Prime Minister Narendra Modi, who’s presently on a state go to to the USA will likely be visiting Egypt for 2 days on June 24, on the invitation of Abdul Fattah El Sisi, president of the Arab Republic of Egypt.
Egypt is positioning itself as a really perfect funding vacation spot for Indian companies by way of its Suez Canal area. Egypt’s improvement axis overlaying business and logistics areas will likely be displayed throughout Prime Minister Narendra Modi’s first go to to Cairo.
Throughout Prime Minister Narendra Modi’s go to to the nation from 24 to 25 June, which would be the first by an Indian Prime Minister since 1997, Egypt’s announcement that it’ll provide a devoted slot for India within the Suez Canal Financial ZoneSCEZ is predicted to be a serious matter of debate.
As an necessary funding vacation spot for Indian enterprises, Egypt has put the Suez Canal area in its sights.
The Suez Canal, wherein Egypt controls 20 % of world container site visitors, is likely one of the main strategic choke factors on the world’s maritime route connecting the Mediterranean Sea with the Purple Sea and the Indian Ocean.
There’s additionally an excessive amount of significance in Indian commerce with the Suez Canal. There are a further 500,000 barrels per day of crude oil delivered and carried by way of the Canal to India from the general 4.8 million barrels per day.
Numerous industrial and logistical zones are positioned on the event axis of the Suez Canal area, SCZONE. By linking the Purple and Mediterranean seas by way of mega industrial and logistical zones, the SCZONE is a part of Egypt’s plan to turn out to be a world logistics and industrial heart. With six strategically positioned maritime ports between Africa, the Center East, and Europe, it’s a 460-kilometer impartial, rising worldwide industrial hub.
Not too long ago, an Indian delegation led by the President of the Suez Canal Financial Zone Walid Gamal Eldin attended discussions on Egypt’s financial engagement, particularly potential investments in numerous totally different sectors reminiscent of Renewable Power, Inexperienced Hydrogen, and Infrastructure. Through the go to to New Delhi by Egyptian President Abdel Fattah el Sisi in January, India was invited to offer full help for establishing a serious business presence in S.C.Z.
Chatting with a gathering of main Indian businessmen, Sisi mentioned that the area across the Suez Canal held nice potential for companies wishing to use Egypt’s strategically positioned location.
With the intention to begin building of the deliberate inexperienced hydrogen mission in Sokhna in early 2024, SCZONE just lately signed a framework settlement with ACME, an Indian firm.
Rising commerce and funding linkages
It comes at a time when India can also be in search of methods to develop its relationship with Egypt, an necessary political participant in each the Center East and Africa.
The federal government of Egypt mentioned it might welcome India’s investments, primarily within the space of environmentally pleasant hydrogen manufacturing.
Vital initiatives have already been undertaken by India’s Personal Enterprises in Egypt.
Officers with the SCZone mentioned Indian producers within the energy, metal, chemical, and agricultural gear sectors had expressed their curiosity in establishing initiatives in Egypt.
In accordance with media experiences, whereas India invested $3.15 billion final yr in Egypt, it may have invested as a lot as $700 million over the subsequent few years.
What’s the significance of Egypt?
Within the first few many years following our independence, India has had an distinctive relationship with a rustic whose inhabitants is almost 110 million and its location lies between Africa and Asia.
Over the previous two years, each international locations have been working collectively at important junctures. Throughout his presidency in India, Prime Minister Narendra Modi had labored in the direction of strengthening relations with Egypt even inviting it to the G20 Summit as a particular visitor. The visits of Defence Minister Rajnath Singh and Exterior Affairs Minister Dr. S Jaishankar to Cairo in October final yr have laid a strong basis for the Prime Minister’s assembly in Cairo.