Cairo | India and Africa should explore a broader trade arrangement as a more predictable framework could further boost trade, investment and economic cooperation between the two regions, industry chamber Ficci said on Saturday.
Ficci Secretary General Anant Swarup said that with bilateral trade reaching USD 93.6 billion in 2025-26, the economic relationship between the two regions has acquired a significant scale.
"There is considerable merit in exploring a broader India-Africa trade arrangement. A more comprehensive and predictable trade framework could provide further impetus to this partnership," Swarup told PTI.
He said that both India and Africa should explore the possibility of developing a broader and more comprehensive trade arrangement that builds on their existing economic complementarities, facilitates greater market access, encourages investment flows and strengthens regional and bilateral value chains.
"Such an arrangement could also help address emerging trade barriers, promote greater policy predictability and unlock new opportunities for businesses on both sides," Swarup said.
India's exports to Africa grew by 6.23 per cent to USD 45.4 billion in 2025-26 from USD 42.7 billion in 2024-25.
These remarks are important as Commerce and Industry Minister Piyush Goyal pays a two-day visit to Egypt beginning November 15 with a business delegation, including members from Ficci, to explore ways to boost trade and investments between India and Egypt.
As per reports, Egypt (a North African nation) is projected to be Africa's second-largest economy by nominal GDP, after South Africa, in 2026. The nominal GDP in 2026 stood at USD 443 billion, as per estimates.
Goyal's visit is expected to provide fresh momentum to economic ties between India and Egypt, following Prime Minister Narendra Modi's visit to Egypt in 2023.
Indian industry views Egypt as both an important destination market and a potential strategic platform for expanding its engagement with wider regional and global markets.
India and Egypt have decided to elevate their ties to the level of strategic partnership.
INDIA-EGYPT BUISNESS OPPORTUNTIES:
Egypt's strategic geographical location, connecting Africa, the Arab region and Europe, offers considerable advantages for businesses looking to strengthen their international presence.
The country's proximity to major international shipping routes, particularly through the Suez Canal, along with its developing port and logistics infrastructure, provides an important foundation for manufacturing, supply-chain integration and trade facilitation, he said.
Egypt's network of trade agreements with African, Arab and European markets creates opportunities for Indian companies to explore export-oriented manufacturing and regional distribution, subject to applicable rules of origin and market-access requirements.
"Indian businesses can leverage Egypt's strengths in multiple ways by serving its domestic market, establishing manufacturing partnerships, developing logistics capabilities and exploring opportunities to access neighbouring markets," Swarup said.
He added that Egypt offers an attractive landscape for Indian enterprises, given the scale of its domestic market, ongoing economic transformation and growing emphasis on private-sector participation.
The areas where the two countries can increase cooperation include startups, fintech, infrastructure development, pharmaceuticals, and automobiles.
"For Indian companies to translate these opportunities into viable investments, a predictable, transparent and facilitative business environment is essential. Key considerations include streamlining regulatory approvals and licensing procedures including ensuring consistency in policy implementation," he suggested.
Egypt has undertaken several important initiatives to improve its investment climate, streamline investor services and attract international investment, he said, adding that continued progress in regulatory simplification, institutional coordination and financial-sector facilitation would further strengthen investor confidence.
"The focus should be on creating an enabling ecosystem in which Indian enterprises can participate with confidence, bring in technology and expertise, and build commercially sustainable partnerships that contribute to Egypt's economic transformation and shared prosperity," Swarup said.
The bilateral trade grew by 36.7 per cent to USD 6.5 billion in 2025-26 from USD 4.8 billion in 2024-25. Both sides are aiming to increase it to USD 12 billion in the coming years.
While India's exports rose by 13.6 per cent to USD 3.9 billion last fiscal from USD 3.4 billion in 2024-25, imports jumped by about 96 per cent in 2025-26 to USD 2.6 billion from USD 1.32 billion in the previous fiscal.
India's major exports to Egypt include petroleum products, engineering goods, machinery, chemicals, cotton yarn, textiles, pharmaceuticals and buffalo meat.
In return, India imports petroleum products, inorganic chemicals, fertilisers, raw cotton, citrus fruits and other agricultural commodities from Egypt.
