Al Souq Al Arabia, p.6, (17/8/2008)

 

The Ambassador in India in Cairo:

The Ambassador of India in Cairo held a press conference last year on the occastion of the celebration of the 61st anniversary of India's independence Day.

 

He said that bilateral relations between India and Egypt, have witnessed a significant expansion in recent years. He begin with the high-level ministerial visits exchanged between the two countries in the first half of the year 2008. Three important ministerial visits were paid by Egyptian Ministers to India: the Minister of Trade and Industry, the Minister of Agriculture and Land Reclamation and Her Excellency the Minister of International Cooperation, who attended India-Africa Forum Summit in India in April 2008.

 

On the Indian side, Minister of Home Affairs visited Egypt in January 2008 and this was followed by a visit by the Indian Minister of Textiles in the same month. Also, the Indian Minister of State for Power and Commerce visited Egypt in May 2008 and attended the World Economic Forum on the Middle East in Sharm El Sheikh. The Indian Minister of State for External Affairs visited Egypt in June 2008, as he attended the African Union Summit as observer. Also, the Indian Minister of External Affairs visited Egypt during the period from 1-3 July, 2008.

 

As far as bilateral economic and commercial relations are concerned, he said that these relations have witnessed remarkable growth during the last period, particularly during the period from April 2007 to March 2008. Bilateral trade between India and Egypt registered US$ 2.54 billion out of which US$ 1.89 billion for petroleum exports from Egypt to India, while the Indian exports to Egypt during the same period amounted to US$ 582 million. The Egyptian non-petroleum exports to India reached US$ 125 million.

 

The Indian investments in Egypt are currently around US$ 750 million and they are expected to reach US$ 2 billion within the next two years.

 

People-to-people contacts have remarkably developed during the last period, as the number of Indian tourists, who visited Egypt in 2007 reached 82,000 with a 35% increase compared to the year 2006 in which 61,000 Indian tourists visited Egypt.

 

Both India and Egypt closely cooperate in the UN and its different agencies, the International Monetary Fund (IMF), the World Bank and other international multilateral forums. Recently, the two countries cooperated during the latest round of the talks of the World Trade Organization (WTO)."

 

In his reply to a question on the low figure of Egyptian non-petroleum exports to India, the Indian investments in Egypt and whether they are focused in the field of petrochemicals and natural gas and whether India will establish investments in Egypt in the field of vehicles and IT, the Indian Ambassador said, " If we look at the trend of the Egyptian non-petroleum exports to India, we will find that it is moving upwards and the basket of the Egyptian exports to India is diversified.

 

As for the Indian investments in Egypt, he said that that they are focused in the field of petrochemicals and natural gas, as we find that a new acrylic fibre plant - Alexandria Fibre Co. was set up by the Aditya Birla Group. If we look at the Indian investments in Egypt over the past 10-15 years, during which Alexandria Carbon Black Company was established, we will find out that other Indian investments were established in different fields. Dabur India Ltd. has established a facility for the production of its cosmetics and hair care line under its brand name in Egypt and the Middle East. Marico, an Indian consumer goods company, has acquired two hair care brands from Egypt’s Ready Group: Haircode and Fiancée. The Indian Sanmar Group completed acquisition of a unit of Trust Chemicals in Port Said. So, we can find that the Indian investments are covering different fields and not confined to a certain sector. However, investors always look for the privileges, incentives and competitive price offered by other sectors and if they find this in any sector, they will go for it. I would like also to mention that the establishment of
a refinery might take 5 to 8 years, while the establishment of any plant in any other field will take shorter time. The decision in the end is left for investors.

 

He also added that two of the major Indian IT companies have laid down two IT solutions Centres in Egypt and this will be of beneficial impact on the Indo-Egyptian relations.

 

In his reply to a question on India's strategy towards the Middle East and the Indo-Arab relations, the Indian Ambassador said, "We have repeatedly reiterated in several occasions that India has excellent relations with the Arab countries. Over the past 60 years, India has been supporting the Arab causes and the Palestinian cause. India has called for the establishment of an independent Palestinian state through peaceful negotiation between the two parties. You can also check the pattern of India's voting in the UN agencies and UN Security Council regarding the resolutions related to the Arab issues and you will find that India's stance has never been changed till today.

