The imminent visit of Prime Minister Narendra Modi to Egypt has enormous potential for revitalising India-Egypt relations. While previous meetings have been positive, the bilateral partnership has yet to make significant progress. On January 26, 2023, Egyptian President Abdel Fattah El-Sisi was also the chief guest during the seventy-fourth republic day ceremonies.
India and Egypt have historical ties
- Maritime Trade in Antiquity: Historical evidence reveals that ancient India and Egypt had marine trade links. Pharaoh Sahure dispatched ships to the Land of Punt, which is thought to be peninsular India, about 2750 BCE. This implies that the two civilizations had early commerce and cultural contacts.
- Cultural interactions: Throughout history, there have been examples of cultural interactions between India and Egypt. During the middle of the second millennium BCE, Indian indigo-dyed muslin was used to wrap Egyptian mummies.
- Ancient Civilizational Links: The Indus Valley Civilization in India and the ancient Egyptian civilization are two of the world’s oldest and most advanced civilizations. These civilizations have left a legacy of art, architecture, literature, and philosophy that demonstrates our common human heritage.
- Egyptian ideas and concepts, such as the concept of life after death, have impacted several ancient Indian philosophies and religious systems. There are parallels between ancient Egyptian and Indian societies in symbolic representations, rituals, and beliefs.
The current state of Indian-Egyptian commerce
- Volume of Trade: The overall trade between India and Egypt in fiscal year 2022-23 was $6,061 million. However, this figure represented a 17% decrease from the previous year, indicating a temporary setback in commercial relations.
- Composition of Trade: Petroleum is a key component of trade between the two countries, accounting for almost one-third of overall trade volume. Other key items in the trade besides petroleum include refined petroleum, wheat (Egypt is the world’s largest wheat importer), vehicles, maize and medicinal products.
- Trade Rankings: India is Egypt’s sixth-largest trading partner, demonstrating the country’s prominence in the Egyptian market. However, Egypt ranks 38th in India’s overall commercial relations, indicating possibilities for future expansion and diversification.
- Investment Scenario: Indian investments in Egypt reach $3.15 billion and are dispersed over 50 projects. Notably, a large percentage of this investment is coming from a single corporation. Egypt’s investments in India, on the other hand, total only $37 million.
- Indian Presence in Egypt: There are fewer than 5,000 Indians in Egypt, with roughly one-fifth of them being students. This implies a relatively limited presence of Indians in the country.
Reasons for the underperformance of bilateral relations between the two countries:
- Despite decades of diplomatic engagement and different institutional frameworks, the bilateral relationship has yielded few significant results. While there has been goodwill and verbal interactions on themes such as decolonization and non-alignment, there has been little actual progress.
- Economic Factors: The fall in trade volume and limited investment flow between India and Egypt point to economic difficulties. According to the article, trade between the two nations has decreased by 17% in recent years, and India’s investments are primarily focused on a few projects. Economic crises such as currency depreciation, high inflation, and financial restraints have had an impact on Egypt’s economy and bilateral trade and investment.
- Contact with people is limited: The presence of a small Indian community in Egypt, with less than 5,000 Indian residents, indicates that people-to-people relations are limited. A more diverse network of persons and experts from both nations could help to strengthen bilateral connections.
- Bureaucratic Inefficiency: The presence of numerous institutional procedures such as joint commissions, working groups, and consultations indicates the presence of a bureaucratic framework. However, the article implies that these processes’ efficacy and feeling of purpose may be weak, resulting in little advancement in actual outcomes.
- Egypt has economic issues such as a stagnant economy, pandemic-induced slowdown, and global economic swings. These issues have had an impact on the general economic environment, posing difficulties for trade and investment prospects.
Source: https://pib.gov.in/PressReleaseIframePage.aspx?PRID=1885366