Ghosal, the world no. 14, who has won the national title on 12 occasions, surged to 11-8 11-6 11-7 victory in just 37 minutes against the world no. 39 Fathi at the NSCI courts.
But another Indian hope, 49th ranked Harinder Pal Sandhu, made his exit as he went down to third-seeded Scot Greg Lobban, the world no. 33, 1-3 after raising hope by winning the opening game. Sandhu lost 11-9 5-11 9-11 7-11.
In the second game, the Indian champion took a commanding 7-2 lead before Egyptian fought back but the leeway was too big to bridge.
In the third game too, Ghosal quickly got into his groove and led 8-3 and then held a match-ball at 10-6. The Egyptian saved one point but then lost the last point via a 'stroke'.
"Last year, I lost to Fathi and I knew it was going to be a hard match and I had to be very precise on what I wanted to do. I think the first game was quite even, but I think I did well towards the end of the game to win that. Then on I got relaxed a little bit more and used my skill both to the back and to the front to open up the court to be better. Overall I did what I wanted to do," said the 31-year-old Indian ace after entering the semis.