Recently, the Indian Prime Minister embarked on a crucial visit to Egypt for the first time in over two decades, aiming to strengthen the bilateral relationship and discuss significant global issues. A high honour from the Egyptian government, the ‘Order of the Nile’, was bestowed upon the Prime Minister during this visit. It is pertinent to note that this prestigious recognition, established in 1915, is presented to distinguished leaders who have made commendable contributions to Egypt or humanity at large.
Strategic Partnership Agreement and Memorandums of Understanding
This landmark visit marked the signing of a strategic partnership agreement between India and Egypt, reflecting a significant milestone in their bilateral ties. The central pillars of this strategic partnership comprise political defence and security, economic engagement, scientific and academic collaboration, and cultural and people-to-people exchanges.
Additionally, three Memoranda of Understanding (MoUs) in agriculture, archaeology and antiquities, and competition law were signed. Such collaborations are expected to bolster cooperation in these fields further.
India Unit in the Egyptian Cabinet and Other Highlights
The Indian Prime Minister had fruitful discussions with the Egypt President on various topics, including multilateral cooperation at the G-20, food and energy security, climate change and clean energy collaboration. The Indian PM also interacted with the India Unit, a ministerial group created by the Egyptian President to enhance bilateral relations, underlining the commitment of both countries to fostering stronger ties.
During his visit, he paid tribute to the Indian soldiers who lost their lives in Egypt and Aden during World War I at the Heliopolis Commonwealth War Grave Cemetery.
Furthermore, Egypt has been invited as a ‘guest country’ at the upcoming G-20 summit, signalling another step towards deepening ties. The Indian Prime Minister also visited the 11th-century Al-Hakim Mosque, restored by India’s Dawoodi Bohra community, reflecting the profound cultural links between the two nations.
Tracing Back India-Egypt Relations
India and Egypt’s relationship can be traced back to the era of Emperor Ashoka, with subsequent turning points in modern times involving leaders like Mahatma Gandhi and Saad Zaghloul. The establishment of diplomatic relations in 1947 paved the way for a friendship treaty in 1955 and formation of the Non-Aligned Movement (NAM) in 1961.
Despite a decrease in trade by 17% over the previous year 2022-23, India remains a significant trading partner for Egypt. Indian investments span across multiple projects worth USD 3.15 billion, demonstrating the extensive economic engagement that characterizes this relationship.
Defence cooperation has also been a crucial aspect, with the two Air Forces having collaborated on fighter aircraft development, joint exercises and training. Cultural ties have been promoted by institutions like the Maulana Azad Centre for Indian Culture (MACIC) in Cairo, established in 1992.
Opportunities and Challenges in India-Egypt Relations
India looks forward to leveraging opportunities such as combatting religious extremism, capitalizing on Egypt’s strategic location adjacent to the Suez Canal, investing in infrastructure development and tapping into Egypt’s demand for imports like refined petroleum, wheat, cars, corn and pharmaceuticals.
Despite the promising prospects, challenges such as Egypt’s economic crisis, high inflation rates, rising foreign debt, dwindling net foreign assets and increasing Chinese influence loom over the relationship.
Way Forward
India needs to carefully balance potential risks with opportunities in its relations with Egypt. Innovations such as the EXIM line of credit, barter, and rupee trading can potentially mitigate eco-political risks and leverage Egypt’s lucrative opportunities. However, India should avoid repeating past experiences of deferred project dues as in Iraq during the 1980s and 1990s.
India can explore trilateral funding arrangements for projects in Egypt with its partners in the Gulf, the G-20 or multilateral financial institutions. This will not only assure the viability of such projects but also prevent setting a precedent for other similarly placed friendly countries.
