The recent visit by the Indian Prime Minister Narendra Modi to Cairo has marked the history as he is the first Indian Prime Ministers to embark on an official visit to enhance the bilateral ties between the two nations since 1997[1]. This meeting is considered to be highly successful in strengthening the ties which was pushed back in India’s foreign policy agenda for twenty-six years. This meeting came about after the Egyptian President Abdel Fattah El Sisi was invited as a chief guest to the 2023 Republic Day Parade in Delhi, in return the latter invited PM Modi to visit their State[2]. During his stay in Cairo, Prime Minister’s schedule included an interaction session with the Indian diaspora in Egypt, meet important personalities, hold bilateral talks with the President of Egypt and visit the 11-century Al Hakim Mosque[3]. This scheduled meeting between the two leaders meet for the second time highlights the growing cooperation between the two nations. While Egypt wants India to expand its investment, commerce, and trade to deal with its ongoing economic crisis the later wants to consolidate its stand and position in the Arab world. This paper attempts to elucidate the state visit and what means to both India and Egypt.

High-level visits and diplomatic contacts have helped to boost India-Egypt defense and security cooperation. These visits provide an opportunity to discuss bilateral defense ties, exchange perspectives on regional security problems, and explore future collaboration opportunities. Such visits deepen mutual understanding and forge deeper ties between both countriestowards cooperation and co-existence. Therefore, in his recent visit to Egypt, Mr. Modi was bestowed the country's highest title, the Order of the Nile by theEgypt's government and his first official visit to Egypt called as "historic"[4].There were four agreements signed during the honorable Prime Minister's visit- the first, most important, and milestone development in the trajectory of bilateral relations was the signing of strategic partnership between India and Egypt. The other three areas of cooperation was in the field of agriculture; conservation and protection of monuments and archaeological sites and lastly the signing of competition law was also done. This meeting is significant in adding vigor to India-Egypt relations and it serves as a mode to counter balance China’s influence in not just the Arab world but also in Africa.

A Historical Perspective

India and Egypt are two ancient civilizations with rich historical and cultural ties, have enjoyed diplomatic relations for over sixty years[5]. This shared connection between the two countries dates back to the ancient trade routes and cultural exchange. In modern times, India’s support for Egypt’s independence from colonial rule during the 1952 Revolution laid the first foundation stone for diplomatic ties. In 1955, the first diplomatic relations was officially established and both countries opened their embassies in each other’s capitals[6].

In terms of political relations, both nations have maintained friendly and cordial relations. High level visits between the two nations have contributed to strengthening the ties. The visits of Egyptian President Gamal Abdel Nasser to India in 1960 and Indian President Dr. Sarvepalli Radhakrishnan to Egypt in 1964 were key milestones in solidifying bilateral relations. There have also been regular visits between prime ministers, presidents, and ministers, boosting communication and collaboration on a variety of regional and global concerns, however these were halted in the 20^th century due to the different governments in both countries and global affairs then was completely different. The first two decades of this century was very quiet in terms of bilateral context between the two nations. The Egyptian ambassador, Wael Mohamed Awad Hamed stated in his interview that except for the two visits by the Egyptian President to India in 2015 there were any interaction between the two nations, although there were plausible plans for the Prime Minister of India to visit Egypt, they were all postponed due to Covid-19 and the Russia Ukraine war that kept the whole world busy[7].Therefore, this visit by PM Modi is considered highly significant in the relations between India-Egypt.

Trade and Economics

Trade and economic cooperation have also played a major role in India-Egypt relations. Both countries have worked to increase bilateral trade and investment. Over the years, the volume of trade between India and Egypt has steadily increased. Textiles, medicines, chemicals, engineering items, and information technology are key areas of collaboration. The volume of trade between India and Egypt has consistently expanded during the last decade. According tothe Observatory of Economic Complexity, total bilateral commerce between the two nations was around USD 3.3 billion in fiscal year 2020-2021[8]. This represents a huge increase over prior years, emphasizing the strengthening economic linkages. In terms of trade balance, India has historically had a surplus. During the fiscal year 2020-2021, India's exports to Egypt were valued at around USD 3.25 billion, while Egypt's imports were valued at approximately USD 426 million. This trade surplus for India reflects the Egyptian market's strong demand for Indian goods and services.

