Al Ahram Al Massaai, P.4 (3-6-2007)

In his statements to "Al Ahram Al Massaai", the Ambassador of Egypt to India:

Trade exchange between Cairo and New Delhi increased by 146% in six months only

Interviewed by Tarek Al Senoti (in New Delhi):

Dr. Mohamed Hegazi, Ambassador of Egypt to India stressed that the Egyptian-Indian relations are politically and economically distinguished. Bilateral relations witnessed last year remarkable developments in the political, economic, scientific and cultural fields, given the keenness of the Egyptian political leadership on enhancing relations with India through intensifying high-level ministerial visits under Egypt's "Look East" policy, which aims at strengthening Egypt's relations with the major Asian powers, such as China, Japan and India.

With regard to the meetings of the Indo-Egyptian Joint Commission, which were recently held in New Delhi, Ambassador Hegazi said, "After being suspended for six years, the meetings of the Indo-Egyptian Joint Commission were held in New Delhi and co-chaired by Foreign Minister Mr. Ahmed Abul Gheit and his Indian counterpart Mr. Pranab Mukherjee. The meetings offered
a good opportunity to draw up a detailed strategy for future bilateral relations between the two countries in all walks of life, including trade, investments, civil aviation, tourism, services, electricity, power, petroleum, mining, health, population, security, judiciary, science and culture. The meetings were attended by Egyptian officials representing 14 ministries. So, the Indian side felt that there is a strong political will on part of Egypt to develop relations with India in all sectors.

Pertaining to economic cooperation between the two countries,
the Egyptian Ambassador to India Dr. Mohamed Hegazi said, "Trade exchange between Cairo and New Delhi witnessed remarkable increase during the first half of the year 2006. Foreign trade statistics issued by the Indian Ministry of Commerce and Industry reflected a noticeable increase by 146% in bilateral trade exchange, which registered during this period US$ 875.1 million compared to US$ 356 million over the same period last year."

"This surge in the volume of bilateral trade exchange is due to intensive efforts and fruitful cooperation between the two sides," the Egyptian Ambassador added. 

He indicated that trade exchange between the two countries would reach about US$ 2 billion by the end of this year with the balance of trade in favour of Egypt. He confirmed that both public and private sectors in Egypt realize
the importance of the huge Indian market (population of one billion).

He highlighted that the Indian investments in Egypt in services or production sectors are very important. India owns and has shares in ventures, whose total capitals are estimated at about US$ 850.3 million. These ventures are basically working in sectors, such as spinning & weaving, animal production, storage of various commodities, petroleum, chemicals and financial services.

He said that India's share in the capitals of these joint ventures in Egypt is estimated at about 135.5 million, while the total investments of these joint ventures (73 joint ventures) are estimated at about US$ 568 million.

He added that the volume of Indian investments are expected to hit US$ 1.6 billion by the year 2007 after the implementation of other projects, the most important of which are a plant for producing phosphoric acid and ammonia, plant for liquefied gas and a plant for producing urea and ammonia.

Concerning the Egyptian exports to India, Ambassador Mohamed Hegazi said, "The Egyptian unconventional export items to India witnessed unprecedented increase, as it registered during the first half of the year 2006 about US$ 501.2 million compared to about US$ 87.11 million during the same period last year with an increase of 475.5%. On the other hand, Indian imports from Egypt during the first half of the year 2006 increased by 39%, as they amounted to about 373.9 million compared to about US$ 268.9 million during the same period in the year 2005. So, the balance of trade exchange during the first half of the year 2006 is in favour of Egypt by US$ 127.3 million, while it was in favour of India by US$ 181.8 million during the same period in
the year 2005.

Regarding encouragement of investments between the two countries, the Egyptian Ambassador to India said, " The coming period will witness intensive efforts for encouraging and urging Egyptian businessmen to visit India in group or individual promoting missions to make the Indian consumers well informed of the high quality Egyptian commodities and exports and their competitiveness in terms of price and quality compared to similar products imported from other countries."

He added that the Egyptian-Indian Joint Business Council, which was established in 1997, would be activated. The participation of Egyptian organizations and bodies in Indian exhibitions and other functions will be increased.

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