Cairo – November 15, 2023: Egypt could see a potential entry into the Indian financial markets as part of efforts to diversify its financing sources, according to a recent Ministry of Finance statement.
Minister of Finance Mohamed Maait recently met with the Indian Ambassador to Cairo, Ajit Gupte, to explore methods of enhancing economic cooperation between the two countries.
Maait explained that Egypt remains committed to diversifying its sources of financing, and is considering entering new financial markets through sustainable financial instruments, including India.
The finance minister pointed out the potential returns of Egypt tapping into India’s financial markets, adding that it would build upon the country’s success in issuing Samurai and Panda bonds earlier this year.
The meeting also explored utilizing local currencies for trade settlements between Egypt and India as well as ways to enable Indian companies to leverage the incentives being offered to the private sector.
Minister of Supply and Internal Trade, Ali El-Meselhi, announced in April that the supply ministry was studying possibly adopting the country's local currency in its trade transactions with India, China, and Russia, as part of measures to reduce demand for the US Dollar.
Speaking to Reuters, sources revealed that India was reviewing a proposal to switch to a barter trade system with Egypt in June, enabling the latter to purchase certain commodities such as fertilizer and gas using Indian rupees.
Egypt and India have cooperated in several fields, including financial inclusion technology, and India’s support for Egypt’s comprehensive health insurance project, which aims to make quality healthcare more accessible for all Egyptians.
India is ranked as Egypt’s 9th top exporter with a total trade volume of $3.484 billion, and, as of the first half of 2023, Indian companies have invested about $170 million in Egypt.
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