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India - Egypt Economic & Commercial Relations

Egypt has traditionally been one of India’s most important trading partners in the African continent. The India-Egypt Bilateral Trade Agreement has been in operation since March 1978 and is based on the Most Favoured Nation clause and our bilateral trade has increased more than five times in the last ten years. According to the Egyptian Central Agency for Public Mobilization and Statistics (CAPMAS), India was Egypt’s 10th largest trading partner in the year 2017-18. It was the 7th largest importer of Egyptian goods and the 11th largest exporter to Egypt for the same duration.

2.      The bilateral trade volume between the two countries had shown consecutive positive growth from 2005-06 to 2012-13, taking the trade from US$ 1.2 billion to its peak of US$ 5.45 billion. The trade volume declined gradually US$ 4.95 billion in 2013-14 to US$ 4.77 billion in 2014-15 and to US$ 3.23 billion in 2016-17 due to general economic slowdown and decline in oil prices. However, bilateral trade has registered a significant positive increase again in 2017-18 to US$ 3.68 billion.

3.      On a year-on-year basis, Indian exports to Egypt increased by 15.5% in 2017-18, whereas Indian imports from Egypt also increased by 11.3%.

 

4.     Bilateral trade figures in USD million for the ten year period (2008-18) are provided below:

 

Fiscal Financial Year

April - March

Total Exports to Egypt

Total Imports from Egypt

Total Trade

Trade Balance

2008 – 09

1,699

2,121

3,821

(-) 421

2009 – 10

1,403

1,692

3,096

(-) 288

2010 - 11

1,982

1,354

3,336

(+) 627

2011 – 12

2,421

3,002

5,424

(-) 580

2012 – 13

2,897

2,553

5,450

(+) 343

2013 - 14

2,562

2,338

4,951

(+)224

2014 - 15

3,025

1,740

4,766

(+) 1,28

2015 – 16

2,337

1,221

3,558

(+) 1,11

2016 – 17

2,071

1,161

3,233

(+) 910

2017-18

2,392

1,292

3,685

(+) 1,099

Source: DGCIS of INDIA

 

 

I.   India’s Exports to Egypt

India's top exported items to Egypt in 2017-18 were Meat of Bovine Animals (10.4% out of total exports to Egypt), Light Vessels, Fire-floats, Dredgers, Floating Cranes (8.93%), Petroleum Oil (7.85%), Cotton Yarn (6.95%), and Petroleum Oil (5.6%).

 

II.   India’s Imports from Egypt

India's top imported items from Egypt for 2017-18 were; Petroleum Oil (53.17% of total imports), Petroleum gases and other gaseous hydrocarbons (11.89%), Natural Calcium Phosphates (8.43%), Raw Cotton (5.74%), and Coke and semi-coke from coal (2.76%).

INVESTMENTS

Indian Investments in Egypt:

Indian companies are operating in virtually all the major sectors of the Egyptian economy including textiles and garments, power, chemicals including specialty chemicals, adhesives, pharmaceuticals, information technology, paints, consumer goods, healthcare, PVC, caustic soda, PET Resin, plastics, paper, packaging, auto and auto-component. Over 450 Indian companies are trading and operating in Egypt, out of which around 50 Indian companies are in manufacturing and construction with a combined investment of more than US$ 3.3 billion, approximately half are joint ventures and wholly owned Indian subsidiaries and the rest of the Indian companies are operating in Egypt through their representative offices and executing various projects for Governmental organizations.

Major Indian investments in Egypt include TCI Sanmar, Alexandria Carbon Black, Egypt-India Polyester Company (EIPET), Embee International, Velocity Apparelz, Galaxy Chemicals, Essel Propack, Flex P. Films, Lulu Hypermarket, Misr Hytech Seed International etc.

 

Many Indian companies – Kalpataru Power Transmission, Dee Developers, Jyoti Structures Ltd. – are working in several energy projects in Egypt.  Sterling & Wilson Ltd (Shapoorji Pallonji Group) is the latest working on a 200 MW solar project in Benban Solar Park. An Indian Joint Venture Pharmed Healthcare launched a new factory for manufacturing Hetrosvir, a drug used in treatment of Hepatitis C. Lulu Group of Companies opened its first Hypermarket in Egypt in December 2015 with an initial investment of around US$ 50 million.

 

Indian companies are providing direct and indirect employment to approximately 35,000 Egyptians.   The direct employment generated by Indian companies is more than 21,200 and the indirect employment amounts to more than 13,500. 

 

Egyptian Investments in India:

Investments by Egyptian companies in India is about US$ 60 million. El Sewedy group established its presence in Noida, Uttar Pradesh in 2013 for manufacturing of smart electric meters.  KAPCI Coatings set up their manufacturing plant in Bangalore to produce car paints with an investment of US $ 20 million. Modern Waterproofing Group (Bitumode) is a multinational group of companies that is engaged in manufacturing a wide range of products for the construction industry including waterproofing membranes and protection boards. The company owns production facilities in four different countries: Egypt, India, Morocco, and Qatar.

