India and Israel will further expand bilateral trade and investment relations building on the respective strengths of the two economies.
This was highlighted during discussions between Shri Kamal Nath, minister of commerce and industry and Mr. Eli Yishai, deputy prime minister and minister of industry, trade and labor of the government of Israel, who was accompanied by a large Israeli business delegation.
Shri Kamal Nath described Mr. Yishai’s visit as an important milestone in the development of bilateral relations between the two countries and said this was in continuation of the process started by Prime Minister Mr. Ehud Olmert’s visit to India in December 2004 when it was agreed to establish a Joint Study Group to make recommendations on mechanisms and targets for expanding trade and economic cooperation.
Several steps have since been implemented including the opening up of an Indian bank in Israel, finalization of an Agreement on Standardization and initiation of discussions between the two sides for a Preferential Trade Agreement (PTA), based on the recommendations of the Joint Study Group.
A Cooperation Agreement between India and Israel in the field of Standards, Technical Regulations and Sanitary Measures is also under consideration, under which both sides could cooperate in this field through harmonization of national standards with international standards requirements, facilitation for establishing scientific and technical collaboration and elimination of technical barriers to trade.
39 percent growth in exports to Israel
Trade between India and Israel stood at USD 2.2 billion in 2005-06, of which India’s exports to Israel were valued at USD 1.2 billion and India’s imports from Israel at USD 1 billion. During 2004-05, India’s exports to Israel crossed USD 1 billion, registering a growth of nearly 39 percent.
The top five items of exports from India to Israel are: Gems & Jewelry, drugs, pharmaceuticals & fine chemicals, cotton yarn, fabrics, made-ups etc., plastic & linoleum products, inorganic/organic/agro-chemicals etc.
The top five items of imports by India from Israel include: Pearls, precious / semi-precious stones; electronic goods, fertilizers manufactured, professional instruments etc., except electronic and organic chemicals.
There is considerable scope in sectors other than diamonds and cotton, especially organic chemicals, plastics and rubber, electrical component, software, pharmaceuticals and medical disposable metals and machinery etc.