Prime- Minister’s Egypt State Visit

Context:

Recently, the Prime Minister visited Egypt with a strong focus on enhancing defense and economic cooperation between the two countries.

Image Source: IDSA

Key Highlights of Visit:

• Deepening Cooperation in Various Areas: Both the leaders discussed ways to further deepen the partnership in trade, investment, defence, security, renewable energy.
• Strategic Partnership: The two sides signed an agreement to elevate the bilateral partnership to a “strategic partnership with key elements:
  •  Scientific and academic collaboration; cultural and people-to-people contacts.
•  Memorandum of Understanding (MoU): Three (MoU) in the fields of:
  • Agriculture
  • Archaeology and antiquities 
  • Competition law 
• Highest State Honor Accorded to Prime-Minister: The Government of Egypt bestowed the highest honour of the land — the Order of the Nile.
• Visit to Heliopolis Commonwealth War Grave Cemetery: The Prime Minister visited the Heliopolis Commonwealth War Grave Cemetery to pay homage to over 4,300 Indian soldiers who had perished in Egypt and Aden during World War I.
• Visit to the Al Hakim Mosque: PM Visited Al Hakim Mosque which was renovated with assistance from the Dawoodi Bohra community.

Background:

• India and Egypt, two of the world’s oldest civilizations, have enjoyed a history of close contact from ancient times as Ashoka’s edicts refer to his relations with Egypt under Ptolemy-II.
• In modern times an exceptionally close friendship between President Nasser and Prime Minister Nehru, leading to a Friendship Treaty  in 1955.

Various Facets of India-Egypt Relations:

• Political Relations:  Both countries were the founding members of the Non-Aligned Movement.
  • The year 2022 marked the 75th anniversary of diplomatic relations between India and Egypt.
• Economic Relations: The India-Egypt Bilateral Trade is based on the Most Favoured Nation clause.
• Defence: Egypt is interested in procuring defence equipment from India, which includes LCA Tejas, missiles like Akash, DRDO’s Smart Anti-Airfield Weapon, and radars.
  • Recently, the first-ever joint exercise between the special forces of the Indian Army and the Egyptian Army named “Exercise Cyclone-I” was held in January 2023.

Recent Initiatives to boost India- Egypt Ties:

• India invited the Egyptian president as Chief Guest on Republic Day Celebrations (26th January 2023)
• Egypt is a “guest country” at the upcoming G-20 summit in India.
• ‘India Unit ‘, a group of high-level ministers constituted by El-Sisi in March to enhance India-Egypt relations.

Why is India keen to develop its ties with Egypt?

• Geo-strategic Location: Egypt is located at a crucial geo-strategic location — 12 percent of global trade passes through the Suez Canal.
• Trading Partner: Egypt has been one of India’s important trading partners in the West Asia and Africa region.
• Gateway to Africa: Egypt is also perceived as a gateway to Africa due to its strong trading links and free trade agreements across the continent.
• Complementary Partnership: While India  seeks to consolidate its position in the Arab world with Egypt’s help, the latter wants India to expand its trade and investments in the country to help deal with its ongoing economic crisis.
• Quest for India’s Participation in the Arab World: India wants to draw huge amounts of capital from Gulf nations, curtail religious extremism by supporting moderate countries in the region while encouraging social reforms, and participate in the security politics of the area.
• Egypt is emerging as a Mediterranean power because of its centrality in gas geopolitics.

Challenges:

• Lack of Efficacy: The underperformance of bilateral ties is not due to a lack of bilateral institutional mechanisms, but their efficacy and sense of purpose. 
• China’s Closer Ties: Egypt is being seen as getting close to China. Chinese investments are very huge and outnumber India’s investments, which is a serious challenge from an Indian perspective.
• Economic Crisis: Egypt is in high economic instability. Egypt’s foreign debt is over $163 billion (43% of the GDP) and its net foreign assets are minus $24.1 billion.

Way Forward:

• Invest More: Need to invest more to reduce the influence of China, not only to strengthen our footholds but to protect Egypt from dept trap diplomacy of China too.
• Help Egypt to Come Out of Economic Crisis Situation: India may countenance manageable eco-political risks to partake Egypt’s lucrative opportunities through various innovations such as the EXIM line of credit, barter, and rupee trading. 
• Elevating the Partnership: India could hold an India-Egypt 2+2 Foreign and Defence Ministerial Meeting – putting the Egypt and India relationship at the same level as heavy-weight bilaterals like the United States, Japan, Australia and Russia.

News Source: The Hindu