India, Egypt declare ‘strategic partnership’
Jan. 27, 2023

Why in news?

  • President of the Arab Republic of Egypt, Abdel Fattah El-Sisi, is on a State Visit to India from 24-27 January 2023.
  • President Sisi, who is on his second State Visit to India, was also the Chief Guest at India’s Republic Day 2023.
  • During this visit, President Sisi and PM Modi held bilateral talks.

What’s in today’s article?

  • India-Egypt Bilateral Relations
  • News Summary

India-Egypt Bilateral Relations

  • India and Egypt, two of the world’s oldest civilizations, have enjoyed a history of close contact from ancient times.
    • Ashoka’s edicts refer to his relations with Egypt under Ptolemy-II.
  • Close friendship between President Nasser and PM Nehru led to a Friendship Treaty between the two countries in 1955.

Political Relations

  • Both countries have cooperated closely in multilateral fora and were the founding members of Non-Aligned Movement.
  • The year 2022 is of particular significance since it marks the 75th anniversary of diplomatic relation between India and Egypt.
  • Egypt has been invited as a Guest Country during India’s Presidency of G-20.

Economic Relations

  • Bilateral trade has expanded rapidly in 2021-22, amounting to 7.26 billion registering a 75% increase compared to FY 2020-21.
    • India’s exports to Egypt during this period amounted to US$ 3.74 billion and Egypt’s exports to India reached US$ 3.52 billion.
    • In FY 2021-22, the top Indian imports from Egypt were Mineral Oil/Petroleum, Fertilizers, Inorganic Chemicals and Cotton.
    • Main items of export to Egypt from India were Buffalo Meat, Iron & Steel, Engineering Products, Light Vehicles and Cotton Yarn.
  • India was the 6th most important trading partner for Egypt in FY2021-22.
  • Around 50 Indian companies have invested in various sectors in Egypt with a combined investment exceeding US$ 3.15 billion.
    • Egyptian investments in India are to the tune of US$ 37 million.
  • Wheat export from India
    • Russia-Ukraine conflict has threatened Egypt with a shortage for wheat, 80% of which is imported from Russia and Ukraine.
    • In April 2022, Egypt announced inclusion of India in the list of accredited countries which can supply wheat to Egypt, thus ending a long pending Non-Tariff Barrier.
    • India — which had put a ban on export of wheat — allowed export of 61,500 tonnes to Egypt.

Development cooperation

  • The grants-in-aid projects include:
    • Pan Africa Tele-medicine and Tele-education project in Alexandria University, Solar electrification project in Agaween village and Vocational Training Centre for textile technology in Shoubra, Cairo, which have been completed.
  • Technical cooperation and assistance
    • Since 2000, over 1300 Egyptian officials have benefited from ITEC (Indian Technical and Economic Cooperation) and other programs like ICCR (Indian Council for Cultural Relations) and IAFS (India Africa Forum Summit) scholarships.

Defence Relations

  • Exercises
    • The first ever IAF-EAF Joint Tactical Air Exercise, Dessert Warrior, was held in Egypt in October 2021.
    • For the first time, Indian Air Force (IAF) participated in Tactical Leadership Programme of Egyptian Air Force (EAF) Weapons School in 2022.
    • Cyclone Exercise between two countries held in Jan 2023 in India.
  • Transits:
    • Indian Navy Ships undertake port calls at Egyptian ports.
    • Egypt regularly provides transit facilities to IAF and Indian Navy aircraft ferrying to/ from Russia, Europe and the USA.

Cultural relation

  • The Maulana Azad Centre for Indian Culture (MACIC) has been promoting cultural cooperation between the two countries.
  • The iconic Cairo Tower (which is the tallest tower in North Africa) was illuminated with Indian National Flag in the evening of 15th August 2021.

Indian Community

  • At present, the Indian community in Egypt numbers at around 3200, most of whom are concentrated in Cairo.
  • There are also a small number of families in Alexandria, Port Said and Ismailia.
  • About 400 Indian students are studying in Egypt, mainly in Al Azhar University.

News Summary: Outcomes of the State visit of President of Egypt to India

  • Relationship upgraded to Strategic Partnership
    • Both sides decided to elevate the relationship to Strategic Partnership covering political, security, defence, energy and economic areas.
  • 75 years of establishment of India-Egypt relationship
    • Both sides exchanged the Commemorative Postal Stamps to mark 75 years of establishment of India-Egypt relationship.
  • MoUs signed in areas of Cyber Security, IT, Culture, Cooperation in Youth Matters
  • The issue of terrorism
    • Both countries agreed that concerted action is necessary to end cross-border terrorism. And for this, they decided that together both the countries will continue to try to alert the international community.
    • They condemned the use of terrorism as a foreign policy tool and called for zero tolerance towards terrorism.
  • Bilateral trade
    • Both sides have decided to take the bilateral trade to 12 billion dollars in the next five years.
  • Proposal to create permanent channels
    • Egyptian President requested PM Modi to create permanent channels to enhance digital connections between small and medium scale industries.
    • This will help in improving life of common people.