PM Modi Visits Cairo: A New Chapter in India-Egypt Ties?

India and Egypt have transformed their relations since the time of the Non-Aligned Movement, which they founded.

Indian Prime Minister Narendra Modi and President Abdel Fattah el-Sisi of Egypt. 

(Photo: Twitter/@narendramodi)

During the bipolar era of the Cold War, when most nations aligned themselves with either of the two superpowers, a few nations chose to pursue a different path and advocated for a non-aligned policy that upheld their sovereignty and independence. India and Egypt demonstrated that it was possible to exist in a bipolar world without joining any of the two power blocs. They were among the nations that defied the pressure to align with either of the superpowers.

India and Egypt have transformed their relations from being the founders of the Non-Aligned Movement to becoming strategic partners in the current global scenario. However, it was only after 2014 that their bilateral ties witnessed significant progress, as the current leaders of both countries, President Abdel Fattah el-Sisi of Egypt and Prime Minister Narendra Modi of India, made concerted efforts to enhance their cooperation and elevate their relations to a new level.

The bilateral relations between India and Egypt were expected to reach the strategic height after the visit of President Hosni Mubarak to India in 2008. However, this initiative was interrupted by the Arab Spring uprising in 2011, which ousted Mubarak and caused political instability in Egypt.

As the world order evolves into a multipolar configuration, with shifting geopolitical and economic dynamics, how India is deepening its relations with Egypt, a populous and influential actor in the region? And how has India's relationship with Egypt evolved from a NAM friend to a strategic partner and what are the opportunities and challenges for India in strengthening its ties?

India-Egypt Ties Have Come a Long Way

When India and Egypt jointly announced the establishment of diplomatic relations at the Ambassadorial level on 18 August 1947; just three days after India became independent, it reflected their mutual aspiration to build close and friendly relations based on common values and interests. The establishment of diplomatic relations also indicated recognition of sovereignty and support for their independence struggle. From there, India’s relations with Egypt intensified as India and Egypt signed a friendship treaty in 1955 and co-founded the Non-Aligned Movement (NAM) in 1961 with other developing countries.

As India's relations with Egypt evolved over the years, the two countries cooperated closely in various multilateral fora such as the United Nations, the Group of 77, and the Organization of Islamic Cooperation (OIC). They mutually supported each other’s candidature for different UN bodies and committees, as well as for the non-permanent seat of the UN Security Council.

India also extended its support to Egypt during its critical events such as the Suez Crisis in 1956 and the Six-Day War in 1967.India also aided Egypt and the Arabs in rebuilding their economies after the Six-Day War.

In addition to supporting each other in the aforementioned fields, India enhanced its bilateral trade relations by granting Egypt the “Most Favored Nation” status in 1978. The bilateral trade agreement provided for reciprocal treatment of each other's exports and imports on par with any third country. The agreement also helped to expand and diversify trade between the two countries over the years.

Recognizing the strategic significance of each other, the relationship between the two countries reached a new level when India invited Sisi to be the chief guest at the 2023 Republic Day Parade. During this visit, both countries agreed to elevate their ties to a strategic partnership.

What’s Driving Egypt and India’s Deepening Ties?

India and Egypt have a long-standing bilateral relationship, rooted in their ancient civilizations. The Indus Valley civilization and Nile valley civilization coexisted and traded with each other. In the contemporary era, Egypt’s role and influence in Africa and the Arab world, as well as its potential as a gateway to the African markets and a partner in development cooperation, have contributed to the deepening of India’s relations with Egypt over the years.

In 2020, India authorized exports of defence products to 42 countries, including Egypt. “Strengthening cooperation in the defence field is the best proof of the common will to inaugurate a strategic relationship between the two countries”, Sisi said during his speech at the Hyderabad House (Jan 2023).

Out of 42 countries that India authorized exports defence products to, more than one-fourth are from the WANA region and use the Suez Canal as their maritime trade route. Therefore, India’s ties with Egypt, which controls the Suez Canal, become paramount.

