Al Alam Al Youm P.10 (22-4-2008)

"Business Al Youm" monitors Egypt knocking on India's door

By: Naglaa Al Refai (from New Delhi)

India's promising economic capabilities and its emerging status in the world economy prompted Eng. Rashid Mohammed Rashid, the Egyptian Minister of Trade and Industry, to pay a 3-day visit to India in order to pave the way for the Egyptian commodities to have access to the Indian market and attract more Indian investments to Egypt. During his successful visit to India, Eng. Rashid explored several files of cooperation between the Egyptian and Indian sides. During their talks, the officials of the two countries agreed on working together to remove any obstacles and settle any problems that might face flow of investments and trade exchange between their countries. They also underscored the timeless friendship ties between the two countries since 1950s and 1960s as well as the shared cultural and intellectual values, which can give an impetus to bilateral cooperation.

At the beginning of his visit, Eng. Rashid discussed with the Indian officials and businessmen the establishment of a free trade zone between the two countries, which will be of mutual benefits. The Egyptian Minister said that Egypt is keen to lay down frameworks of cooperation with India in view of the massive breakthrough and progress achieved by the countries of East Asia at the past few years.

The target plan, which the officials of the two countries are working on at the present time, addresses three points: doubling the volume of trade exchange, increasing the flow of Indian investments into Egypt and promoting bilateral cooperation in management and technical fields.

Given the serious desire of the Indian businessmen to have investments in Egypt, Eng. Rashid told his accompanying Egyptian businessmen to make use of this point and establish partnership with the Indian companies, through which they can target a third country.

The Minister draw the attention of the Egyptian businessmen to the contradictions in India, as it, in spite of the clear poor infrastructure, managed to achieve marvelous success in different fields. Today, India can be truly described as one of the major IT hubs in the world. India has also managed to positively invest its huge human resources through sharpening their technical and managerial skills. India today has a huge pool of trained, highly qualified, skillful and technical manpower, which positively contribute to its economic development.

Eng. Rashid told the Indian side that the Egyptian plants need about 1000 Indian experts in different fields to help promoting performance. The Indian officials said that the matter would be reviewed by the Indian Cabinet and decision would be taken within a month or two.

At the same time, Egypt and India signed a protocol of cooperation that covers the fields of trade, investments and training. It has also been agreed to form a working group that would be entrusted with preparing a comprehensive feasible study and submit it to the Ministers of Trade in the two countries within two months. It should also include recommendations on the means to improve trade exchange between the two sides, identify available investment opportunities and transfer of technology in the industrial field.

The Egyptian Minister also discussed the best means through which Egypt can make use of the Indian government's programme, which targets the markets of African nations. It was proposed that Egypt and India can have joint cooperation in infrastructure projects in other African countries. In this context, Eng. Rashid said that the Egyptian and Indian governments have agreed to offer all facilities, which can enable businessmen of the two countries to have access to the market of the other.

The Embassy of Egypt in India revealed that Eng. Rashid reviewed a number of projects, which were proposed by some major Indian companies to be established in Egypt with investments of about US$ 20 or 23 billion.
 

On top of these proposed projects are petrochemical complex by Reliance Company with investments of more than US$ 11 billion, steel and iron complex by TATA Group with investments of US$ 2 billion and plant for production of phosphoric acid in Aswan by EFFICO with total investments of US$ 526 million.

Eng. Rashid said that he received a request for establishing a plant for chemicals in Qena with investments of US$ 400 million, whose production would be entirely exported abroad.  He indicated that the Indian Oberoi Group wants to establish a number of travel agencies in Egypt in order to double Indian tourist arrivals to Egypt. Rashid added that the annual number of Indian tourists traveling to the world countries every year is 60 million and Egypt wants to attract at least 5% of this figure (about 3 million).

After reviewing these statements by the Egyptian Minister of Trade and Industry, I believe that long-awaited visit by President Mubarak to India in order to receive Jawaharlal Nehru Award for International Understanding and Peace would undoubtedly give a strong momentum to the Egyptian-Indian relations.

I also believe that the two countries should speed up their talks in order to finalize this Preferential Trade Agreement to enhance trade exchange and increase exports. Similarly, the officials of the two countries should finalize the agreement on Avoidance of Double Taxation to help flow of the commodities of each side to the other's market.

At the same time, flights operated between the two countries should be increased, as there are only three flights operated every week from Cairo to Bombay. In this context, the two sides should consider resuming direct flights from Cairo to Delhi.

To translate all these matters into a reality on the ground, the officials of the two countries should exert more efforts, join hands and increase exchange of bilateral visits.

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