Cairo: India and Egypt are exploring the possibility of establishing an Egyptian-Indian investment zone while examining a preferential trade agreement (PTA) or a free trade agreement (FTA) to strengthen bilateral business ties.
The proposals emerged at the India-Egypt Business Forum on November 15, 2026, where both countries discussed improving market access, attracting investments and building stronger startup partnerships.
India’s Minister of Commerce and Industry Piyush Goyal said India and Egypt would ask officials to prepare the terms of reference to assess the feasibility of a preferential trade agreement or a free trade agreement.
The discussions took place alongside proposals to attract Indian investments into Egypt’s Suez Canal Economic Zone and establish closer cooperation between the two countries’ startup ecosystems.
The discussions also included a proposal from Egypt’s Minister for Investment and Foreign Trade, Mohamed Farid Saleh, to establish a dedicated Egyptian-Indian free zone or investment zone where companies from both countries could operate together.
India and Egypt to examine preferential trade agreement or FTA
Speaking at the India-Egypt Business Forum, Goyal said he and Saleh had agreed to direct officials to work on the terms of reference for examining a potential trade agreement between the two countries.
“We will task our officials to work on the terms of reference and examine the potential of either a preferential trade agreement or a free trade agreement between our two countries,” Goyal said.
The proposed trade agreement is aimed at enabling businesses in both countries to trade on more competitive terms while improving access to each other’s markets.
Goyal said the seventh meeting of the Joint Trade Committee (JTC) and a meeting with the Joint Business Council had taken place earlier on November 15.
Saleh highlighted the importance of translating the discussions into business opportunities, noting that the private sector would have to take the lead in implementing the ideas discussed during the Joint Trade Committee meeting, with governments facilitating the process.
While Goyal said officials would be tasked with working on them, Saleh described the terms of reference as “ready”. He also referred to discussions around a preferential trade agreement, an FTA or a comprehensive partnership agreement.
The remarks did not establish whether the terms of reference had been formally finalised. Neither minister announced the conclusion of a trade agreement.
Apart from the proposed preferential trade agreement, Goyal outlined opportunities for closer cooperation between customs authorities and mutual recognition agreements between testing agencies.
These measures are intended to facilitate trade and create a more predictable business environment for companies operating in both markets.
Egypt proposes dedicated Egyptian-Indian investment zone
Saleh invited Indian businesses to explore the establishment of an Egyptian-Indian free zone or investment zone. He indicated that land could be made available in the Suez Canal Economic Zone, the Golden Triangle or other locations in Egypt.
The proposal would provide an opportunity for Indian and Egyptian companies to operate together, although Saleh presented it as an idea for businesses to evaluate rather than an already approved investment project.
Saleh described the proposal as something he was “putting on the table for the businesses to decide”.
Goyal encouraged Indian companies to consider Egypt as a strategic investment and business destination, highlighting its geographical position, the Suez Canal, existing free trade agreements and competitive energy, labour and logistics costs.
“Visit the Suez Canal Economic Zone, talk to GAFI, plan your Africa, Middle East, and Europe strategy from here,” he said.
India-Egypt Startup Partnership Agreement to be signed on November 16
Alongside trade and investment discussions, India and Egypt are preparing to formalise cooperation between their startup ecosystems.
Goyal announced that the India-Egypt Startup Partnership Agreement would be signed on November 16, 2026. The two countries are also scheduled to organise the first Egypt-India Startup Forum on the same day.
The agreement is expected to provide a framework for closer engagement between startups and businesses in both countries, with the proposed forum offering an opportunity to explore cross-border partnerships.
Goyal emphasised the importance of converting discussions into actionable business outcomes. He urged participants to ensure that business-to-business meetings resulted in specific follow-up actions rather than ending with preliminary conversations.
He encouraged businesses to leave each B2B meeting with a clear next step, such as exchanging samples or scheduling a follow-up visit.
