The decades-old relationship between India and Egypt is going to get a new dimension this time on January 26. This day is very special for both the countries. Egyptian President Abdel Fattah al-Sisi will be the chief guest at the Republic Day celebrations this year. This will be his third Indian tour. There is not only diplomatic, but also big business cooperation between the two countries. In the last few years, trade between India and Egypt has increased a lot. However, the economic condition of Egypt is also as bad as that of Pakistan and India is playing the role of a friend well. Even though Egypt is a Muslim country, it has always been opposing Pakistani policies and terrorism.
Growing trade between the two countries
According to the PIB report released after the fifth meeting of the Joint Trade Committee of the India-Egypt Joint Trade Council held in Cairo on 25-26 July 2022, the trade between the two countries in 2021-22 compared to the previous financial year 2020-21 There has been an increase of 75 percent in Giving information, India’s Ambassador to Egypt Ajit Gupte has also told that the ongoing bilateral trade between India and Egypt is at its highest level.
Business aims to reach $12 billion
If we look at the data of the financial year 2021-22, the trade between India and Egypt crossed $ 7.26 billion. It is expected to reach $12 billion in the next five years. While Egypt is one of the most important trading partners of India, India is the sixth most important trading partner for Egypt. Bilateral trade agreement is in force between the two countries since 1978. There has been a lot of growth in the business in the last few years. In ten years, the import-export between the two countries has increased almost five times.
Both countries are major trading partners
If we look at the trade between the two countries, it comes to the fore that India exports more to Egypt than imports. Egypt is a big importer of food items and buys most of its requirement from other countries, India’s name is also included in this list. Recently, when India had banned the export of wheat, even then many tonnes of wheat was sent to Egypt.
Let us tell you that Russia and Ukraine (Russia-Ukraine) are the main countries that export wheat to Egypt, about 80 percent of the required wheat is available from here. But due to the impact of the war between the two countries on the supply chain, the wheat shortage in Egypt had reached its peak. After this, Egypt started importing wheat from India on a large scale and in June 2022, 1.8 lakh tonnes of wheat was sent from India. Apart from this, Egypt exports cotton yarn, sesame seeds, coffee, herbs, tobacco and pulses from India.
On the other hand, if we talk about the goods bought by India from Egypt, Egypt is India’s third largest exporter in terms of fertilizer exports. The names of Saudi Arabia and Oman come on the first and second numbers respectively. India imports large quantities of leather and iron products including crude oil, fertilizers, cotton and these organic chemicals from Egypt.
Import-Export of Corona Vaccine
Apart from these essential goods, there is import-export of medicine between the two countries. During the outbreak of the Covid-19 pandemic, there was a lot of trade between India and Egypt in the case of Corona vaccine. According to the report, during Kovid-19, Egypt had bought 50 thousand vaccines from India in the beginning of 2021. Whereas, during the second wave of Corona, India had ordered about 3 lakh doses of Remdesivir manufactured in Egypt.
facing severe financial crisis
Even though the trade relations between India and Egypt are deep. But like Pakistan, which is currently facing the biggest economic crisis, the financial condition of this Muslim country is also in a bad shape. Egypt is also surrounded by a big economic crisis at this time. Inflation rate in Egypt is also almost equal to that of Pakistan. Where the inflation in Pakistan has reached 24.5 percent, the people of this country are also forced to cry because of the 24 percent inflation rate.
Egypt is also trapped in the vortex of debt
The condition of Sri Lanka by being trapped in the debt trap is not hidden from anyone, something similar is happening in neighboring Pakistan as well. On the other hand, the situation in Egypt is also not very different and if we talk about foreign debt on this country, it has increased to 170 billion dollars. When no other Muslim country supported Egypt, which was struggling with this economic crisis, then India held its hand while introducing its friendship. India is fully helping Egypt to get out of this food crisis, which is facing severe shortage of wheat and rice.
Why does India like Egypt?
Why does India like Egypt’s friendship despite being a Muslim country? A big reason for this can also be that this country has always raised its voice against terrorism. In the OIC (Organization of Islamic Cooperation) organization of Muslim countries, it has always been against Pakistani policies. Apart from India, Israel and America have also come forward to help Egypt in this hour of crisis.
Identification of many areas in terms of investment
India-Egypt are constantly emphasizing on furthering mutual business cooperation. During the review of recent progress in trade and investment relations, several new areas were also identified in the direction of increasing investment last year. These include food and agriculture, marine products, energy especially renewable energy including green hydrogen and green ammonia, health and pharmaceuticals, petrochemicals, MSMEs, engineering goods, manufacturing, IT and IT services, tourism etc.
Indian investment increased employment opportunities
Talking about the investment of Indian companies, about 50 Indian companies have made huge investments in Egypt. This includes investment made in chemical, energy, automobile, retail, apparel and agriculture sectors. According to PIB data, till the financial year 2021-22 it was more than $ 3.2 billion. More than 30,000 people are getting direct employment there through this investment.