PM Visits Egypt

IAS Current Affairs

1 year ago

PM Visits Egypt

Source : Indian Express
GS II : International Relation

Overview

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.

India and Egypt upgraded their connection to a “Strategic Partnership,” which is meant to have four essential components: political
Image by Thorsten Dittmar from Pixabay

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.

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.

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.

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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