Egypt plans to allot land to Indian industries in Suez Canal Special Economic Zone. A joint statement released by the two countries at the summit meeting said that the Indian side can arrange the master plan for the proposal. 

The proposal is in the context of India’s offer to encourage its companies to undertake overseas investments. Notably, Egyptian President Abdel Fattah El-Sisi was the Chief Guest for the celebration of the 74th Republic Day. This is for the first time that the President of the Arab Republic of Egypt was invited for the occasion.

India-Egypt strategic cooperation to promote peace: 

The strategic cooperation between the two countries can help promote peace and prosperity in the entire region as one side of the Arabian Sea is India and on the other side is Egypt. Welcoming the interest shown by Egypt, Prime Minister Narendra Modi said, “We have decided that under the India-Egypt strategic partnership, we will develop a long-term framework of greater cooperation in political, security, economic and scientific fields.”

Both PM Modi and Egyptian President El-Sisi welcomed the expansion of Indian investments in Egypt, which is currently more than $3.15 billion. The statement said, Egypt welcomes the flow of more Indian investments and promises to offer incentives and facilities as per applicable regulations and frameworks. 

Bilateral trade between the two countries stood at $7.26 billion in 2021-22:

The two leaders appreciated the strong bilateral economic engagement between the countries. Despite the challenges posed by the pandemic, the current level of bilateral trade is $7.26 billion dollars in 2021-22. 

Also, the leaders expressed confidence that the bilateral trade can reach up to $12 billion within the next 5 years. Certain provisions like the diversifying of trade basket and focusing on value addition were also discussed. 

MoU inked for Cultural Cooperation:

India has also signed a Memorandum of Understanding (MoU) on Cultural Cooperation with the Government of Egypt. The MoU is to strengthen the cultural ties and is for a period of 5 years. The MoU was signed and exchanged on 25th January 2023 by the Culture Minister G. Kishan Reddy and Foreign Minister of Egypt Sameh Hassan Shoukry. Under the aegis of the MoU, the exchange of cultural activities in the realm of music, dance, theatre and literature is soon expected. 

Significance of Egypt’s Suez Canal for India:

Egypt’s Suez Canal hold crucial importance for India as it is the most popular trade route between Asia and Europe. The Suez Canal, under Egyptian jurisdiction, connects the Mediterranean Sea with the Red Sea and the Indian Ocean.

Egypt is also close to gas and oil producing countries UAE and Saudi Arabia, due to which it also has a lot of influence in the Mediterranean Sea. In such a situation, this step will prove beneficial for India in the direction of making its strategic advantage in West Asia and Africa.