India and Israel have proposed a target of US $ 1 billion for bilateral trade to be achieved by the year 2000. At the Second Meeting of the India-Israel Joint Trade and Economic Committee which concluded here last evening, it has been agreed by both sides that there is a need for expansion of bilateral trade. A press statement issued jointly by both sides says that the Indian delegation at the meeting was led by the Commerce Secretary, Mr. P.P. Prabhu, who in his opening remarks appreciated the tremendous developments Israel had achieved in various fields of the economy, but underlined that out of Israel’s total global trade of around US $ 49 billion in 1997, its trade with India accounted for only 1.3% and that India’s trade with Israel also constituted only 0.9% of India’s global trade. Mr.Dov Mishor, Director General of the Ministry of Industry & Commerce of Israel, who led the Israeli delegation, pointed out that Israel’s exports to Asia excluding Japan had grown from 8% of Israel’s total exports in 1988 to 18% today. Similarly, Israel’s imports from Asia excluding Japan grew from 3% to 10% during this period, signifying the increased role of the Asian market in Israel’s foreign trade.

Although there has been rapid growth in bilateral trade in products such as gems and jewelery, pearls, precious and semi-precious stones, cotton and man-made textiles, basic agro, organic and inorganic chemicals, engineering goods, electronic goods, fertilizers, machinery, project goods, etc., new products like plastics and rubber, electrical and electronic components, computer software, building materials, drugs & pharmaceuticals, medical disposables, metals, machinery, chemicals & allied products and engineering goods were identified as having considerable scope for increasing India’s exports to Israel. The Israeli side identified products and areas such as telecommunications and medicinal equipments, agro-chemical and bio-technology, geo-thermal energy, educational aids and water management as possessing considerable scope for increasing Israel’s exports to India.

Both sides agreed that establishment of joint ventures for exploiting comparative advantages in specific sectors may be pursued with renewed vigour so that markets in both the countries could be exploited for mutual benefit, as well as markets in third countries. It was agreed that experts from Israel would visit India and explore the possibility of establishing joint ventures in India with Indian companies. Issues in respect to licensing and tariff mechanism would also be examined so that it could be resolved with active cooperation from the Ministry of Commerce, before such joint ventures go on stream.

For promotion of trade between the two countries, the Indian side indicated its interest in organizing an exclusive Indian exhibition in Israel in 1999 through the India Trade Promotion Organization (ITPO).

The Indian side expressed its satisfaction over Israel’s participation as a partner country in the 4th Technology Summit being organized by the Confederation of Indian Industry (CII) in New Delhi during October 28-29, 1998. The two sides agreed that this opportunity could be utilized by MATIMOP (The Israeli Industry Center for Research and Development) to prepare a scheme to facilitate the availibility of suitable and modern technologies through a single technology information window in both the countries. The Israeli side submitted material produced by MATIMOP on Israeli technology sources. The proposed framework would also render assistance for the setting up of joint ventures in sectors of mutual benefit.

Both the sides noted that work towards signing of agreement between the Department of Electronics and MATIMOP of Israel, as well as between NASSCOM and the Israeli Association of Software Houses has reached an advanced stage and these could be signed very soon. It was also noted that the instruments of ratification with respect to agreement on telecommunication and posts were ready for exchange by both the countries so that the agreement could come into force.