Al Ahram Al Iktisadi, p.62, (21/5/2007)

Trade is not the only means for boosting relations

Technology and human resources are principal elements of the Egyptian-Indian ties

By: Nazira Al Effendi

If we addressed the Egyptian-Indian relations we will find out that they are more deep-rooted than all press releases and trade statistics.

The depth of relations between the two countries is represented in the series of official visits exchanged by the two parties in the fields of politics, tourism, oil, and telecommunications. Egypt has recently received the Indian Minister of Petroleum and Natural Gas.

Then Essar and TATA, two Indian companies, announced their intension to invest $ 5 billion in the fields of steel and oil industries in Egypt. An oil refinery and steel plant will be established together with pipeline and gas distribution activities of the Indian companies in the Suez Gulf region.

The Confederation of Indian Industries also declared that it would organize an exhibition in Egypt next November. The Indian Trade Promotion Organisation with all its sectors including pharmaceuticals, cosmetics, tea and textiles participated in Cairo International Fair.

These are the most salient developments that made us read the file of the Egyptian-Indian relations. But is it sufficient that our trade exchange reached $ 1.7 billion in 2006? The Egyptian exports to India reached $ 1,392 billion, 95% of which are oil products and natural gas. India's exports are estimated at $ 354 million. This means that the balance of trade is in our favor.

As for the Indian investments in Egypt, they reached $ 400 million. They are expected to increase with the projects of Essar and TATA. But is this enough? Is the volume of trade up to the level of Egyptian-Indian historical relations?

The answer is no. Egypt is now looking for diversifying its exports and attracting more investments.

There is also a competition between China and India regarding reaching higher economic growth rate. Yet, they cooperate with each other.

But what are the areas through which we can boost our ties with India? Technology, human resources and technical training are among the main fields.

Figures indicated that there will be expected increase in the revenues of Indian software during the current fiscal year 2006/2007 to reach $ 31 billion. This represents a growth rate of 32.6% compared to $ 4.8 billion in 1997/1998.

We should also see how the Egyptian cinema could benefit from the Indian movie industry that is competing Hollywood.

India managed to translate the statement of "the more the population is, the stronger the country will be" into action. They look at the people as an asset that gives higher productivity.

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