Indo-Egypt Trade Relations

[br]A very good relationship is being established between India and Egypt both in economic and political spheres from the very beginning during the non-aligned movement, which is considered as the land mark of the freedom struggle of India. The year 2002 was considered as year of India in Egypt by the Egyptian ministry of foreign trade for further enhancing the bilateral relationship. The agreements between the two countries is based upon the most favored nation clause.

[br]A very good relationship is being established between India and Egypt both in economic and political spheres from the very beginning during the non-aligned movement, which is considered as the land mark of the freedom struggle of India. The year 2002 was considered as year of India in Egypt by the Egyptian ministry of foreign trade for further enhancing the bilateral relationship. The agreements between the two countries is based upon the most favored nation clause.

According to the department of commerce and Industry in India, Indian exports to Egypt have touched $ 423.68 million in 2004 which is up by 15.29% and the imports from Egypt have reached $ 137.27 million in the same year which is up by 39.77%.

The main exportable items from India were Iron and steel, Jute yarn, Plastic and rubber, Chemicals and engineering goods.

[br]It is seen that making business in Egypt offers a large domestic market, a better infrastructure base, skilled main power etc. The general authority of foreign investments in Egypt, India is the twelveth largest investor in Egypt and it is predicted that in the end of the year 2005,the total investment of India in Egypt will cross $ 450 million in 43 business ventures. The Gas Authority of India Limited (GAIL) has planned to make an investment over $6 million in the gas distribution ventures in Fayoum and Cairo. The important sectors where the cooperation has increased are Information technology, Pharmaceuticals, chemicals, Fertilizers, Steel, Energy and agricultural equipments.

Indian companies have given a very good step in exploiting the business environment in Egypt. The oberoi group operates hotels in Egypt. The companies like Tata motors, Asian Paints, Ranbaxy, Ashok Leyland, NIIT, GAIL, HDFC, Dabur India Ltd, Unit trust of India, Kirloskar Brothers, Thappar Group and others are considered as the major investors in the land of Egypt.