Search

Indian PM Modi arrives in Israel, economic boost expected

For Israel-India ties, economic figures point to bright future.

Israel, and its industry and economy, were set to host Indian Prime Minister Narenda Modi, who arrived in the Jewish State on Tuesday.

This is the first visit by an Indian prime minister to Israel and coincides with the 25th anniversary of the establishment of diplomatic relations between the countries.

Israeli companies hope that the visit will boost commercial ties between the two countries, while a survey of the economic transactions between Israel and India in the past years shows they have much to look forward to.

According to the Israeli Ministry of Economy and Industry, since the establishment of diplomatic relations between India and Israel in 1992, trade between the countries has grown from $200 million in 1992 to $4.13 billion in 2016.

In 2015, Israeli exports saw a 21 percent increase, reaching $1.29 Billion. In 2016, the exports totaled at $1.15 billion.

As part of their schedules, the prime ministers of India and Israel are expected to attend the opening of the CEO Forum, which will include Israeli CEOs and CEOs of Indian mega-corporations.

In addition, Modi will get an up-close look at groundbreaking innovation throughout Israel – including ingenious solutions in water technology and agriculture. He will also sign a new agreement to promote R&D cooperation between Israeli and Indian companies.

Israeli Minister of Economy and Industry Eli Cohen said that “India is a key export market for Israel. Tightening relations with India and this historic visit of the Indian Prime Minister will lead, beyond increasing security exports, to growth in trade in goods and services.”

The Indian economy is becoming a prime destination for Israeli exports, with its 1.3 billion consumers, led by 300 million citizens in the middle and upper-middle class, with purchasing power equal to the middle class of Western economies.

India: Israel’s Second Largest Trade Partner in Asia

India represents one of Israel’s most important export markets. In 2016, India was ranked ninth among Israeli trade destinations. This can be attributed to warming bilateral relations, which have been strengthened in recent years.

Several joint ventures have been launched in the fields of agriculture, science, health, IT and telecommunications. Both sides are eager to cooperate on other issues as well, such as water and smart cities.

As of today, India is Israel’s second largest trade partner in Asia, after China.

Since the 1990s, the governments of Israel and India have signed a variety of cooperation agreements in the sectors of agriculture, communications, trade, investment, R&D, environmental protection, water and medicine.

Israeli companies have also established offices and even production facilities in India.

By: Aryeh Savir, World Israel News