Egypt Targets $12 Billion Trade with India in Strategic Partnership

Egypt aims to significantly enhance its economic collaboration with India, setting an ambitious target to nearly double bilateral trade to $12 billion in the coming years. Currently, trade between the two nations is approximately $5 billion, a figure that Egyptian officials believe does not reflect the full potential of this partnership.

At a recent event at the Foreign Correspondents’ Club of South Asia, Egypt’s Ambassador to India, Kamel Zayed Galal, emphasized the numerous opportunities for joint growth, particularly in areas such as energy, manufacturing, agriculture, and connectivity. He noted that Indian investments in Egypt, currently around $3.7 billion, are projected to surpass $10 billion in the future.

Focus on Energy and Manufacturing

The Ambassador underscored that energy cooperation, especially in renewable sectors like green hydrogen, is becoming increasingly important. He highlighted Egypt’s abundant solar and wind resources and its growing infrastructure as factors that could position the country as a key hub for green energy production and exports.

Galal pointed out that Egypt’s strategic location, with access to major global shipping routes, bolsters its role in international trade. He identified fertilisers, agriculture, and industrial manufacturing as sectors ripe for development, suggesting that enhanced supply chain connections could swiftly boost trade volumes.

Egypt’s industrial zones and its free trade agreements with both African and European countries offer significant advantages for Indian businesses. According to Galal, Egypt should be viewed not merely as a market for products, but as a strategic base for production and exports to broader regions.

Strengthening Bilateral Relations

Egypt’s ports along the Red Sea and Mediterranean Sea, in addition to the Suez Canal—responsible for about 12 percent of global trade—further establish the country as a vital trade gateway. In 2023, following discussions between Indian Prime Minister Narendra Modi and Egyptian President Abdel Fattah el-Sisi, the two nations elevated their relationship to a Strategic Partnership.

Galal remarked that the focus has shifted from merely establishing ties to achieving tangible economic outcomes. He elaborated on Egypt’s foreign policy, which emphasizes strategic independence, international cooperation, and respect for national sovereignty. This approach aligns closely with India’s perspectives, particularly regarding the need for reforms in global institutions like the United Nations.

As both countries look to solidify their partnership, the potential for increased trade and investment appears promising. With clear goals set and opportunities identified, Egypt and India are poised to embark on a new chapter of economic collaboration that could yield significant benefits for both nations.