India and Egypt elevated their relations to a “Strategic Partnership” during Egyptian President Abdel Fattah El-Sisi’s recent visit to New Delhi. Sisi, the first Egyptian chief guest to grace India’s Republic Day festivities, met with Indian PM Narendra Modi, President Droupadi Murmu, External Affairs Minister S. Jaishankar, and other top-level political and business delegations.
A joint statement noted that Modi and El-Sisi decided to upgrade relations to a “‘Strategic Partnership’ covering political, security, defence, energy, and economic areas.”
“By doing so, the two sides seek to maximise the common interests and exchange support in a bid to overcome the difficulties caused by various consecutive crises and challenges the world is facing,” the statement emphasised.
What are these shared interests and challenges?
1) Russia-Ukraine War: Russia’s invasion of Ukraine on 24 February wreaked havoc on Egypt’s economy, especially its agricultural sector. Given that Egypt is the world’s largest wheat importer and depends on both Russia and Ukraine for over 83% of its wheat supplies, the blockade of millions of tonnes of Ukrainian wheat and sanctions on Russian trade severely affected the Middle Eastern country.
As bread is a staple food for Egyptians, the lack of wheat has caused a rise in basic food prices and contributed to soaring inflation. In May, authorities warned that Egypt’s wheat reserves would only last four months.
Against this backdrop, Cairo has considered alternatives, including importing wheat from other major producers like India. Egyptian officials have even visited India and approved New Delhi as a major supplier of wheat, signing a deal to import around one million tonnes of Indian wheat.
While India accounts for 14% of global wheat production, its share in the world market is only 3% as most of India’s wheat is used for domestic purposes. Given that Indian wheat stocks are three times the mandatory limit of 7.6 million tonnes, New Delhi can easily afford to fill the lacuna left by Kyiv and Moscow.
2) Energy: While Egypt only accounts for around 2% of India’s crude oil imports and a small amount of its natural gas imports, the recent discoveries of gas fields in the eastern Mediterranean could provide India with a major option to procure natural gas, helping in the development of these fields. Moreover, the discoveries of several gas fields off the coasts of Indian partners, such as Israel, Cyprus, and Greece, could improve India’s participation.
Renewable energy is another area of cooperation as Egypt is one of the richest solar and wind energy countries. Egypt provides major opportunities given India’s push to become a leading renewable energy producer. In fact, El-Sisi met with a delegation from ReNew Power, one of India’s leading renewable energy producers, during his recent visit to New Delhi.
3) Infrastructure: As Egypt discovers more natural gas fields in the Mediterranean, its need for transport and trade infrastructure will increase. India has been keen to invest in, and develop, infrastructure in the region. Earlier this month, Indian company Adani Group purchased a 70% stake in Israel’s Haifa Port in the Mediterranean for $1.5 billion.
El-Sisi met with Adani Group Chairman Gautam Adani in New Delhi on Thursday to discuss the development of Egyptian ports in the Mediterranean, Red Sea, and the Gulf of Suez.
India’s increased interest in the Mediterranean could possibly be due to China’s increasing activity in the region. Beijing has already expressed interest in developing Egyptian ports in the Mediterranean and bringing the region into the ambit of the Belt and Road Initiative.
4) Defence: Egypt is the third-largest arms importer globally and procures weapons from several countries, including the US, Russia, China, and India. Moreover, Cairo is keen on diversifying its arms suppliers to avoid excessive dependency on any one country. For instance, the US has threatened to curb arms supplies to Egypt over human rights violations.
In this scenario, Egypt has sought a diverse portfolio of suppliers, including India, and shown interest in purchasing the Akash missile defence system. Last year, Cairo signed a defence MoU with India on weapons production. Given India’s emphasis on developing an indigenous arms industry, Egypt’s interest could boost Indian manufacturers and New Delhi’s ‘Make in India’ initiative.
The Turkey Question
India and Egypt have a common adversary in Turkey, which could be a major reason why ties were elevated to a strategic level.
India has recently expressed its support to Cyprus in the latter’s dispute with Turkey, mainly due to Ankara backing Islamabad over the Kashmir issue. India has even voted against Turkey in the UN Security Council and has agreed to supply Turkish rival Armenia with advanced weapons systems.
Egypt and Turkey have been fighting over energy reserves in the Mediterranean for years, with Cairo often accusing Ankara of violating its sovereignty. Egypt has responded to Turkey’s moves by signing energy deals with the latter’s arch-enemy, Greece.
What Next
India and Egypt have a lot of avenues for increasing cooperation. Both countries have signed separate security deals with the US, UAE, and Israel, and with the expansion of relations to a “Strategic Partnership,” the chances of wider regional collaboration remain higher than ever.
Statecraft Explains | Why India and Egypt Elevated Ties to a “Strategic Partnership”
A joint statement notes that the decision to elevate ties was due to common interests and challenges faced by the two countries. What are these interests and challenges?
January 28, 2023
IMAGE SOURCE: T. NARAYAN/BLOOMBERGIndian PM Narendra Modi (R) greets Egyptian President Abdel-Fattah El-Sisi, in New Delhi, India, on 25 Jan.