Several significant commodities contribute to India-Egypt bilateral trade. Pharmaceuticals, automobile parts and components, textiles and apparel, machinery and equipment, chemicals, electrical equipment, and petroleum products are among India's key exports to Egypt. These industries have expanded as a result of Egyptian demand for Indian items.Egypt, on the other hand, principally exports to India crude oil, petroleum products, chemicals, rock phosphate, and fertilizers. Egypt's oil exports are critical in meeting India's energy requirements[9]. Several important commodities contribute to bilateral commerce between India and Egypt. Among India's major exports to Egypt are pharmaceuticals, vehicle parts and components, textiles and apparel, machinery and equipment, chemicals, electrical equipment, and petroleum products. These industries have grown in response to Egyptian demand for Indian goods. Egypt, on the other hand, mainly exports crude oil, petroleum products, chemicals, rock phosphate, and fertilizers to India. Egypt's oil exports are essential in addressing India's energy needs.

India and Egypt have signed several bilateral agreements to promote and ease trade and investment. These treaties set the stage for economic cooperation, investment protection, and the avoidance of double taxation. The India-Egypt Bilateral Investment Promotion and Protection Agreement (BIPPA), which was signed in 1997, intends to encourage and protect both nations' investments. It ensures fair and equitable treatment, non-discrimination, and investment repatriation[10]. Furthermore, the 1969 Double taxes Avoidance Agreement (DTAA) tries to eliminate double taxes on income and capital gains[11]. This agreement contributes to the development of a favorable business climate and stimulates cross-border investment. Unfortunately,such bilateral talks were slowed down in 1997 due to the silence in the relations however this recent visit by PM Modi tackled this issue.

Defense and Security Relations.

Defense and security cooperation has been an essential aspect of India and Egypt's bilateral ties. Both countries recognize the importance of regional stability and have worked together on a number of defense and security measures. To improve their defense capabilities, India and Egypt have engaged in military exchanges, joint exercises, and training programmes. These projects aim to increase interoperability and mutual learning among both countries' military services. The Indian Army and the Egyptian Armed Forces, for example, have participated in joint exercises such as "EXERCISE NILE STEED" and "EXERCISE HAND-IN-HAND". The exchange of best practices, strategies, and experiences in areas such as counter-terrorism operations, urban warfare, and disaster management is part of these exercises.

India and Egypt have also partnered in the procurement of defense equipment, which has contributed to technological collaboration and the modernization of their respective armed forces. Egypt has relied on India as a reliable provider of defense equipment. For example, in 2016, the Indian business Bharat Electronics Limited (BEL) signed a contract with Egypt to offer a coastline monitoring system, illustrating the two countries' technological collaboration. Terrorism and extremism pose common issues for India and Egypt. Recognizing the need of dealing with these dangers, they have joined forces in counter-terrorism activities and intelligence sharing. Information cooperation among intelligence services has been critical in avoiding terrorist attacks and safeguarding regional security. These cooperation aid in the exchange of essential information, the analysis of new risks, and the coordination of counter-terrorism actions. This point of terrorism was also discussed in the meeting between PM Modi and President Sisi, where India and Egypt have discussed ways to boost cooperation in fighting against terrorism.

The Recent visit solving the problems and filling the gaps in the relations.

This second interaction between the Indian Prime Minister and Egypt’s president highlights the growing interaction and cooperation between the two countries. What was once put on a back burner in the 1970, as C Raja Mohan states, India’s foreign policy at that time was giving in to the anti-Western sentiments and was showing empathy for radical Arab States however Egypt was least of its concerns[12]. The Modi term, on the hand, has completely changed the game. Since 2014, India pursued to engage with West Asian countries. The reasons for according to Raja Mohan, for doing so is clear: Delhi wants to extract as much capital as possible from the Arab nations, reduce religious extremism in the region by aiding moderate countries while pressing for social reforms, and participate in regional security politics[13].

