India-Egypt Relations

The visit of Prime Minister Narendra Modi to Egypt demonstrates the expanding cooperation between the two nations and their attempts to deepen their bilateral ties.

Highlight of visit

For the first time since 1997, the prime minister of India visited Egypt to discuss their bilateral ties.

An important development in the bilateral relationship between India and Egypt was the signing of a strategic cooperation agreement during the visit.

To further their cooperation, India and the Egypt inked three Memorandums of Understanding in the areas of agriculture, archaeology and antiquities, and competition law.

Over 4,300 Indian soldiers who died in Egypt and Aden during World War I were honoured in the Heliopolis Commonwealth War Grave Cemetery by the Indian PM.

Egypt was chosen to be a "guest country" at the upcoming G-20 meeting, which will take place in September, further solidifying bilateral ties between the two countries.

India’s Interest in Egypt:

India intends to increase its investments in Egypt, particularly in significant infrastructure initiatives around the Suez Canal and in Alexandria and Cairo's special economic zones. India intends to provide radars, the DRDO's Smart Anti-Airfield Weapon, the LCA Tejas, and missiles like the Akash.

Egypt is a sizable nation with a 378 billion USD economy and 105 million inhabitants. Its socioeconomic conditions are very comparable to those in India, and it has a stable political system.

The world's greatest importer of wheat, automobiles, maize, and pharmaceuticals, as well as refined petroleum, are Egypt's top imports. India has the capacity to provide all of these items.

Historical prespective

India and Egypt, two of the oldest civilizations in the world, have a long history of close engagement.

The edicts of the Ashoka speak about his interactions with Egypt under Ptolemy II.

In the contemporary era, Saad Zaghloul and Mahatma Gandhi had similar aspirations for the freedom of their nations.

This connection would later develop into a very close friendship between the President Nasser and Prime Minister Nehru, which resulted in the signing of a Friendship Treaty between the two nations in 1955.

During the 1956 Suez Crisis, India denounced the attack on Egypt and attempted to intervene.

Both nations contributed to the Non-Aligned Movement's (NAM) establishment in 1961.

Political Relation

Based on a long history of contacts and collaboration on bilateral, regional, and international problems, India and Egypt have a strong political knowledge of one another. On August 18, 1947, the creation of diplomatic ties at the ambassadorial level was jointly announced. Both nations were founders of the Non-Aligned Movement and have worked closely together in multilateral fora. Since 2022 would commemorate the 75th anniversary of India and Egypt's diplomatic relations, it bears special significance.

Financial Relations

One of India's most significant trading partners on the continent of Africa historically has been Egypt. The Most Favoured Nation Clause underlies the India-Egypt Bilateral commerce Agreement, which has been in effect since March 1978. In the past ten years, the bilateral commerce has expanded by more than five times. The value of the two-way trade in 2018–19 was $4.55 billion USD. Despite the Pandemic, trade volume only slightly decreased, from US$4.5 billion in 2019–20 to US$4.15 billion in 2020–21.

In 2022–23, India's trade with Egypt reached USD 6,061 million, a 17% decrease from the previous year.

In 2022–2023, Egypt was India's 38th largest trading partner while India was Egypt's sixth.

Over 50 Indian companies have already made investments in Egypt, and Egypt is looking for Indian capital for infrastructural projects.

Military Relations

Egypt and India have friendly defence ties. In the 1960s, the Air Forces worked closely together to jointly develop a fighter aircraft. From the 1960s to 1984, IAF pilots also trained Egyptian pilots. Defence delegations have made many high-level exchange visits since 2015

a similar understanding of terrorism. They have worked together on developing and training fighter aircraft. Both nations use French Rafale fighter aircraft. Recently, the Indian and Egyptian armies participated in their first-ever drill, drill Cyclone-I, which was held near Jaisalmer.

Cultural Relations

Through monthly events like Hindi, Urdu, and yoga courses, seminars, film screenings, exhibitions, and involvement in regional cultural activities, the Maulana Azad Centre for Indian Culture (MACIC) has been fostering cross-cultural interaction. As part of its outreach initiatives, MACIC frequently hosts India Days in universities and governorates throughout Egypt.

An MoU was recently inked between Prasar Bharati and the National Media Authority of Egypt to facilitate content exchange and co-productions.

Challenges

Both nations deal with the threat of terrorism and extremism; at the moment, China and Egypt have more bilateral trade than India does.

The regional stability in the Middle East and North Africa is a worry for both Egypt and India.

The massive financial commitments of the Egyptian economy have occurred at the same time as a stagnant economy, epidemic, global downturn, and the conflict in Ukraine.

On significant international topics, there have been disagreements. For instance, Egypt has not always agreed with India's attitude regarding UNSC reforms.

Other international and regional powers, such as the United States, members of the European Union, Russia, and the Gulf States, are actively interacting with Egypt in addition to China. India may have diplomatic difficulties in managing its relationship with Egypt in the face of rivalry from these nations.

Conclusion

The goal for both countries should be to boost investment and trade. India ought to take into account negotiating an FTA with Egypt. Egypt might benefit from India's knowledge in industries like IT, healthcare, and pharmaceuticals. Opportunities for Indian investments in Egypt should also be looked into at the same time.