India, Egypt to Promote Trade and Investment, Fight Terrorism – The Diplomat

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Egyptian President Abdel Fattah El-Sissi is in New Delhi as the chief guest at India’s Republic Day parade.

India, Egypt to promote trade and investment, fight terrorism

Indian Prime Minister Narendra Modi (R) shakes hands with Egyptian President Abdel Fattah El-Sissi in New Delhi, India, January 25, 2023.

Credit: Twitter/ Narendra Modi

India and Egypt agreed on Wednesday to increase trade between their countries during a visit by the Egyptian president that underscores Prime Minister Narendra Modi’s efforts to strengthen ties with other emerging economies.

Modi and President Abdel Fattah El-Sissi agreed on measures to increase two-way trade to $12 billion within five years. Trade totaled $7.3 billion in 2021-22. The two countries also signed agreements to expand cooperation in cyber security, information technology, culture and broadcasting.

Modi and El-Sissi expressed concern over disruptions in food supplies and other critical resources due to the war in Ukraine. Modi sought Egypt’s cooperation in combating cross-border terrorism, extremism and cyber threats.

Egypt’s economy has been strained by the pandemic and Russia’s war in Ukraine, which pushed the prices of oil and other commodities to record highs. One of the world’s biggest importers of wheat, it got help from the World Bank last year to finance its grain purchases when supplies from Ukraine were cut off.

Imports from India helped bridge the gap. New Delhi banned most wheat exports, but made an exception for countries like Egypt that faced severe shortages.

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India is among the top five importers of Egyptian products, including crude oil and liquefied natural gas, salt, cotton, inorganic chemicals and oilseeds. Major Indian exports to Egypt include cotton yarn, coffee, herbs, tobacco, lentils, parts for vehicles, ships, boats and electrical machinery.

El-Sissi invited Indian companies to invest more in the Suez Canal Economic Zone. More than 50 Indian companies have invested about $3.15 billion in various parts of the Egyptian economy, including chemicals, energy, textiles, garments, agri-business and retail, according to India’s Ministry of External Affairs.

India is hosting the Group of 20 major economies this year, and Modi has invited El-Sissi to attend as one of his special guests.

El-Sissi will be the chief guest at India’s Republic Day parade on Thursday, marking the anniversary of the adoption of the country’s constitution on January 26, 1950. India won independence from British colonial rule in 1947.

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