Two eminent countries from the Global South, Egypt and India, exhibit a striking similarity in their worries about the problems afflicting their shared region. Egypt has been given the honor of being invited as a guest nation during India's prestigious G20 presidency with other prestigious nations in acknowledgement of its greatness. These two countries are unified inside the G20 by a shared concern, as seen by their agreement on a wide range of crucial topics. The necessity of reducing global warming, ensuring energy security, ensuring food security, and pursuing sustainable development are paramount among these issues. Understanding the urgency that these issues entail, Egypt and India have both unambiguously expressed their unity in working together on G20 issues[14].

Therefore, Egypt has become a key player to achieve these targets for India. The nation has demonstrated a commendable degree of resilience and stability throughout the years, forging robust alliances with the United Arab Emirates and Saudi Arabia, both of whom have made substantial financial commitments in Egypt. Furthermore, Egypt's strategic positioning, as the conduit through which a noteworthy 12% of global maritime traffic traverses the vital Suez Canal, further amplifies its significance[15]. Consequently, the bilateral relations between New Delhi and Cairo have once again assumed a position of paramount importance and attention.In the realm of economic resurgence, Cairo is turning its gaze towards India, seeking assistance in the arduous task of reconstructing its beleaguered financial landscape. The confluence of the global COVID-19 pandemic and the ramifications stemming from the Russia-Ukraine conflict has further exacerbated Egypt's already ailing economic conditions.

The visit brought about a transformation between the two country’s ties, what was just a bilateral relation is now a “Strategic Partnership”[xvi]. There were four MoUsand agreements signed. Apart from this Mr. Modi also held wide range of talks, discussions and meetings with an aim to enhance defence and people-to-people ties between the two countries, thereforethis tackles the challenge of  less interaction with the nation. The strategic partnership will broadly have four elements: political, defence, and security; economic engagement; scientific and academic collaboration and cultural and people-to-people contacts[xvii]. Foreign Secretary Vinay Kwatra stated in his interview after the bilateral talks that the two leaders gave particular interest in enhancing political and security cooperation, defence cooperation, trade and investment ties, academic and scientific collaboration[xviii].

The current bilateral commerce volume between these countries of US$ 6.95 billion[xix] is a mere fraction of the enormous potential that is within their reach, therefore there is ample room for expansion. Given the quick growth of their respective economies, Egypt and India are well-positioned to continue on a path of burgeoning trade. The investigation of novel areas of collaboration, notably in those relating to renewable energy, food security, and joint ventures in the healthcare industry, will facilitate this trajectory. By the year 2028, it is the goal of the group to increase the value of bilateral trade to an impressive $12 billion USD.

The Suez Canal, a recognisable commercial route, is the very cornerstone of Egypt's economic success. India has a strong desire to strengthen its business and investment ties with Egypt in order to take advantage of the enormous potential that exists within the Suez Canal Economic Zone (SCZONE). This goal was emphasised during President Sisi's visit to India in January 2023, where this crucial topic received the attention, it deserved. India plans to use the SCZONE as a true bastion from which to expand its reach to the developing markets of Africa and Europe to further its strategic goals. The managers of the SCZONE have stated their unwavering willingness to provide India with a “a dedicated cluster in the industrial and logistics hub”illuminating the collaborative spirit[xx]. The facilitation of increased investments from India into Egypt as a result of this collaborative effort will promote an environment of mutual growth and development. Notably, India will also profit from expanded access to important markets, strengthening its standing on the international economic scene.

