Al Ahram (20-4-2008)

72 hours in India: roadmap for Egyptian-Indian relations and a free trade zone to be established soon

By: Raafat Amin – India

The Minister of Trade and Industry Rashid Mohammed Rashid and the accompanying delegation paid a 72-hour visit to India. During the visit, we travelled from New Delhi, the capital city, to Mumbai, the commercial capital. Although the visit was short, its results were great. Through his continuous contacts with officials in the Indian government, especially decision-makers, Rashid coordinated with them on global economy issues. During this short visit, a cooperation protocol, or a roadmap, to organise trade and investment relations between the two countries was reached. The protocol allows the two countries to benefit from the potential of each other, establish a free trade zone by the end of the year, and establish a special Indian industrial zone probably in the 10^th of Ramadan city over an area of 2 million square meters. Rashid realizes the changes and developments currently taking place in the Indian economy. However, he was keen at the beginning of his visit on holding open meetings with the delegation members, the businessmen who have interests in the Indian market. He listened to them and knew their needs and the obstacles facing them while dealing with the Indian market. He said to them that a negotiation strategy with the Indian side is set according to the needs.

Before listening to them, he shared with them his experience in the Indian market asserting that India is on its way to become a world major economic power within the next 10 years. The Indian economy, he said, seeks to make the best use of manpower and focuses on some sectors such as the IT sector. Egypt and India have already had cooperation on this field. During his meeting with Egyptian businessmen, He said he had already received several offers from major Indian companies for establishing investment projects in Egypt. Rashid was keen on attending the meetings organised by CII, whether in New Delhi or Mumbai, in which a large number of Indian company chairmen and representatives participated along with their Egyptian counterparts. The Minister said to Indian businessmen that the Egyptian-Indian relations aim at deepening trade and investment in view of the historical and cultural links between Egypt and India. He pointed out that Egypt is currently interested in developing human resources in various fields. The Indian side agreed on an Egyptian proposal for establishing an Indian industrial zone in the 10^th of Ramadan city over an area of 2 million square meters. This zone will be allocated for labour-intensive industries, like pharmaceuticals, engineering, food and car component industries.

The discussions held by Rashid and the accompanying delegation in New Delhi and Mumbai led to signing a cooperation protocol between the two countries aiming at setting a new comprehensive vision for bilateral relations. According to the protocol, a period of two months will be given to experts and specialists from both countries to set their visions regarding cooperation methods between the two countries over the next period. The two ministers have already set a framework for the work of this committee including considering the feasibility of establishing a free trade zone between Egypt and India, determining the potential of trade and investment between businessmen from the two countries, considering the means of removing all obstacles and restraints on trade and providing required training.

*****