India and Egypt, two heavyweights of the Global South, strengthen ties in defense and economic cooperation
Indian Prime Minister Narendra Modi visited Cairo for a two-day trip to meet with Egyptian President Abdel Fattah el-Sisi.
Their discussions focused on enhancing defense and economic cooperation between the two countries.
This visit is part of an effort to strengthen the relationship beyond historical and diplomatic ties and move towards a strategic partnership.
Defense collaboration is a key area of interest for both India and Egypt.
India sees an opportunity to offer its indigenous HAL Tejas fighter aircraft to Egypt, which plans to acquire a significant number of light combat aircraft.
India’s Hindustan Aeronautics Ltd. (HAL) has proposed establishing a production line in Egypt, facilitating technology transfer and potential exports to other regions.
Additionally, India has presented an advanced light helicopter and its combat variant for consideration.
Economic cooperation was also discussed during the visit. Egypt seeks a barter agreement with India to conduct trade without relying on the U.S. dollar.
This could involve payments in rupees or through exports of fertilizer and gas, addressing India’s import needs.
There is a possibility of India extending a significant line of credit to Egypt as part of a broader agreement.
Bilateral trade between India and Egypt reached a record high of US$7.26 billion in the 2021-2022 fiscal year, with a goal of reaching US$12 billion within the next five years.
Egypt is an important supplier of energy commodities to India, including crude oil and liquefied natural gas.
Egypt sees India, particularly the Asian market, as a promising destination for its natural gas exports.
India views Egypt as a crucial partner in its Global South initiative, which aims to balance power dynamics and protect the interests of developing countries.
Egypt’s political and strategic significance in the Middle East and Africa, as well as its history as a leader in the Non-Aligned Movement, make it an important ally for India.
Strengthening ties with Egypt also serves as a response to strained relations with neighboring China.
Overall, Prime Minister Modi’s visit to Egypt signifies the intent to promote peace and prosperity in the region through strategic cooperation between the two nations.
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