PM Visits Egypt

Source : Indian Express
GS II : International Relation

Overview

1. About the visit
2. India Egypt Relation
3. Issues that affect India-Egypt relation

Why in News ?

Recently PM Modi was on a two day visit to Egypt from 24-25 June 2023. The visit is the first by any Indian PM since 1997.

Key Facts

• India and Egypt upgraded their connection to a “Strategic Partnership,” which is meant to have four essential components: political

  

  and security cooperation; academic and scientific cooperation; cultural and people-to-people exchanges.

• Both sides agreed on
  • Archaeological sites; and competition law
  • Agriculture and related industries.
  • Monumental preservation and protection
• The leader spoke on G-20 cooperation going forward while underlining challenges including climate change, food and energy insecurity, and the need for the Global South to speak with one voice.
• President Abdel Fattah El-Sisi presented PM Modi with the Order of the Nile the highest honour bestowed by Egypt, at the Presidential palace in Cairo.

India Egypt Relation

• Ashoka’s edicts refer to his relations with Egypt under Ptolemy-II.
• Just three days after gaining independence on August 15, 1947, India forged a bilateral alliance with Cairo. 
• Both countries, along with Ghana, Indonesia, and Yugoslavia, were instrumental in the creation of the Non-Aligned Movement (NAM).
• When Egypt nationalised the Suez Canal in 1956, Israel and then France and Britain attacked Egypt as a result, and Nehru denounced the attacks on Cairo.
• Maulana Azad Centre for Indian Culture (MACIC) was established in Cairo in 1992. The centre has been promoting cultural cooperation between the two countries.
• In 2022–23, India’s trade with Egypt was USD 6,061 million, a 17% decrease from the previous year.
• Petroleum was involved in close to one-third of it.
• In 2022–2023, Egypt was India’s 38th largest commercial partner while India was Egypt’s sixth.
• Indian investments in Egypt amount $3.15 billion, divided over 50 projects.
• Egypt has made a US$37 million investment in India.
• The first joint special forces exercise between the Indian Army and the Egyptian Army, “Exercise Cyclone-I” was completed in January 2023 in Jaisalmer, Rajasthan.

How the corporation of Both India and Egypt helps?

• Egypt is politically stable and its socio-economic conditions are quite similar to India.
• Egypt’s strategic location is crucial role in the greater geopolitics of the Indian Ocean
  • Its closeness to one of the primary trade route Suez Canal.
  • 13% of world trade goes through the Suez Canal.
• Equipment for the military is exported by India to more than 42 nations, including Egypt.
• Egypt interest in purchasing Tejas aircraft from India.
• Around 3,600 Indians live in Egypt and work in a variety of occupations, demonstrating the country’s active Indian diaspora.
• In order to prevent religious extremism, India supports moderate nations in the area like Egypt.
• Egypt is looking for investments in infrastructure, such as the Cairo and Alexandria Metro projects, a Suez Canal economic zone, a second Suez Canal channel, and a new administrative capital in a suburb of Cairo.

What are the issues that affect India-Egypt relation?

• China Factor
  • China’s bilateral trade with Egypt is currently at USD 15 billion, double that of India’s USD 7.26 billion in 2021-22.
  • Egypt is still inviting China’s investment and higher officials frequent visit to china for negotiations. 
• Economy
  • Foreign debt is over USD 163 billion.
  • Recently situation compelled the government to issue postponement of projects with a large foreign currency component.
  • It also cuts down its non-essential spending.
  • Annual Inflation is above 30%.

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