Egypt-India Trade Exchange Hits $6.6 Billion

The Egyptian-Indian trade exchange has reached $6.6 billion, marking a significant increase from $4.4 billion in the previous year. This growth is a positive indicator of the strengthening economic relations between the two countries. Ahmed El-Wakil, head of the Egyptian Federation of Chambers of Commerce, highlighted this development during the Egyptian-Indian Business Forum, held in the New Capital. The forum was attended by high-ranking officials, including Dr. Mohamed Farid, Minister of Investment and Foreign Trade, and Piyush Goyal, Indian Minister of Commerce and Industry.

El-Wakil emphasized that Egypt's strategic location and free trade agreements make it an ideal hub for manufacturing, exporting, and investing. The country offers access to markets with over 4.5 billion consumers in Africa, the Arab world, and the European Union. Additionally, Egypt's local market comprises over 120 million consumers. These advantages have attracted Indian investments, with over 55 major Indian projects worth $4.5 billion currently operating in Egypt.

The existing Indian investments in Egypt serve as a successful model for leveraging the country's benefits. Indian companies utilize Egypt's manufacturing capabilities and export to external markets, taking advantage of free trade agreements and modern transportation networks. El-Wakil encouraged the development of economic relations from bilateral trade and investment cooperation to trilateral partnerships targeting regional and international markets.

El-Wakil proposed establishing joint manufacturing projects using Indian components and technology, as well as Egypt's industrial capacities and export networks. He also suggested forming alliances between Egyptian and Indian companies to implement infrastructure projects in Africa and participate in reconstruction projects in neighboring countries. These partnerships can capitalize on Egyptian companies' experience in executing large projects and Indian technological and industrial capabilities.

The history of economic relations between Egypt and India dates back to 1998, when the G15 summit was held in Cairo. The event marked a significant milestone in establishing many Indian investments and projects currently operating in Egypt. El-Wakil highlighted that Egypt provides an attractive environment for foreign investments, supported by political and economic stability, infrastructure development, and economic and legislative reforms.

Egypt offers various investment opportunities, including the development of the Suez Canal axis, reclamation of 3.5 million feddans, and construction of 22 new cities. These opportunities are supported by over $22 billion in financing programs and trade and investment guarantees from international financing institutions and development banks. El-Wakil emphasized the need to transition from discussing economic opportunities to converting them into actual projects and partnerships.

The Egyptian Federation of Chambers of Commerce and the Federation of Indian Chambers of Commerce and Industry (FICCI) have signed a cooperation agreement to enhance economic ties between the two countries. El-Wakil called on the Indian business community to expand its investments and economic partnerships in Egypt, highlighting the country's potential as a hub for investment, manufacturing, and exporting to regional and global markets.

Key points

• The trade exchange between Egypt and India has reached $6.6 billion, with over 55 Indian projects worth $4.5 billion operating in Egypt.