Another important factor for the deepening of their ties is the economic dimension, which has witnessed a rapid growth in 2021-22, with bilateral trade reaching 7.26 billion dollars, a 75 percent increase compared to the previous fiscal year. India’s exports to Egypt amounted to 3.74 billion dollars, while Egypt’s exports to India reached 3.52 billion dollars. India is the sixth largest trading partner of Egypt, while Egypt is the 32nd trade partner of India.

India Needs to Enhance Its Maritime Ties With Egypt

Maritime security is a key factor in India-Egypt relations, in addition to geopolitical, security, strategic and commercial interests. India and Egypt are located on opposite sides of the Arabian Sea, which gives Egypt a key role in India’s maritime security. Egypt has a dominant presence in the Red Sea and controls the entrance to the Mediterranean Sea through the Suez Canal. It also has significant influence in the Horn of Africa and North Africa, which are vital regions for India.

Egypt’s strategic location makes it a valuable partner for India. The Suez Canal, which Egypt controls, links the Mediterranean Sea and the Red Sea, opening up the global markets of Europe and America. Official data show that 12 percent of world trade flows through the canal. India, which aims to boost its exports to these regions, can leverage Egypt’s role as a bridge and a hub.

India and Egypt have cooperated and partnered in maritime security, by conducting joint naval exercises and sharing information to counter piracy, smuggling and other maritime threats. These collaborations have enhanced the security and stability of the region in recent years. India has also provided training and expertise to Egyptian naval personnel in coastal surveillance systems.

“The connection between Egypt and India is very obvious. For India, the security of the Indian Ocean is very much related to the security of the Red Sea. For Egypt, the security of the Suez Canal, a primary artery of international trade, is part of the security of the Red Sea and therefore is affected by security in the Indian Ocean. Both of them are closely interlinked”. Egyptian ambassador told while talking to the Hindustan Times.

In light of the aforementioned reasons, maritime security becomes more vital and India needs to explore ways to strengthen its maritime security cooperation with Egypt.

Challenges and Opportunities

With a population of 105 million and an economy of 378 billion US dollars, Egypt has a high demand for various products such as wheat, cars, corn and pharmaceuticals. India has the potential to supply these products as well as refined petroleum, which is Egypt’s largest import item.

Egypt is undergoing a historic transformation with various ambitious development projects. These include nearly 50 mega projects, such as the construction of a new city worth 58 billion USD and a high-speed rail network worth 23 billion USD. Moreover, Egypt is the third largest arms importer in the world (2015-19). These factors offer ample opportunities for India to engage with Egypt.

Renewable energy, especially green hydrogen production, is an area of interest for India. The Suez Canal region offers investment opportunities for Indian companies to participate in renewable energy projects and align with Egypt’s sustainable development goals. This would enable Indian firms to acquire expertise in renewable energy technologies and support the global shift towards cleaner energy sources.

However, as the proverb goes, every opportunity comes with a challenge. To begin with, Egypt has experienced a high inflation rate of over 30 percent and a sharp depreciation of its currency by more than half of its value since February 2022. Moreover, Egypt has a large foreign debt of above 163 billion USD (43 percent of Egypt’s GDP) and a negative net foreign asset position of minus 24 billion USD. These economic conditions pose serious difficulties for India’s cooperation with Egypt.

As the world order evolves into a multipolar dispensation, with shifting geopolitical and economic dynamics, it is imperative for India to foster good relations with countries like Egypt that have a significant role and influence in the region. Moreover, in the face of China’s growing presence and clout in the Arab world, India needs to enhance its engagement and cooperation with Egypt and other Arab countries to safeguard its interests and position.

(Sharib Ahmad Khan is a freelance journalist and researcher based in New Delhi, and Aamir Shakil is a researcher on international affairs. This is an opinion piece and the views expressed are the author’s own. The Quint neither endorses nor is responsible for them.)