India and Egypt have agreed to boost trade between their countries during a visit by the Egyptian President, Abdel Fattah El-Sissi.
The Egyptian President’s visit to India underscores Prime Minister Narendra Modi’s efforts to reinforce peaceful ties with other emerging economies.
Addressing a press conference after a meeting in the capital, New Delhi, Modi disclosed that he and President Abdel Fattah El-Sissi have decided on measures to increase bilateral trade within five years to $12 billion.
Bilateral trade totaled $7.3 billion for 2021-22. The two countries also signed agreements on expanding cooperation in cyber security, information technology, culture and broadcasting.
Modi and El-Sissi expressed concern over disruptions to food supplies and other critical resources due to the nearly one-year war in Ukraine.
Egypt’s economy has been adversely affected by the COVID-19 pandemic and Russia’s war in Ukraine, which pushed prices for oil and other commodities to record highs.
Being one of the world’s biggest importers of wheat, it obtained help from the World Bank last year to finance its grain purchases as supplies from Ukraine were disrupted.
Imports from India, which made an exception for countries like Egypt facing severe shortfalls even as it banned most wheat exports, helped to bridge the gap.
India is among the top five importers of Egyptian products, including crude oil and liquefied natural gas, salt, cotton, inorganic chemicals and oilseeds. Major Indian exports to Egypt include cotton yarn, coffee, herbs, tobacco, lentils, vehicle parts, ships, boats and electrical machinery.
El-Sissi urged Indian businesses to invest more in the Suez Canal Economic Zone. According to India’s External Affairs Ministry, more than 50 Indian companies have invested around $3.15 billion in various parts of the Egyptian economy, including chemicals, energy, textiles, garments, agri-business and retailing.
Prime Minister Narendra Modi iterated that they have decided to elevate bilateral relations with Egypt to a strategic partnership.
“We’ve decided that under India-Egypt Strategic Partnership, we will develop a long-term framework for greater cooperation in the fields of politics, security, economics, and science.”
Prime Minister Narendra Modi
India is the host country for the Group of 20 major economies this year and Modi has invited El-Sissi to attend as one of its special guests.
El-Sissi will be the chief guest at India’s Republic Day parade on Thursday, January 26, 2023, marking the anniversary of the adoption of the country’s constitution on January 26, 1950. India won independence from British colonial rule in 1947.
India And Egypt Express Concerns Over Terrorism
India and Egypt expressed concerns over terrorism and both countries agreed that strong actions must be taken to control cross-border terrorism.
Modi sought Egypt’s cooperation in fighting extremism and cyber threats.
“We’ll also cooperate to check misuse of cyberspace that helps in spreading extremism and radicalization. We also held discussions on the supply chain that was disrupted due to COVID-19 and the Ukraine crisis.”
Prime Minister of India, Narendra Modi
President El-Sisi noted, “I have invited Prime Minister Modi to Cairo to take our relationship forward.”
The last time the Egyptian President visited India was in October 2015 to attend the third India-Africa Forum Summit. Later, he came to India in September 2016 on a state visit.
El-Sisi is the first Egyptian President to be invited as the chief guest for the Indian Republic Day celebrations. A military contingent from the Egyptian Army will also participate in the Republic Day parade on Thursday.
India and Egypt are celebrating 75 years of establishment of diplomatic relations this year. Egypt has also been invited as a “Guest Country” during India’s presidency of G20 in 2022-23.
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