successive visits by India’s foreign and defence ministers to Cairo. In addition, President Sisi’s visits to India in October 2015, September 2016, and in January this year, gave further impetus to bilateral ties.
In light of the recent investment incentives introduced by Egypt, India is looking forward to invest more in Egypt and boost trade exchange between the two countries by increasing the participation by Indian companies in national projects. Bilateral trade expanded by 75 per cent in 2021-2022 to reach its highest-ever level of $7.26 billion, which is expected to rise to $12 billion within the next five years.
Fifty Indian companies operate in Egypt, providing 38,000 jobs, investing over $3.2 billion in chemical, energy, automobile, retail, apparel and agriculture. Egypt is planning to allocate a plot in the Suez Canal Economic Zone (SCZone) specifically for Indian firms.
The two sides are also expected to announce a trade agreement whereby India will barter for Egyptian fertilisers and gas as part of a wider deal that could see New Delhi extending a credit line worth several billion dollars. The agreement would allow Egypt to make purchases in rupees to sidestep its persistent foreign currency shortage and settle the debt through the sale of Egyptian products.
Modi’s visit to Egypt reflects the desire of both countries to elevate the long-standing relations between the two countries to a higher level. The leaderships of both countries are moving with the same determination to fulfill a better future for their peoples.
Mohamed Fahmy is the editor-in-chief of The Egyptian Gazette and Egyptian Mail newspapers
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