#130: PM Modi in Egypt
GS2: Indian Relations | Notes
Considered perhaps the oldest civilizational link, India-Egypt share historic links. Egypt is the most populous Arab country.
In 2750 BCE, Pharaoh Sahure sent ships to “Land of Punt” (Peninsular India)
In mid of 2nd Millennium BCE, Egyptian mummies were wrapped in muslin dyed in Indigo, both from India
Connecting factors in modern history & relationship
Decolonization and NAM
Egyptians’ Bollywood frenzy and Egyptian music in Indian scores
Trade: $6061mn in 2022-23 (1/3rd petroleum)
India is Egypt’s 6th biggest trade partner
Egypt is India’s 38th trade partner
Diaspora: 5k Indians in Egypt, 1/5th are students
President Abdel Fattah El-Sisi was chief guest at Republic Day in 2023
Partnership upgraded to 'strategic partnership'
Friendship Treaty 1955
India's Support to Egypt including during Suez Crisis 1956
Non Aligned Movement 1961
G77 and South-south cooperation saw both involved
Similar stance in Ukraine crisis
Order of the Nile, highest state honour, conferred on PM Modi
It is given to world leaders who offer Egypt or humanity invaluable services
G20 special invite to Egypt
Egypt joined New Development Bank (BRICS) in March; in line to join BRICS
MoU for CoE in IT by India at Al Azhar University, Egypt
Some facts about Egypt
Population: 105 million
Economy: $378 billion
Foreign debt: $163 billion (43% of GDP)
Net foreign assets: Minus $24.1 billion
Largest imports: Refined petrol, wheat, cars, corn, pharma
World’s largest importer of wheat
Largest population in the region
Geopolitical location wrt Suez
Largest standing army in the region
Extensive diplomatic footprint
Hosts HQ of League of Arab States
2nd largest African Economy, first is Nigeria
Key Pillars of the relationship
Relationship's 4 Key pillars:
a) Politics, Defence and Security
b) Economic Engagement
c) Academic & Scientific Exchange
d) Cultural and P2P contacts
Opportunities
Going forward, the two nations shall leverage the opportunities while avoiding the pitfalls
Egypt is politically stable with socio-economic conditions similar to India
All of Egypt’s imports have opportunity for India
Egyptian govt has an agenda of 49 mega projects
2015-2019, Egypt was third largest arms importer
Exports in defense, agriculture etc.
Al-Hakim Mosque in old Cairo, A religious place for Indian Bohra community (soft power)
Investments in Suez Canal Economic Zone (SCZONE)
easy access to markets in Europe, Africa, Gulf
Egypt as manufacturing base to feed local market and export to the mentioned places above
Made in India for the World program opportunity
Challenges
Egyptian economy in crisis
Annual inflation above 30%
Currency lost nearly half of its value since Feb 2022
Static economy, pandemic, global slowdown, Ukraine
Tourism has now dropped while imports are still costly
Foreign exchange scarcity, $3bn IMF bailout comes with heavy conditions
Pitfalls (to avoid)
Balance exposure to Egypt
Take creative approaches like EXIM line of credit, barter and rupee trade
Avoid repetition of Iraq like situation deferring hard-earned construction projects
Avoid setting up any precedent that can be cited by some other country putting India in the back seat
Conclusion
By forging a Cairo-Delhi axis, India can build on Egypt’s expanding presence in Africa, and elevate its position on the global stage.
As India embarks on journey of dealing with Egypt, it shall be prepared for a long haul for Egypt is ancient and modern, authoritarian and argumentative, nimble and bureaucratic, friendly and opinionated - all at the same time
Hi, at @CSEWhy I invite you to support me! You can do that in three simple ways:
Become a blog contributor and have your write ups featured on my blog. Write me an email if you’d want to be a contributor at whycse@gmail.com
Share the link to this post on your WhatsApp story
-OR- Contribute a small amount (Pay What You Want) by clicking here (I send a valuable gift to everyone who makes a contribution)
To find links to my Twitter, Telegram, YouTube and Podcast Visit my Website
