Egypt saves billions of dollars thanks to India’s decision

India is considering an offer to swap commodities such as fertilizer and gas with Egypt as part of a broader deal that would see New Delhi provide Cairo with a multi-billion dollar credit line.

The deal is likely to be announced later this month during Indian Prime Minister Narendra Modi’s first visit to Cairo. The deal will allow Egypt to make purchases in Indian rupees, and barter is being discussed as a way to pay off that debt by selling Egyptian goods that could benefit India.

“Negotiations and discussions are currently underway on the use of local currencies in trade exchanges with countries including India,” Minister of Supply and Domestic Trade Ali Moseli told Reuters, adding: “Which countries will be involved and in what commodities? it is still under discussion.”

India is Egypt’s third largest trading partner as India’s experience in solar energy has proven to be beneficial, and this has been made evident by the Egyptian-Indian partnership to build the Benban Solar Farm in Aswan, which is currently the largest group of solar power plants in the world.

On an economic and trade level, cooperation between the two countries has experienced an unprecedented boom in recent times as the Indian Ambassador to Cairo confirmed that domestic trade volume has reached a record high of 75% in 2021-2022, reaching $7.26 billion and continuing to grow in 2022. -2023

The Indian Ambassador to Cairo revealed that around 50 Indian companies have huge investments in Egypt totaling over $3.2 billion across multiple sectors including chemicals, energy, automobiles, retail, apparel, agriculture and others, noting that these companies together provide direct employment opportunities to nearly 38,000 Egyptians.

The Ambassador said that many of these companies are planning to expand their investments with a total investment of 800 million US dollars in Egypt, and many Indian companies have shown interest in developing green hydrogen and green ammonia projects in Egypt, and he said that the three leading Indian companies have signed memorandums of understanding with the Egyptian government worth $18 billion.

The Ambassador reviewed the efforts made by the Embassy in Cairo to promote trade, as it stepped up institutional arrangements and held meetings of the fifth session of the “Joint India-Egyptian Trade Committee” and the fifth session of the “Joint Business Council” in July 2022, and as a result of these efforts since mid-2021, more than 14 trade delegations representing about 600 Indian companies have visited Egypt.

It is worth noting that over the recent period, Egyptian-Indian relations have witnessed great development in all political, economic, scientific and cultural fields, as both sides seek to strengthen bilateral relations through the intensification of high-level visits between the two countries.

Source: Egyptian site “Echo of the Country”.

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