The pandemic and the Russian invasion of Ukraine hobbled Egypt’s economy. Foreign debt is over $163 billion (43% of its GDP), slowing down plans to upgrade infrastructure. These are opportunities for Indian investment, currently at $3.15 billion. The upgrade and renewed focus – President Abdel Fattah el-Sisi was state guest for this year’s Republic Day – allows for mutually beneficial arrangements. India imports oil and gas as well as chemical fertilisers from Egypt. Indian companies are already investing in renewable energy and green hydrogen projects. The dedicated cluster in the industrial and logistics hub, Suez Canal Economic Zone, will help India’s efforts to reach markets in Africa, West Asia and Europe. The upgrading of the relationship will be reflected in the defence collaborations – joint exercises to control piracy, counterterrorism efforts and production. Egypt plans to acquire light combat aircraft. Hindustan Aeronautics Ltd (HAL) has proposed its indigenous single-engine HAL Tejas fighter for consideration, and offered to establish a production line in Egypt, facilitating technology transfer.
As the most populous Arab state that is part of Africa and West Asia, Egypt is India’s key partner in this region. It is an opportunity for New Delhi to demonstrate that it views bilateral relations with Cairo as a partnership.