The areas of security and defence have become a focus point for India-Egypt bilateral cooperation under the smart leadership of Modi and Sisi. In order to strengthen the foundations of shared protection and resilience, India is ardently working to strengthen its security and defence collaboration with Egypt. There has been a noticeable increase in military-to-military communication between the two countries recently, indicating their determination to developing strong defence ties. Indian Navy ships have made regular port calls and visits to Egypt, which has fostered friendly relations and mutual trust. In particular, both countries' naval forces have engaged in cooperative exercises, shared training sessions, and reciprocal port visits, fostering a harmonious synthesis of strategic prowess[xxi]. India and Egypt jointly held their first air exercise, appropriately named "Desert Warrior," to symbolise the aerial synergy and camaraderie shared between their air forces[xxii]. This served as evidence of the two countries' ever-deepening relationship. In July 2022, the Indian Air Force participated in the acclaimed Tactical Leadership Programme of the Egyptian Air Force Weapons School, marking a significant turning point in the development of a culture of cooperation between the two countries.

Therefore, the current visit by PM Modi, is considered a game changer where both countries are gaining significant benefits from the partnership. The Egyptian ambassador to India mentioned to Aljazeera, that the visit is reinforcing both Egypt’s and India’s position on the international front[xxiii]. Egypt is offering India three very important and promising opportunities, to spread to Europe, Middle East and the whole of Africa by using Egypt as a “springboard”[xxiv]. In return, India will possibly have its own industrial zone in Egypt to increase the trad and investment in the region, therefore with the launch of direct projects between Delhi and Cairo will solidify the existing ties and take the partnership to new summits.

Conclusion

India attaches a great deal of weight to its relationship with Egypt because it sees Egypt as a significant and powerful political and military force within its larger regional context. Egypt enjoys a significant advantage thanks to its geopolitical involvement in Arab issues as well as its enviable location between the Mediterranean Sea, the Suez Canal, and the Red Sea. An indication of the growing confidence that permeates their alliance is the daring goal to engage in joint defence manufacture and co-production projects that are embedded within the developing political entanglements between these countries. However, it is wise to recognise that the road ahead is paved with severe obstacles. This project requires a significant financial commitment, the smooth exchange of cutting-edge technology, and a powerful display of political resolve, all stitched together with a strong feeling of mutual trust. The tremendous potential roadblocks that stand in their way won't stop them from moving forward with this cooperative project because they both share the goal of improving their defence capabilities.

The key focuses of Modi's diplomatic visit covered the areas of economy, defence, and security, shining a bright light on these crucial fields within the magnificent tapestry of his journey to Cairo. In fact, the pillars of modern India-Egypt relations stand firm, strengthened by a dual goal: to strengthen the ties of economic interdependence and the citadels of defence and security cooperation, with an unwavering emphasis on combating the ominous spectre of terrorism. President Sisi's august visit to India in January and the subsequent formalisation of a strategic partnership agreement during Prime Minister Modi's trip are two historic decision to elevate bilateral ties to the highest echelons of a strategic level, which unmistakably demonstrate.

 Notes

[1] Prakash, A. (2023) PM Modi says two-day state visit to Egypt a ‘historic one’, Hindustan Times. Available at: https://www.hindustantimes.com/india-news/pm-narendra-modi-egypt-visit-historic-one-abdel-fattah-el-sisi-101687701347212.html

[2]Ibid 1

[3] Chauhan, A. (2023a) Modi’s visit to Egypt: A look back at the relationship between Delhi and Cairo, and where it stands today, The Indian Express. Available at: https://indianexpress.com/article/explained/explained-global/modis-egypt-relationship-delhi-cairo-8684235/

[4]Bhattacherjee, K. (2023) PM Modi, president Abdel Fattah el-Sisi sign strategic partnership pact between India and Egypt, The Hindu. Available at: https://www.thehindu.com/news/national/pm-modi-president-abdel-fattah-el-sisi-sign-strategic-partnership-pact-between-india-and-egypt/article67009170.ece

[5]Embassy of India Cairo, Egypt (no date) Embassy of India, Cairo, Egypt?: India - Egypt Relations. Available at: https://www.eoicairo.gov.in/page/india-egypt/#:~:text=India%20and%20Egypt%20share%20close,made%20on%2018%20August%201947.

