India and Egypt are striving to increase their bilateral trade from the current $7 billion to $12 billion within a span of five years. Both countries have emphasised the importance of considering a free trade agreement (FTA) to further enhance their mutual trade. 

In the textiles sector, India is a prime market for Egypt's Extra Long Staple (ELS) cotton exports. Although Egypt imports fabric for its garment industry, India's share remains minimal. Similarly, India holds a small share in Egyptian apparel imports. As a significant apparel exporter, Egypt competes with India on the global market. 

Last year, Egypt exported cotton (HSN Code 5201) worth $71.892 million, representing 27.81 per cent of its total export of $258.538 million. According to Fibre2Fashion's market insight tool TexPro, India was the second-largest market for Egyptian cotton exports, following China. 

In 2022, Egypt imported fabric worth $1,304.685 million. Despite being the second-largest supplier after China, India only held a share of 4.47 per cent. The value of imports from India was $58.295 million, while China's supply was valued at $1,114.856 million during the same period. 

Egypt is a major apparel exporting country from Africa, which places it in direct competition with India in the global market. Last year, the African country's apparel exports were valued at $2.437 billion. 

Conversely, India has minimal exposure in the Egyptian apparel market. Egypt imported apparel worth $5.131 million last year, which constituted 2.24 per cent of its total imports amounting to $228.860 million. India ranked sixth in Egypt's apparel imports, following Turkiye, China, Bangladesh, the UAE, and Vietnam, according to TexPro. 

Fibre2Fashion News Desk (KUL)