 

In his answer to a question on the Indian space programme, the launch of the Indian Chandrian-I and the possibility of having cooperation between India and Egypt in the peaceful applications of nuclear energy, Ambassador said, " It is true that the Indian space programme has taken wide strides, but this is due to the tremendous efforts and commitment to work over the past fifty years. It is not that this programme reached this level over night. India is proud that it is the only country, apart from the P-5, that has an independent space programme. As for Chandrian-I, we are looking for its launch, which will be by the end of this year.

 

As for cooperation between India and Egypt in the peaceful applications of nuclear energy, I would like to say that there is an existing agreement between the two countries regarding this. We do cooperate together under this agreement and in accordance with the international obligations of the two countries."

 

In his reply to a question on the idea of establishing a special industrial zone for Indian companies in Egypt similar to those established here by other countries and the problems recently raised over meat imports from India, Ambassador said, "This idea is for the future. As for the past and present status, I can tell this the Indian investments are established in different parts of Egypt, such as Alexandria, Ismailia, Port Said and Cairo. So, it is very difficult to bring them under one umbrella given several reasons, the most important of which is the availability of the materials and services (electricity, metals and raw materials) needed for their projects. During the latest visit by the Egyptian Minister of Trade and Industry Eng. Rashid Mohamed Rashid to India, he proposed this to the Indian side. The Indian government and both public and private sectors are discussing the details of this idea and the sectors, which can have investments in such a proposed zone. So, it is not ruled out matter, as privileges are being discussed. Such matters need good preparations and discussions.

 

Regarding the Indian meat exports to Egypt, I would like to confirm that the claims and allegations, which are published in press reports by a certain newspaper, are totally baseless and untrue. We have received assurances from the Indian meat authorities in which they said that the Indian meat is of high quality and meeting the specifications. With the advent of the holy month of Ramadan, more measures are being taken by the Indian meat exports companies to ensure providing high-quality meat to the Egyptian market with enough quantities."

 

In his response to a question on the Indian experience in dealing with the problems of overpopulation and governmental subsidies, Ambassador said, "It is true that India is the second largest country in the world in terms of population and we have been facing the problem of overpopulation since years. However, each country has its own way in handling this problem. Apart from the family planning programme, we realized in India that the solution can be reached through two methods: education and economic growth. So, quality of education should be ensured, especially for girls. Also, women should be empowered and this will make family planning easier and effective. However, the problem is not expected to be settled within two years or so, because such strategies could take from 15 to 40 years or two or three generations to feel their results.

 

Both India and Egypt face the problem of ensuring the delivery of subsidy to the targeted sections and the real needy. None of the developing countries has reached the magic means through which they can do this. But the efforts, which are exerted by the governments, can not be felt overnight and it requires sometime so that common citizens can feel."

 

In reply to a question about India's stance towards the Iranian nuclear file and press reports on the possibility of directing a strike against Iran, the Indian Ambassador said, "India has clearly announced its stance through the spokesman of the Indian External Affairs Ministry and also by the Indian PM Dr. Manmohan Singh, as we believe that the ideal solution for this matter should come up through peaceful negotiations and dialogue. The Indian government is against any attacks on Iran, because it is in our neighbourhood and any thing like this will not definitely be in India's interest."

 

In reply to a question about India's stance regarding the UN reforms and the expansion of the membership of the UN Security Council, Ambassador said, "This has been an item on the agenda of the UN General Assembly since about 1995 (about 13 or 15 years ago). A Working Group has been established to discuss this matter on annual basis. Last year, India and other countries tabled a resolution, which requests holding talks among the governments of the world countries on this topic so that a final formula can be reached. India has expressed its desire to shoulder the responsibility of getting the permanent membership of the Security Council and the same for Egypt as well. In this regard, India is supporting the African stance and we are waiting for the decision to be taken by the African Union with regard to the African countries to be nominated for getting permanent seats in the Security Council.