EGYPT INVITES INDIAN COMPANIES FOR SETTING UP JV’S IN INDIA

Thursday, October 29, 2009

Anand Sharma calls for building a comprehensive economic partnership between India and Egypt

EGYPT INVITES INDIAN COMPANIES FOR SETTING UP JV’S IN INDIA INVESTMENT ZONE

Shri Anand Sharma, Union Minister for Commerce & Industry has called upon the business leaders of India and Egypt to work for building a Comprehensive Economic Partnership between the two countries. He was addressing a meeting of the Business Forum organized by the Egyptian Ministry of Trade and Industry in Cairo today. He is currently visiting Cairo at the invitation of Mr. Rachid Mohamed Rachid, Minister for Trade & Industry of the Arab Republic of Egypt, to participate in an Informal African WTO Trade Ministerial Brainstorming Session on “Consolidating the Development Dimension”. Prior to this in September 2009, an Informal Ministerial Meeting on the Doha Round of WTO was organized in New Delhi, which was attended by Minister Rachid.

Earlier Shri Anand Sharma had a meeting with Dr. Ahmed Nazif, Prime Minister of Egypt this morning, where wide ranging bilateral issues as well as global developments of mutual interest were discussed. With links going back to ancient time, India and Egypt have traditionally enjoyed close and friendly relations. In modern times, a firm foundation was laid by great leaders like Pandit Jawaharlal Nehru and President Nasser. Bilateral relations are marked by mutual respect, goodwill and understanding and constitute a factor of peace and stability in international relations. Shri Anand Sharma also briefed the Prime Minister Dr Nazif about the recent developments in India that have taken place after the visit of Shri Hosny Mubarak, President of Egypt to India in November 2008 and after the visit of Dr. Manmohan Singh, Prime Minister of India to Egypt in July 2009 for attending the XV Summit of the Non-Aligned Movement. Egyptian Prime Minister has invited India to set up joint ventures with Egyptian companies in an exclusive India investment zone that he is proposing to establish. He also suggested that both countries should explore possibilities of joint ventures in third countries. In addition, the Prime Minister mentioned that he is personally committed to taking the economic engagement with India to a higher level.

Shri Sharma also participated in the Informal African WTO Trade Ministerial Brainstorming session on “Consolidating the Development Dimension”, which was attended by 22 other Ministers and Director General of WTO. The meeting focused on finding the ways and means of a closer cooperation among the participating countries for adopting a common approach to the major issues coming up for discussions in WTO. It was felt that cooperation was the only way of protecting the interest of the developing countries in a forum like WTO.

After the WTO Brainstorming Session, Shri Anand Sharma had a fruitful bilateral meeting with Mr. Rachid and discussed the ways of boosting the economic and commercial relations. Bilateral trade between India and Egypt has been growing steadily till the financial year 2007-08, when it crossed US$ 3 billion for the first time. Despite being a net foreign investment recipient country, India has invested significantly in Egypt. In Egypt, there are 40 projects in diverse areas like chemicals, petrochemicals, pharmaceuticals, cosmetics, garments etc. that have received of a total of US $ 750 million Indian investment. Additionally, ONGC Videsh Ltd (OVL) and Gujarat State Petroleum Corporation (GSPC) have met investment commitments of US$ 300 to 500 million in the oil exploration sector. Both the Ministers agreed that the existing close economic relations within the two countries need to be taken to a higher level by going beyond the trade figures alone. At the end of the talks, the two Ministers signed a Joint Action Plan for cooperation between the Egyptian Ministry of Trade and Industry and the Indian Ministry of Micro, Small and Medium Enterprises (MSMEs). MSMEs play an important role in the economies of both the countries by providing employment for millions of people and by working as a vital entrepreneurial training ground for the small entrepreneurs not possessing sufficient financial resources to start a large business house. A Joint Committee will be constituted soon for implementation of the Action Plan.

A 16-member delegation from Confederation of Indian Industries (CII) has also accompanied Shri Anand Sharma. CII delegation called on Dr. Mahmoud Safwat Mohyee El-Din, Minister for Investment of Egypt and had very productive meetings at Egyptian Ministry of Electricity & Energy, Federation of Egyptian Industries (FEI) and Egyptian Businessmen Association (EBA). The other engagement of the CII delegation was a Business Forum followed by a Networking Dinner organized by the Egyptian Ministry of Trade & Industry. The Business forum was also attended by Shri Anand Sharma who called upon the business leaders of two countries to work for building a comprehensive economic partnership between the two countries.