IBF

India Business Forum (IBF) in Egypt was launched in 2012 by the Embassy of India, Cairo with the Confederation of Indian Industry (CII), one of India’s premier business organization. The CII IBF is a platform for Indian companies in Egypt to share information and raise issues of concern to authorities in Egypt and India. IBF also aims to promote and support the activities of its members in Egypt and play a catalyst role in enhancing trade and investment between the two countries. The Ambassador of India to Egypt is the Patron of the IBF. CII has 66 offices including 9 Centers of Excellence in India & 8 overseas offices including one in Egypt. 


Economic Relations

         Egypt has been traditionally one of India’s most important trading partners in the African continent. The India-Egypt Bilateral Trade Agreement has been in operation since March 1978 and is based on the Most Favoured Nation clause and the bilateral trade has increased more than five times in last ten years. The bilateral trade volume between the two countries had shown consecutive positive growth from 2005-06 to 2012-13, taking the trade from US$ 1.2 billion to its peak of US$ 5.45 billion. The trade volume declined gradually US$ 4.95 billion in 2013-14 to US$ 4.77 billion in 2014-15 and to US$ 3.23 billion in 2016-17 due to general economic slowdown and decline in oil prices. However, bilateral trade has registered a significant positive increase again in 2017-18 to US$ 3.68 billion. Compared to the previous year, Indian exports increased by 15.5% in 2017-18, whereas Indian imports from Egypt also increased by 11.3%.

Indian companies are operating in virtually all the major sectors of the Egyptian economy including textiles and garments, power, chemicals including specialty chemicals, adhesives, pharmaceuticals, information technology, paints, consumer goods, healthcare, PVC, caustic soda, PET Resin, plastics, paper, packaging, auto and auto-component. Over 450 Indian companies are trading and operating in Egypt, out of which around 50 Indian companies are in manufacturing and construction with a combined investment of more than US$ 3.3 billion, approximately half are joint ventures and wholly owned Indian subsidiaries and the rest of the Indian companies are operating in Egypt through their representative offices and executing various projects for Governmental organizations.

Major Indian investments in Egypt include TCI Sanmar, Alexandria Carbon Black, Egypt-India Polyester Company (EIPET), Embee International Industries, Velocity Apparelz, Galaxy Chemicals, Essel Propack, Flex P Films, Lulu Hypermarket, Misr Hytech Seed International etc. Indian companies are present in almost every sector including apparel, agriculture, chemicals, energy, automobiles, retail and others. Overall, these companies provide direct and indirect employment to approximately 35,000 Egyptians.

 

Egyptian investments in India include ElSewedy Electrometer (invested $ 30m in the first phase and has plans to further invest US $ 150 million in the second phase in Noida); KAPCI car paints (US$ 20 million in Karnataka); and Modern Waterproofing (US$ 3 million in Dahej).

 

The grants-in-aid projects include: Pan Africa Tele-medicine and Tele-education project in Alexandria University, Solar electrification project in Agaween village and Vocational Training Centre for textile technology in Shoubra, Cairo, which have all been completed and the Centre of Excellence in IT is being established at the Al Azhar University, Cairo. At present, there is no ongoing LoC project in Egypt; however discussions are ongoing on finalisation of some LoC projects in Egypt.

 

Technical cooperation and capacity building has played a major role in our bilateral relationship. Since the year 2000, over 900 Egyptian government officials have benefited from ITEC programmes. Since 2014, nearly 500 Egyptians participated in the ITEC and IAFS-III training programmes conducted by various training institutions in India. So far, 16 Egyptian diplomats have attended PCFD at the Foreign Service Institute, New Delhi. Over 70 Egyptian researchers and scientists have benefited from CV Raman International Fellowship for African Researchers. In 2015-16, 110 slots were allotted to Egypt under ITEC, which was increased to 200 slots in 2017-18 after a request for an increase and the same has been allotted for 2018-19. In the field of scientific cooperation, ICAR and the Agricultural Research Center of Egypt are working closely to strengthen cooperation in the field of agricultural research. Under the Science & Technology cooperation both sides are implementing the agreed Executive Programme. 

 

Commercial Support Team:

·         Dr. Vinod Bahade,

First Secretary (Commerce)

Phone: +202-27355794

Email: com.cairo@mea.gov.in

·         Mr. Fahad Suri,

Second Secretary (Commerce)

Phone No.: 2736-0223
e-mail: 
fahad.suri14@mea.gov.in

 

·         Mr. Vivian Yuhanna,

Attache (Commerce)

Phone No.: 2736-1014
e-mail: 
attcom.cairo@mea.gov.in

      For Commercial Inquiries:

·         Ms. Mona Hassan, Marketing Manager
Phone No.: 2736-1014 & 27360052 Ext. 129

e-mail: mona@indembcairo.com

 

·         Mr. Ahmed Ali, Commercial Executive

Phone No.: 2736-1014 & 27360052 Ext. 135

e-mail: ahmed.ali@indembcairo.com

 

·         Mr. Tamer Adel, Commercial Executive

Phone No.: 2736-1014 & 27360052 Ext. 135

e-mail: tamer@indembcairo.com

 

·         Mr. Kamal Nabil, Commercial Executive

Phone No.: 2736-1014 & 27360052 Ext. 135

e-mail: kamal@indembcairo.com

 

 

 




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