In a bold move to deepen economic relations, the Egyptian-Indian Business Council has launched a sweeping investment initiative for 2027, targeting a dramatic increase in Indian investment in Egypt to USD 5 billion (EGP 243.1 billion). This plan marks a pivotal step in reinforcing the economic partnership between the two countries.
Egypt aims to increase Indian investments by at least 30 percent this year, driven by strong Indian interest in the Egyptian market, Yahya Al-Wathiq Billah, head of the Egyptian Commercial Service Authority stated.
“The drive for positive change is integral to the nation’s strategy for overcoming the economic challenges it has encountered in recent years,” Egypt’s Minister of Investment and Foreign Trade, Hassan El-Khatib, stated.
He added that there is a clear vision to attract more investments by facilitating the investment process and adopting strong financial policies.
There has been a notable recent expansion and diversification of economic ties between India and Egypt. India’s External Affairs Minister, S. Jaishankar, highlighted that over 50 Indian firms have made substantial investments across several Egyptian industries, with pharmaceuticals, electronics, and green energy standing out as primary areas of interest.
Jaishankar also conveyed a positive outlook regarding the Egyptian market’s potential for Indian agro-exports, with a particular emphasis on wheat.
Working closely, the Embassy of India in Cairo, in collaboration with the Confederation of Indian Industry (CII), established the India Business Forum (IBF) in Egypt in 2012, spearheaded by the Ambassador of India in Egypt to facilitate exchanging information and addressing pressing concerns. Another organization that aims to foster economic and trade relations between the two countries is the Egyptian-Indian Business Council.
As of 2023, Indian investments in Egypt have reached USD 3.2 billion (EGP 155.6 billion), distributed across 52 projects in food industries, chemicals, and tourism sectors.
Currently, there are over 450 Indian companies in Egypt, particularly in the chemical and fertilizer industries, pharmaceuticals, as well as leather, glass, automotive industries, and agriculture-based industries.
The companies boast a cumulative investment surpassing USD 3.15 billion (EGP 153.1 billion). Of these, nearly half operate as joint ventures or wholly owned Indian subsidiaries, while the remainder conduct their business through representative offices.
Notable Indian investments in Egypt include TCI Sanmar, with an impressive valuation of USD 1.5 billion (EGP 153.1 billion), alongside Alexandria Carbon Black, Kirloskar, Dabur India, Flex P Films, SCIB Paints, Godrej, Mahindra, and Monginis. These Indian firms span a diverse array of sectors, including apparel, agriculture, chemicals, energy, automobiles, and retail. Collectively, they create both direct and indirect employment opportunities for around 35,000 Egyptians.
During a meeting on 23 July, the Egyptian-Indian Council members highlighted a growing interest among many other Indian firms to enter the Egyptian market. These companies are strategically eyeing pivotal sectors, including new energy, green hydrogen, engineering, communications, and information technology, as prime opportunities for expansion.
One of the biggest investors in Egypt is India’s Rana Group. Rana Group, known for its ventures in electric vehicle and agricultural equipment manufacturing, satellites, and sustainable energy, including green hydrogen, is expanding its horizons with a visit to Egypt.
The group has a plan to embark on a USD 12 billion (EGP 583.5 billion) green hydrogen production venture in Egypt, a move poised to make a substantial impact on the renewable energy sector. This move reflects Rana Group’s strategy to extend its footprint beyond India, particularly into Africa, by exploring investment opportunities in Egypt.
Egypt has made investments in India as well, totaling approximately USD 37 million (EGP 1.8 billion) in the production of smart electric meters and automotive paints.
This ambitious investment initiative signifies a promising new chapter in the economic collaboration between Egypt and India, fostering mutual growth and prosperity for both nations in the years to come.
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