Date : 30/06/2023
Relevance – GS Paper 2 – International Relations
Keywords – Strategic Partnership, South-South Cooperation, Bilateral Trade Agreement
Context –
Egypt, a crucial country in West Asia with a significant geo-strategic location, holds immense importance as 12% of global trade passes through the Suez Canal. It serves as a gateway for India to Europe and Africa and has bilateral trade agreements with key nations in West Asia and Africa.
Upgraded Partnership:
The recent elevation of India and Egypt's ties to a Strategic Partnership signifies a long-overdue move that acknowledges their historical connections and strengthens India's relationship with the West Asia-North Africa (WANA) region. The two countries aim to enhance cooperation in areas such as green energy, pharmaceuticals, and defense, with agreements encompassing agriculture, archaeology and antiquities, and competition law.
India-Egypt Relations: A Historical Perspective
Ancient Times:
- The roots of India's association with Egypt can be traced back to the trade contacts between these ancient civilizations along the Nile and the Indus rivers.
Under Nehru's Leadership:
- During the Cold War era, India and Egypt shared a common desire not to align themselves with either the United States or the Soviet Union. In 1955, Egypt, led by Gamal Abdel Nasser, and India, led by Jawaharlal Nehru, became the founding members of the Non-Aligned Movement. Nehru's support for Egypt during the 1956 War was so strong that he even threatened to withdraw India from the British Commonwealth.
South-South Cooperation:
- India and Egypt played instrumental roles in the G-77 grouping and initiatives promoting "South-South Cooperation."
What is South-South Cooperation?
The countries of the world are classified on the basis of development. Thus, we have developed and rich countries, developing countries and finally Least Developed Countries. If we carefully observe, the developing and Least Developed Countries (LDCs) are located in the Southern Hemisphere of the globe, whereas developed countries are located in the Northern Hemisphere. Due to this geographical fact, scholars have termed developed countries as ‘North’ and developing countries and LDCs as `South’.
Therefore, when the countries of the South or developing countries cooperate in various fields, it is known as South-South Cooperation or Dialogue. Thus, the term South-South Cooperation means the process of cooperation among the developing countries in the economic field and other areas. At present, South-South Cooperation is promoted as a viable strategy by developing countries for their development and progress.
Conversely, when the cooperation and dialogue between the developed North and developing South takes place, it is known as North-South Dialogue. The South-South Cooperation has been adopted by the Non-Aligned Movement as the basic principle of its economic approach to achieve the dream of collective self-reliance among developing countries. Though the term South-South Cooperation emerged in the 1970s, the idea has been on the agenda of NAM for a long time. It is also a basic approach of India’s economic diplomacy towards, developing countries and LDCs.
Friendship Treaty & Bilateral Relations:
In the 1950s, India and Egypt further deepened their relationship by signing a historic Friendship Treaty in 1955. In recent years, these traditionally strong bilateral ties have received renewed impetus through regular high-level meetings and interactions between the two nations.
Trade & Commerce:
Egypt has long been a significant trading partner for India in Africa. The India-Egypt Bilateral Trade Agreement, based on the Most Favored Nation clause, has been in effect since March 1978. Notable Egyptian exports to India include raw cotton, fertilizers, oil products, chemicals, leather, and iron products. India exports cotton yarn, sesame, coffee, herbs, tobacco, and lentils to Egypt. Additionally, India exports mineral fuel, vehicle parts, ships, boats, electrical machinery, and parts to Egypt.
Opportunities Between India and Egypt :
Combat Religious Extremism: India aims to combat Religious Extremism by supporting moderate countries in the region and promoting social reforms.
- India has identified it as a key player in the Gulf Region since it maintains a moderate stance on religion, enjoys strong relations with the UAE (United Arab Emirates) and Saudi Arabia (which have made substantial investments in Egypt).
Strategically Located: Egypt holds a strategically significant position with the Suez Canal, through which 12% of global trade passes.
- By enhancing bilateral relations with Egypt, India hopes to advance its goals in the region.
Indian Investment: Egypt seeks investments in infrastructure — Metro projects in Cairo and Alexandria, a Suez Canal economic zone, a second channel of the Suez Canal, and a new administrative capital in a Cairo suburb.
- More than 50 Indian companies have invested more than USD 3.15 billion in Egypt.
Similar Socio-Economic Conditions:
Egypt is a large country (population 105 million) and economy (USD 378 billion). It is politically stable, and its socio-economic conditions are quite similar to India.
- Egypt’s largest imports are refined petroleum, wheat (world’s largest importer), cars, corn and pharmaceuticals — all of which India has the potential to supply.
Infrastructure Development: Moreover, the Egyptian government has an ambitious infrastructure development agenda, with 49 mega projects including the construction of a New Cairo (USD 58 billion), a USD 25 billion nuclear power plant and a USD 23 billion high-speed rail network.
- During 2015-19, Egypt was the world’s third-largest arms importer. These present opportunities for India.
Technical and Scientific Cooperation:
Technical cooperation and assistance have played a crucial role in strengthening bilateral relations. Egyptian candidates participate in the Indian Technical and Economic Cooperation Programme (ITEC), and in 1998, the Indian Council of Agricultural Research (ICAR) and the Agricultural Research Center of the Ministry of Agriculture & Land of Egypt signed an MoU for cooperation in agricultural research.
Cultural Links between India and Egypt :
To promote cultural cooperation, the Maulana Azad Centre for Indian Culture (MACIC) was established in Cairo in 1992. MACIC organizes cultural festivals, offers Hindi, Urdu, and Yoga classes, screens Indian movies, and promotes Indian culture. The annual 'India by the Nile' festival celebrates Indian classical, contemporary, performing and visual arts, food, and popular culture in Egypt, supported by the Indian Council for Cultural Relations (ICCR) and the Egyptian Ministry of Culture.
Revival of Defense Partnership:
The defense partnership between India and Egypt has witnessed a revival, including the visit of an Indian Navy ship to Egypt, a month-long Air Force exercise, and the visit of the Egyptian Air Force chief to India.
Recent Developments:
Positions on Ukraine War:
India and Egypt have shared similar positions on the Ukraine war, refraining from criticizing Russia's actions while also calling for a diplomatic resolution.
India's Wheat Supply to Egypt:
India's decision to supply wheat to Egypt, a major wheat importer impacted by export blockades from Russia and Ukraine, earned appreciation from Cairo and strengthened goodwill between the two countries.
Egypt's Highest State Honour:
During President El-Sisi's visit to India as the chief guest on India's Republic Day, he conferred Egypt's highest State Honour, "The Order of The Nile," on Prime Minister Narendra Modi. This prestigious award recognizes leaders who have made invaluable contributions to Egypt or humanity.
Looking Ahead:
Bolstered by their historical ties and motivated by current geopolitical dynamics, India and Egypt are forging a closer relationship that prioritizes future economies and autonomous foreign policies.
Probable Questions For Mains exam
- Question 1: Explain the significance of the recent upgrade in India-Egypt ties to a Strategic Partnership. Discuss the potential areas of cooperation between the two countries and their implications for India's relationship with the West Asia-North Africa (WANA) region. (10 Marks, 150 Words)
- Question 2: Evaluate the historical roots and evolution of India-Egypt relations, highlighting key milestones such as the Friendship Treaty and their roles in the Non-Aligned Movement and South-South Cooperation. Analyze the impact of these historical ties on the present-day bilateral relations between India and Egypt. (15 Marks, 250 Words)
Source – The Hindu
