The Egyptian-Indian Business Council has launched an investment initiative that aims to increase Indian investments in Egypt to $5 billion by 2027, Egypt's Minister of Investment and Foreign Trade Hassan El-Khatib said on Tuesday, according to the local media reports. This move shows the importance of Egypt as an Indian partner, not only geopolitically but also as a major trading partner in Africa and West Asia, experts told Sputnik India.
Egypt's significance has notably increased of late, highlighted further by its membership in BRICS, indicating a relationship that encompasses not only bilateral but also regional and multilateral dimensions, Rajiv Bhatia, a former ambassador, Distinguished Fellow at the Gateway House Indian Council on Global Relations, told Sputnik India.
India considers the West Asia and North Africa region to be highly "significant due to economic factors, energy resources, geopolitical dynamics, and the presence of the Indian diaspora," he added.
India and Egypt aim to increase their bilateral trade to $12 billion over the next five years, as discussed in a meeting between Prime Minister Narendra Modi and the Indian delegation of the Egyptian Cabinet, led by Prime Minister Mostafa Madbouly in Cairo in June 2023.
Beri undersored that amid the current Indo-Pacific geopolitical dynamics, India prioritises stable relationships with partners who share similar perspectives — Egypt has proven to be a crucial ally for India in Africa, with this partnership unaffected by evolving geopolitical trends.
"It is crucial to pursue a comprehensive economic agreement or a Free Trade Agreement (FTA) with Egypt, given its significance as a major trading partner for India in Africa and the broader West Asian region, in order to elevate India's economic partnership with them to a higher level," Dr Ruchita Beri, a senior fellow at the Vivekananda International Foundation, claimed in a conversation with Sputnik India.
India and Egypt's Collaboration in the Maritime Domain
Since 2014, India's foreign policy has shifted markedly towards prioritising stronger partnerships with Gulf countries and the Eurasian region, particularly in trade.
This has been reflected in discussions during Modi's recent visit aimed at enhancing ties through potential free trade agreements for deeper collaboration, Dr. Meena Singh Roy, a research fellow and head of the West Asia Centre at the Manohar Parrikar Institute for Defence Studies and Analyses, told Sputnik India.
Roy believes that now is the opportune moment for India to strengthen its economic and diplomatic ties with Egypt, focusing on expanding investments in the energy sector, intensifying counterterrorism efforts, and enhancing cultural exchanges, all of which have significant potential for further development.
She highlighted the importance of collaborating in the maritime domain to secure trade routes and sea lines of communication, which are mutually beneficial, noting India's undersea cables pass through Egypt and need security measures.
Therefore, areas such as digitization, digital connectivity, and maritime cooperation hold substantial importance, including potential collaborations on 'Make in India' initiatives between India and Egypt, she added.
Roy contended that India's new policy approach aims to engage not just its key partners in the Gulf but also those in North Africa, including countries like Morocco, Algeria, Tunisia, and Libya, fostering enhanced cooperation across the region.
There is potential for trilateral or multi-lateral security cooperation involving Gulf partners, Egypt, and India, focusing on issues like piracy and securing sea routes, alongside other strategic considerations, Roy proposed.
Meanwhile, the Egyptian Air Force is exploring the acquisition of Chinese J-10C and J-31 fighter jets as part of its efforts to modernise its fleet, according to media.
Roy highlighted that if Egypt finds a "financially viable option with China for acquiring J-10C and J-31 fighter jets, then it is understandable".
"Competition is inherent in such decisions, and diversification in procurement choices is a natural course of action," she noted.
Meanwhile, India is progressing rapidly in terms of domestic production of modern arms and weapons, Bhatia highlighted. He emphasized that Egypt, with its longstanding warm and cordial relationship with India, should ideally be a partner for increased defence cooperation.
India's interest in strengthening its defence partnership with Egypt is underscored by Egypt's status as a prominent defence power in Africa, Beri added.
“Egypt is seeking a reliable defence partner, and views India as a strategic and dependable ally in this regard,” Beri concluded.
Earlier, Indian Foreign Minister S. Jaishankar attended an event marking Egypt's national day, emphasizing the increasing economic cooperation between the two countries. More than 50 Indian companies are investing in sectors like pharmaceuticals, electronics, and green energy, with expectations of further partnerships in the IT industry, he mentioned.