The Hindu Business Line : Potential seen for India, Egypt bilateral trade

Mr Kamal Nath, Minister of Commerce and Industry, with Mr Mohamed Hosni Mubarak, President of Egypt, during a meeting with Indian businessmen in the Capital on Monday.

Our Bureau

New Delhi, Nov. 17 The Union Minister for Commerce and Industry, Mr Kamal Nath, on Monday said there is an enormous potential for expanding bilateral trade between India and Egypt and a need to further diversify the trade basket.

Addressing a Business Session with the Egypt President, Mr Mohamed Hosni Mubarak, here, Mr Nath said that the possible areas of cooperation for growth in bilateral trade volume include steel, construction, tractors & agricultural equipment, pumps and diesel engines, pharmaceuticals, tourism, auto components, information technology, fertilisers, phosphates & urea, hotel management, textiles, biotechnology and use of natural gas in cars.

Egypt has traditionally been one of India’s most important trading partners in the African continent and Egypt alone accounts for almost 40 per cent of India’s trade with Northern Africa, he said.

The Minister welcomed the Egyptian proposal for establishing an Indian Industrial Zone in Egypt exclusively for Indian companies. He said Egypt’s strategic location makes it a gateway for the 20-country Common Market for Eastern and Southern Africa (COMESA), the 27-nation European Union and the Arab Free Trade Area.

Both the countries are already benefiting from a bilateral investment protection pact, which has been in force since 2000. “Companies such as Ranbaxy, Kirloskar, Dabur, Ashok Leyland, and Essel already have an investment presence in Egypt. I am sure that with these investments, India could well emerge among the top ten foreign investors in Egypt,” he added.

During 2007-08, India’s exports to Egypt were $1,396.23 million compared with $760.41 million during 2006-07. Imports (including oil imports) during the same period were $1982.77 million compared with $1741.65 million during the year 2006-07.

The top Indian export items include frozen meat, cotton yarn and synthetic yarn, rice, diesel, tobacco, electrical machinery, soyabean, chemicals, automobiles and components, sugar, pharmaceuticals and tea. Nearly 95 per cent of Egypt’s exports to India comprise oil and gas. Coking coal, raw cotton, rock phosphate and marble make up the balance 5 per cent.

More Stories on : Foreign Trade

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page