Of late, India’s choice of the guest at the Republic Day function has also become a significant reflection of its foreign policy priorities. In 2015, US President Barack Obama’s presence signalled the growing warmth between India and US, whereas France’s then-President Francois Hollande’s visit the next year for Republic Day reflected the heightened cooperation between India and France in the Indo-Pacific region. This time after a gap of two years due to the Covid-19 pandemic, India is all set to host the President of Egypt, Abdel Fattah el-Sisi, for its annual Republic Day parade. Despite India’s ties with Egypt going back all the way to the 1950s with both countries being founding partners of the Non-Aligned Movement, it is the first time that an Egyptian head of state is gracing this occasion. Egypt is also the second African state to get an invite from India for the Republic Day, with South Africa being the first one that too only recently in 2019.
The significance of this move can’t be understood without taking into account Egypt’s geographical location. Situated at the North Eastern tip of the African continent, Egypt is the largest Arab country that traverses across two important regions of West Asia and Africa. It is also located at the crucial juncture of two key waterways such as the Red Sea and the Mediterranean Sea interconnected with the very strategically significant Suez Canal. This canal is the busiest artificial shipment route in the world and the only cost-effective trading route that links Asia with Europe and beyond. The other route is through the Cape of Good Hope which is both costly and much more time-consuming than the Suez Canal route.
India is the largest crude oil importer through the Suez Canal and also the sixth largest exporter through this route. A week-long blockage in Suez Canal in 2021 had exposed India’s vulnerable dependence on this waterway when many ships remained stuck for days. Currently, Suez Canal has assumed another important dimension for India. Egypt has revived its Suez Canal Economic Zone project an industrial development corridor which has the potential to transform the region into a mega manufacturing hub and provide access to a market of 1.4 billion people, almost the size of India’s total population. India has also invested around $8 billion in the SCEZ to set up a plant to produce 20,000 tonnes of green hydrogen. It is the largest Indian investment in Egypt till date. As of now, more than 50 Indian companies are operating in Egypt with a total Indian investment of $3.5 billion.
As India looks forward to becoming a global manufacturing hub, its dependence on waterways around Egypt can’t be overstated. Besides, Egypt itself is a valuable market for Indian products with its total market size of 90 million. India-Egypt trade reached a historic high of $7 billion in 2022 with a great potential to chase an even higher figure in the years to come. Egypt has the potential to serve as India’s opening to the markets in Northern and Western Africa which according to various estimates can be easily pegged at 1,400 million. This has significant value for India’s pharmaceutical sector which can use Egypt as a gateway to North Africa as Egypt is eager to host Indian pharmaceutical majors in the country. Similar cooperation is also possible in the defence sector where Egypt is proposing joint manufacturing of defence equipment. India’s cooperation with Egypt in the defence sector can provide it great strategic leverage in West Asia and Africa. India’s defence cooperation with Egypt goes back to the 1960s when both countries together manufactured the Helwan-300 fighter jet. In 2023, Egypt is looking to acquire LCA Tejas from India with India even considering a maintenance facility in Egypt to attract potential buyers in Africa and West Asia.
The visit of President Sisi to India couldn’t have come at a more opportune time. Under the leadership of PM Modi, India is pursuing a multi-aligned foreign policy by chasing its self-interest through multiple partnerships at various levels across the world. The last time India and Egypt were this closer was during the non-aligned movement. With the end of the Cold War, ties between the two countries had frosted owing to lack of a strategic clarity regarding outcomes from their relationship. However, as India becomes the most populous country, the fifth largest economy with an ambition to become a leading power, the strength of its relations with other powers will determine the future of its status on the global chessboard. Here a middle power like Egypt can be a great partner. After all, both India and Egypt are the two oldest civilisations of the world.
The author is a PhD in International Relations from the Department of International Relations, South Asian University. Her research focuses on political economy of South Asia and regional integration. The views expressed in this article are those of the author and do not represent the stand of this publication.
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