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Bilateral Trade Relations
Home › Economic & Commerce › Bilateral Trade Relations

Embassy of India

Tel Aviv

India-Israel Economic and Commercial Relations

 1. Since the establishment of diplomatic relations between India and Israel in 1992, bilateral trade and economic relations have progressed rapidly. From USD 200 million in 1992 (comprising primarily of diamonds), merchandise trade diversified and reached USD 5.02 billion (excluding defence) in 2016-17 with the balance of trade being in India’s favour by more than USD 1 billion.

2. India is Israel’s third largest trading partner in Asia and tenth largest globally. Though bilateral trade is dominated mainly by diamonds and chemicals, recent years have witnessed an increase in trade in areas such as electronic machinery and high tech products, communications systems, medical equipment etc. India continues to be a 'focus' country for Israeli Government’s increased trade efforts.

3.  Major exports from India to Israel include pearls and precious stones, chemical and mineral products, machinery and electrical equipment, textile and textile articles, plastics, rubber, plants and vegetable products, mineral products, rubber and plastic products, base metals and transport equipment.

4.  Major exports from Israel to India include pearls and precious stones, chemical and mineral products, machinery and electrical equipment, base metals, defence, machinery and transport equipment.

 

5.  Investments

India’s Investments in Israel: India’s investments in Israel (April 2000 - June 2017) totalled USD 122.4 million (Department of Industrial Policy & Promotion, GoI). Indian companies are marking their presence in Israel through mergers and acquisitions and by opening branch offices. TCS started operations in Israel in 2005; State Bank of India opened a branch in Tel Aviv in 2007; Jain Irrigation fully acquired NaanDan (an Israeli irrigation equipment manufacturing company) in 2012 and Sun Pharma has a 66.7% stake in Israel’s Taro Pharmaceutical Industries. Infosys, Tech Mahindra and Wipro Infrastructure Engineering are some other major Indian companies which have made notable acquisitions/investments in Israel during the period 2015 and 2016.

 (ii) Indian major companies are also making a mark in the Israeli innovation eco-system. In 2013, Tata Group invested USD 5 million in the Momentum Fund of Ramot, Technology Transfer Center at Tel Aviv University. Subsequently, in 2016, Tatas joined hands with several leading global players to set up a new technology incubator, called i3 Equity Partners (i3), which focuses on developing next-generation IoT technologies. Wipro has invested in TLV Partners (an Israel-based venture capital firm). Sun Pharma has collaborations with Weizmann Institute of Science and Technion Institute of Technology. L&T Technology Services opened a R&D Centre in Jerusalem and a Sales Office in Tel Aviv in November 2017.

Israel’s Investments in India: There are over 300 investments from Israel in India mainly in the high-tech domain and in agriculture. These investments vary in nature - manufacturing plants, R&D centers, subsidiaries etc. There is a growing preference for Israeli companies in sectors such as water technologies, homeland security and real estate in addition to traditional areas such as agriculture, chemicals etc. Teva Pharmaceuticals, IDE, Netafim (invested more than USD 25 million in India, 2017), ADAMA (invested over USD 50 million in India, 2017), etc. are among the leading Israeli companies, which have notable investments in India.

 

Cooperation in Agriculture and Water Technologies:

6. Agriculture: Under a comprehensive Work Plan for cooperation in agriculture signed on 10th May 2006, bilateral projects are implemented through MASHAV (Center for International Cooperation of Israel’s Ministry of Foreign Affairs) and CINADCO (Centre for International Agricultural Development Cooperation of Israel’s Ministry of Agriculture and Rural Development). Agricultural cooperation between the two sides is formalized through 3-year Work Plans wherein 3-year Action Plans are developed.

 7. The Second Action Plan (2012-15) expanded bilateral cooperation to nine States in India (Haryana, Maharashtra, Karnataka, Rajasthan, Gujarat, Tamil Nadu etc.) and under the Plan, 26 Centres of Excellence (CoE) were proposed. The CoEs have exposed the Indian farmers to scientific approach in farming across produces:  Mango (Ratnagiri) Citrus (Akola), Pomegranate (Rahuri) etc.

8. The Third Action Plan (2015-18) was signed in September, 2015. Under this Plan, Israel envisages to expand cooperation into six more states, as well as in new sectors such as water, dairy and honey production value chain, pollination and as well as in modern technologies to ensure food security.

