CAIRO: India’s Ambassador to Egypt A. Gopinathan announced during the celebration of India’s 60th Independence Day on August 12 that several Indian investors plan to expand their operations in Egypt.
“Indian-Egyptian Fertilizers Company – the largest Indian company in the field – will invest around $500 million in Egypt within the next three years, he said. “Another company will invest $10 billion in the coming years in the fields of petrochemicals, refinery, and hydrocarbon.
Being a natural gateway to the Middle East and North Africa, Egypt has become the target of Indian companies seeking to invest in a large consumer market with inexpensive labor – with total Indian investments expected to soar to $1.5 billion by the year 2009.
Stressing India’s interest in enhancing economic and business relations with Egypt, Gopinathan said that the Confederation of Indian Industry will organize Egypt’s first “Made in India Show next November. The show will project achievements of the Indian industry over the past decade including agricultural and packaging machinery, construction equipment, auto parts as well as textile and garment machinery, among others.
According to the embassy, Indian exports to Egypt include machinery, textile fibers, plastic and rubber, pharmaceuticals, tea, and tobacco. Egyptian exports, on the other hand, are mainly oil and gas – which constitute around 95 percent – followed by raw cotton, rock phosphate, and marble.
Hindu-Egyptian trade ties have also been on the rise. Bilateral trade amounted to $1.8 billion in the 2006/07 fiscal year. India has now become Egypt’s third largest trading partner, after the US and Italy, and the largest importer of Egyptian products. India’s exports to Egypt crossed $355 million; while Egypt’s exports to India, mainly oil and gas, reached $1,392 million.
Such an expansion in investment lies in the “pragmatic vision of Indian companies. “It is the result of Indian companies pursuing liberal investments and their [will] to establish their presence in foreign countries, explained Gopinathan.
He continued saying that another Indian investment group signed a Memorandum of Understanding to establish a petrochemical plant pouring in investments worth $100 million.
“Indian ICT companies have also made their presence here in Egypt, and additional joint ventures will be established in the near future, bringing two new IT companies to the Smart Village.
He added that Egypt’s openness to foreign investment and privatization encouraged Indian investors to enter the market, leading these companies to export up to 100 percent of their production and to gain more competitiveness in today’s global markets.
“Indian investment flows into Egypt currently stand between $700-750 million . mainly in the fields of IT, cement, petrochemicals, steel, and fertilizers, said Gopinathan.
India currently ranks as Egypt’s twelfth largest foreign investor with around 40 projects, including Alexandria Carbon Black, Asian Paints, Oberoi Group, and Alexandria Fiber Co., Dabur India for cosmetics, Niletex, and Satyam Computer Services.
