Opportunities for India-Egypt relations
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Salma Hossein
- . March 1, 2023
- . Update: March 2, 2023 11:32 am
India has extended an invitation to Egypt to be honored as the guest of honor at its Republic Day celebrations on January 26, 2023. The two nations have shared close relations for seven decades, and this significant decision serves as a testament to India’s revised strategy toward the Arab world. This relationship can be traced back to the Cold War when India offered support for Egypt’s Suez Canal nationalization and they jointly established the Non-Aligned Movement. Strengthened tenfold in recent years, this already strong tie is sure to grow even further.
India and Egypt announced on Jan. 22, 2023, their intention to take their relationship up a notch with the establishment of a strategic partnership. This partnership will span four main areas: political and security cooperation, economic engagement, scientific and academic collaboration, and cultural and people-to-people contacts. Five Memorandums of Understanding were signed to mark this occasion, covering culture, IT, cyber security, youth matters, and broadcasting. Prime Minister Modi remarked that the potential for defense and security cooperation is “unlimited” with Egypt being particularly beneficial for India due to its international influence in providing greater access to African nations.
India and Egypt’s strategic partnership holds far-reaching implications for both countries and their geopolitical initiatives. They have agreed to build up cooperation between defense industries, exchange counter-terrorism intelligence and provide information frequently on the same topic. Egypt’s location near Saudi Arabia offers India a tactical advantage. Trade plays an essential role in this association since Indian enterprises have a chance to access Egyptian markets which are full of investment opportunities and incentives. Several Indian businesses have already made their mark on the Egyptian economy by engaging in the pharmaceuticals, IT, textiles, and garments industries. Altogether, India-Egypt Strategic Partnership is positioning both countries for a privileged bilateral relationship.
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The deep ties between India and Egypt provide several opportunities for mutual benefit. Both nations can benefit from bilateral and multilateral collaborations in science, technology, agriculture, water technology, and other fields. Moreover, the Indian diaspora in Egypt plays an integral role in strengthening the relationship between India and Egypt, so tourism promotion and cultural exchange programs are worth considering.
India and Egypt have enjoyed a close relationship, yet there are obstacles to the partnership. Most notably, Egypt is experiencing a major economic crisis as food prices rise, unemployment rises and banks struggle. This has made stakeholders such as the GCC question their joining in the military alliance. Moreover, the Ukraine crisis has caused shortages of commodities like eggs and oil, adding yet another obstacle to overcome. To ensure a successful partnership between India and Egypt, it is essential for Egyptian internal reform to secure stability.
Analysts are aware that Chinese influence in Egypt is a major roadblock to Indian-Egyptian relations. President Sisi’s presence at India’s Republic Day celebration could be interpreted as an endorsement of China’s increasing financial backing of infrastructure projects such as the Suez Canal. The position of the canal, on the Indian Ocean, makes it an influential factor in regional geo-politics and necessitates that India takes steps to reinforce its maritime security and energy ties with Egypt.
The strengthening of defense ties between India and Egypt will benefit both sides, offering Egypt improved defense capabilities, and affording India a market for its defense production. In addition, information technology and agriculture are two other sectors in which collaboration has the potential to drive economic growth. As President Sisi plans his visit, it is imperative that any sticking points preventing closer ties be addressed and the shared areas of interest explored. Such a move could herald a new chapter in India-Egypt relations.