[6]India-egypt relations (2014) Ministry of External Affairs. Available at: https://www.mea.gov.in/Portal/ForeignRelation/Egypt_January_2014.pdf (Accessed: 19 July 2023).

[7]Laskar, R.H. (2023) PM Modi’s visit will be game changer for bilateral ties: Egypt ambassador, Hindustan Times. Available at: https://www.hindustantimes.com/india-news/pm-modi-s-visit-will-be-game-changer-for-bilateral-ties-egypt-ambassador-101687522445119.html

[8]India (IND) and Egypt (EGY) trade (no date) OEC. Available at: https://oec.world/en/profile/bilateral-country/ind/partner/egy#:~:text=Yarn%20(%24191M).,During%20the%20last%2026%20years%20the%20exports%20of%20India%20to,and%20Raw%20Cotton%20(%24140M).

[9] Ibid 8

[10] (1997) Agreement between the Government of the Republic of India and the ... Available at: https://dea.gov.in/sites/default/files/Egypt.pdf

[11]Central Board of Direct Taxes, Government of India. Available at: https://incometaxindia.gov.in/DTAA/108690000000000094.htm

[12]Mohan, C.R. (2023) Delhi’s Cairo outreach, The Indian Express. Available at: https://indianexpress.com/article/opinion/columns/pm-narendra-modi-egypt-el-sisi-meeting-republic-day-2023-delhis-cairo-outreach-8404895/

[13]Chauhan, A. (2023a) Modi’s visit to Egypt: A look back at the relationship between Delhi and Cairo, and where it stands today, The Indian Express. Available at: https://indianexpress.com/article/explained/explained-global/modis-egypt-relationship-delhi-cairo-8684235/

[14] Sibal, S. (2023) Exclusive: ‘Cairo can add value to summit’: Top Egyptian official on receiving G20 invitation from New Delhi, WION. Available at: https://www.wionews.com/world/exclusive-excellent-thing-to-think-of-top-egyptian-official-on-growing-cairo-new-delhi-ties-591987

[15] New Zealand Embassy (2021) The importance of the Suez Canal to global trade - 18 April 2021, New Zealand Ministry of Foreign Affairs and Trade. Available at: https://www.mfat.govt.nz/en/trade/mfat-market-reports/the-importance-of-the-suez-canal-to-global-trade-18-april-2021

[16] Ibid 15

[17i]Roy, S. (2023) India, egypt sign pact on strategic partnership as Modi, el-sisi hold talks, The Indian Express. Available at: https://indianexpress.com/article/india/india-egypt-sign-pact-on-strategic-partnership-as-modi-el-sisi-hold-talks-8685999/

[18i]Ibid 17

[19]  Department of Commerce, Ministry of Commerce and Industry, Government of India.

[20]Egypt to offer exclusive industrial cluster to India in Suez Canal Ez (2023) Business Standard. Available at: https://www.business-standard.com/india-news/egypt-to-offer-exclusive-industrial-cluster-to-india-in-suez-canal-ez-123062300421_1.html

[21]Inaugural edition of indo-egypt joint training exercise cyclone - I commences in Rajasthan (2023) Press Information Bureau. Available at: https://pib.gov.in/PressReleasePage.aspx?PRID=1892377#:~:text=The%20first%20ever%20joint%20exercise,Rajasthan%20since%2014%20January%202023

[22]Air Forces of India and Egypt conduct Two-day joint exercise (no date) The Times of India. Available at: https://timesofindia.indiatimes.com/india/air-forces-of-india-and-egypt-conduct-two-day-joint-exercise/articleshow/87492637.c

[23]Why is Indian PM Narendra Modi’s Egypt visit significant? (2023) Narendra Modi News | Al Jazeera. Available at: https://www.aljazeera.com/news/2023/6/24/why-is-indian-prime-minister-modis-egypt-visit-significant

[24]Ibid23

Pic Courtsey-Simon Berger at unsplash.com

(The views expressed are those of the author and do not represent views of CESCUBE.)