India’s success stories in bilateral relations with Egypt & UAE

From the editor’s desk

By Rabindra Mukherji

Though Indian Prime Minister Narendra Modi’s recent visits to US and France have been much publicized and debated upon, there were two other important visits he had embarked on which were not paid attention to, owing to the influence of social media on mainstream media these days. While returning to India from his US visit, Indian Prime Minister Modi halted for a two-day visit to Egypt. The visit was significant to the extent that some analysts went so far as to hail the visit as a potential game changer for bilateral ties. When highprofile visits are reciprocated, just as Modi visited Egypt after Egyptian President Abdel Fattah el-Sisi’s January visit to New Delhi when he was the chief guest at India’s 74th Republic Day celebrations, bilateral relations become meaningful, and more importantly, an environment of trust and mutual understanding is built around such a relationship. Incidentally, El-Sisi was the first Egyptian president who was accorded the honour of becoming the chief guest at India’s Republic Day celebrations.

Modi’s visit to Egypt was expected to enhance substantially India’s investment in the country, and in return an opportunity for Egypt to gain entry to the BRICS economic bloc. Significantly, Modi’s visit to Egypt was his first as prime minister and the first by any Indian prime minister since 1997. What el-Sisi’s India visit achieved in elevating bilateral relations to a strategic level, Modi’s visit to Egypt cemented it further. Moreover, Modi’s visit has defined the path ahead for the future of India-Egypt relations.

Regarding the visit Indian foreign ministry spokesperson Arindam Bagchi quite rightly pointed out that the visit will not only continue the momentum to the relationship between the two countries, but will also help it expand to new areas of trade and economic engagement. Nowadays none of the visits of a leader are looked upon as successful unless it has achieved something in terms of a trade or business deal. While on one hand Egypt has achieved in diversifying partnerships beyond the Western bloc, India has managed to strengthen its position as a representative of the Global South before the G20 meeting in September in New Delhi.

Since the days of the Non-aligned movement, of which India and Egypt were also the founding members in 1961, both the countries have close relations. The significance of India for Egypt can be gauzed from the fact that in recent years, el-Sisi has visited India thrice. Having realized India’s potential as an emerging economic power, Egypt has sought India’s investment in the country. India, on the other hand needs Egypt in order to look for more access to the Middle East and North Africa region.

While it is true that Egypt and India have had friendly relations historically, there is a greater need for both countries to seek renewed friendship and cooperation of each other. BRICS is one grouping where world’s significant economies with a lot of potential meet. Egypt wants to become its member and India also wants Egypt in BRICS to balance China in this organization. Also, with this visit to Egypt, Modi may have been able to send a message to the domestic audience in India that India and Egypt, the most powerful Arab country, have close relationship because Egypt realizes Modi does as much for the Muslims in India as he does for the Hindus or any other community.

From Egypt’s point of view, it would like to stabilize its position economically given the fact that it is going through a food supply crisis owing to the RussiaUkraine war. The foreign reserves are also low, which can be strengthened after Egypt trades with India. It is very important for Egypt to regain its lost position in the Arab world. For that trade relations with India will be beneficial for Cairo.

As for India, Cairo can serve as a gateway to major markets in both Europe and Africa. Moreover, India’s concern regarding China’s growing influence in Egypt is an apt one, as still China’s bilateral trade with Egypt is $15bn, which is double that of India’s $7.26bn in 2021-22. Therefore visits like that of both the leaders to each other’s country can pave the way for a better and stronger bilateral relations which will benefit both countries, in the long run and in the short run.

In that context Egyptian ambassador to India, Wael Mohamed Awad Hamed’s remark in calling the reciprocal visits “game-changers” is most appropriate and made in the right spirit.

Another of Modi’s important foreign trips was the recent visit to UAE after his visit to France for the Bastille Day celebrations there. Modi’s fifth visit to UAE as Prime Minister began on July 15. This visit was looked upon by many foreign policy experts as a significant transformation in India-UAE relations. Modi’s previous visit to UAE as Prime Minister was in 2015, which was incidentally the first visit to UAE by an Indian Prime Minister after 34 years.

Both Indian Prime Minister Modi and UAE President Sheikh Mohamed bin Zayed Al Nahyan are said to share a common vision of friendship and cooperation between both the countries. Modi’s first visit in 2015 to UAE had seen bilateral relations being elevated to the level of comprehensive strategic partnership. It is significant that both Modi and UAE President are in favour of bringing development and prosperity in the region. There have been rapid strides made in strong economic exchanges, in terms of trade and investments, people-to-people connects, and also sharing of views on many regional and international issues. Bilateral trade has increased to $85 billion in 2022-23, making UAE India's third-largest trading partner. UAE has also become India’s second largest country in terms of export. It is the only nation from the region which has offered to store strategic oil reserves in India. UAE has also built the first Hindu temple in Dubai, a symbol of friendship with India, and recognition of the aspirations of the Indian Diaspora.

Moreover, the Comprehensive Economic Partnership Agreement (CEPA) signed between both countries in 2022 has ushered in an era of tremendous increase in trade and economic partnership between India and UAE. CEPA has a target and it is to increase employment opportunities and bilateral trade in goods to US$100 billion in five years and trade in services up to US$15 billion. The agreements between India and UAE symbolize the trust and commitment both countries have in valuing each other’s friendship.