India and Egypt Explore Local Currency Trade and Preferential Agreements

India and Egypt are exploring ways to settle bilateral trade in respective local currencies, with the central banks of the two countries remaining connected on the issue. The two sides will also examine the possibility of a preferential trade agreement (PTA) or a free trade agreement (FTA) to improve market access and make trade more competitive, Commerce and Industry Minister Piyush Goyal said on Sunday. Speaking at the seventh India-Egypt Joint Trade Committee meeting in Cairo, Goyal said relatively-balanced bilateral trade provides an opportunity to increase local currency transactions, while greater cooperation on payment systems could reduce the cost of doing business. At the India Egypt Business Forum, Goyal said the two countries would sign a startup partnership agreement and hold the first Egypt-India Startup Forum as part of efforts to deepen business and technology ties. “Our central bankers have connected for local currency trade between India and Egypt. Particularly given that we have a fairly balanced trade, I think more trade in local currencies, more work on payment systems can bring down the cost of business,” he said at the JYC meeting. In 2025-26 total merchandise trade between the two countries stood at $ 6.47 billion with India’s exports at $3.87 billion and imports at $2.60 billion. On a possible trade agreement, Goyal said he and Egypt’s Minister of Investment and Foreign Trade Mohamed Farid Saleh had agreed to task officials with working on the terms of reference to examine the potential of either a PTA or an FTA. India and Egypt are also looking at aligning customs procedures and testing standards to facilitate trade. They will work towards promoting investments and providing a stable and predictable investment climate, Goyal said. Highlighting complementarities between the two economies, Goyal said India offers a large consumer market, manufacturing capabilities and a growing network of free trade agreements, while Egypt’s strategic location at the intersection of Africa, the Arab world and the Mediterranean makes it an important gateway for Indian businesses. He urged Indian companies to consider Egypt as a base for expanding into the Africa and Mediterranean markets, particularly through the Suez Canal Economic Zone. Egypt has offered India an enclave in the zone. “I will talk to my colleagues to examine the various sites that were sent to me and see how we can take this forward, the minister said. The India-Egypt relationship was elevated to a strategic partnership during Prime Minister Narendra Modi’s visit to Egypt in June 2023. Goyal said the two governments were now looking to translate that political commitment into stronger trade, investment and business outcomes.