9. Thus far, out of 28 CoEs in nine Indian states (Bihar, Gujarat, Haryana, Karnataka, Maharashtra, Punjab, Rajasthan, Tamil Nadu and Uttar Pradesh), 22 have been commissioned. In 2017, India and Israel inaugurated a CoE for Integrated Beekeeping Development in Ramnagar, Haryana, which is the first of its kind between India and Israel and will address a number of issues like “Queen Rearing, Quality Control Labs, Enhanced Production, Honey Production Value Chain, and Pollination. It is the 4th CoE to be inaugurated in Haryana.

10. Indian officials have been receiving training in Israel from time to time. Indian official and business delegations regularly attend Israel’s triennial international agricultural exhibition event, Agritech, which showcases Israel’s achievements in agriculture. In Agritech 2018, India was represented by the MoS for Agriculture & Farmers’ Welfare; Chief Minister of Haryana and official delegations from Uttarakhand & Punjab.

11. MASHAV, Israel’s Agency for International Development Cooperation, is active in India with many experimental and demonstration projects. MASHAV operates an agricultural demonstration farm in Pusa and regularly runs courses on developing small and medium- sized businesses in rural areas.

12. In 2014, Naan-Dan Jain won the world’s largest micro- irrigation project in Karnataka. In 2017, Naan-Dan Jain was awarded the Poorigali Integrated Micro Irrigation Project by Cauvery Neeravari Nigam Limited, Govt. of Karnataka, through National Competitive Bidding. Netafim won a USD 62 million project in Karnataka which is expected to benefit 6,000 farmers. Other Israeli companies like Adama, Aqwise, IDE, Ayala and Tahal are also working extensively in India for integrated water and agricultural solutions. As of 2017, about 15 million Indian farmers benefited from the use of drip irrigation. 

 

 Water Technologies

13. Ongoing cooperation between the two countries in the water sector was formalized through an MOU on Water Resources Management and Development Cooperation signed in November 2016. Indian companies and official delegations regularly visit the bi-annual event WATEC in Israel which showcases Israel’s water and energy technologies.

14. Israeli company IDE has built several desalination plants in India. A 100 MLD per day desalination plant set up by IDE at Nemelli in Tamil Nadu was commissioned in 2013, which is the second such plant in Chennai. IDE has India’s largest desalination plant in Jamnagar (Gujarat) with a capacity of 160,000 cubic metres/day. Israel’s national water company Mekorot, is providing its expertise to concerned organizations in Greater Mumbai and West Bengal. Tahal group signed a USD 74 million deal with the Karnataka Government to design, construct and operate a water supply system to 131 villages in the State. An Israeli company, Aqwise, has a joint venture with Triveni Engineering to provide clean drinking water to Uttar Pradesh Jal Board for almost 2 million residents of Agra with a special water treatment plant on the river Yamuna. Another Israeli company, Ayala, won a contract in February 2017 to clean an eight kms stretch along the river Yamuna in Delhi.

 

 Industrial and R&D Cooperation

15. Under a bilateral agreement, in May 2005, the India-Israel Initiative for Industrial R&D (i4RD) was set up to support joint industrial R&D projects aimed at development of products or processes leading to commercialization in the global market. This cooperation agreement was signed between the Ministry of Science and Technology, Department of Science and Technology (DST), India and the Ministry of Economy, Israel. i4RD provides partner matching services and funding for joint bilateral research and development (R&D) projects, involving at least one Indian and one Israeli company. The framework is jointly implemented by Global Innovation and Technology Alliance (GITA), and MATIMOP, Israeli Industry Centre for R&D. Currently funded projects are focused on the hi-tech sector, for development of both software and hardware technologies.

 16. In March 2013, under an MOU between MATIMOP, on behalf of the Office of the Chief Scientist (OCS) in Israel and the Karnataka Science & Technology Promotion Society (KSTePS) and the Karnataka State Council for Science and Technology (KSCST), the Karnataka-Israel Industrial R&D program was set up to provide partner matching assistance and access to funding for industrial R&D by Israeli and Indian companies based in Karnataka. 

17. During the visit of Prime Minister of India to Israel in July 2017, both sides signed and exchanged seven MoUs on cooperation in the areas of innovation, technology, water, agriculture and space & science. A USD 40 million India-Israel Industrial R&D and Technological Innovation Fund (14F) for joint projects was also set up.

18. During the visit of Prime Minister of Israel to India in January 2018, four G2G Agreements (Protocol on Amendments to the Air Transport Agreement, Cyber Security, Oil & Gas & Film Production) and five other semi-government Agreements/MoUs were exchanged.

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July 2018


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