Indo Egypt Relationship

To understand the current dynamics we have to delve a little into the geopolitical developments that bring the two countries together. Both countries need each other.

I) Spring board into Africa - Its strategic location at the crossroads of Africa, Asia, and Europe make Egypt a very important country for effective trade. An added advantage is that, its ports and infrastructure are well-developed to handle large volumes of cargo. Establishing Indian industrial zones in the strategic Suez Canal region would facilitate seamless connectivity and enhance Egypt’s pivotal role in international commerce. This would enable India to bring its manufacturing capabilities to Africa’s expanding markets, covering various sectors such as electric vehicles, pharmaceuticals, and electronics.

II) Offsetting China's influence - China has made deep inroads in Africa. With Egypt, a regional leader which has played an important role in regional organizations such as the African Union and the Arab League, on its side, India hopes to erode the influence of China in the continent.This makes Egypt a key player in shaping trade policies and agreements in Africa as far as India is concerned. Why Egyptian President’s visit to India is important to limit China’s regional influence

III) Easy access to shipping lanes - The Suez Canal, allows for the passage of ships between the Atlantic and the Indian Oceans. It also reduces transit times for trade between Africa and the rest of the world.

IV) Barter Trade - The Egyptian economy is reeling under the shock that the pandemic dealt to its tourism sector. Soaring inflation and a tumbling Egyptian pound prompted foreign investors to pull about $20 billion out of its financial markets. So the Egyptians are keen on this deal India weighs barter trade with Egypt

V) Taking the Rupee to the world - For India, it is a step further in the right direction to globalising the Indian Rupee, as the agreement would allow Egypt to make certain purchases in rupees Egypt looking to pay for imports from India in rupees: Report

VI) Strategic Partnership -

The joint declaration for this purpose was signed on PM Modi's recent visit. India and Egypt had signed a security cooperation agreement in 2022 which enabled the two countries to engage at tri-service levels talks and in cooperating on various aspects of security and defence.Egypt is the biggest importer of wheat and India is interested in supplying food to the otherwise grain-starved MENA region.

1. Egypt is rich in fossil fuels and produces fertilizer which India is interested in.
2. Egypt is among the several countries that has shown interest in Indian arms.
3. Egypt views its relations with India as a ladder to the BRICS economic bloc.

VII) Countering Religious radicalisation - Faced with rising Islamic terrorism many countries in the ME favour a return to moderate Islam. This is true even in the case of Wahaabist Saudi Arabia Crown prince says Saudis want return to moderate Islam

Analysts believe that under the leadership of President Sisi, Egypt has become a moderate Sunni Muslim country. President Sisi showed his firmness against the Muslim Brotherhood and its radical affiliates all over the ME India, Egypt join hands to counter religious radicalisation

VIII) Countering Turkiyè - The headquarters of the Arab League is in Egypt and the country is considered a leader of the Arab World. There is an ongoing tussle between various Islamic countries of the ME especially Türkiye, which is a legatee of the Ottoman Empire, over the leadership of the Islamic world.

IX) Make in India and Defence Exports - Egypt’s pursuit of a self-reliant defence industry aligns with India’s defence capabilities, offering an alternative to costly Western imports, very cheap and low quality Chinese options and Russia options. Development of its domestic defence industry is near to Egyptian hearts and is exemplified by Egypt’s interest in India's indigenous Tejas LCA Mk-1A aircraft Tejas charms Egypt, Cairo eyes gaining advanced production knowledge | Details

Egypt can be a pivotal gateway for India to expand its defence capabilities and access the lucrative African market.

X) Global South considerations - Both the countries reject the notion of a world order solely shaped by major powers. Like India Egypt has positioned itself as a prominent advocate for the Global South, particularly in Africa. Egypt has established itself as a vital bridge-builder between the Global South and North, East, and West India bolsters ties with Global South heavyweight Egypt

The fact that both nations need each other can be seen in these words, which express the prevailing sentiments in either camp.

The Prime Minister of India lent credence to this view, when he posted this on his Twitter handle

The establishment of a cultural center in Cairo, the launch of a new direct air link between Delhi and Cairo, and the creation of a joint research center on water and sanitation and cooperation on civilian nuclear energy, are all geared to further strengthen and cement the reaction.