India ? Israel relations-Economic and Commercial Relations

  • The bilateral merchandise trade was US$ 200 million in 1992 which largely consisted of trade in diamonds.
  • As the bilateral relations got further intensified the two-way merchandise trade zoomed up to US$ 5.19 billion in 2011 followed by a period of stagnation.
  • More than fifty percent of the bilateral trade consists of trade in diamonds.
  • However, in recent times it has diversified into sectors such as pharmaceuticals, agriculture, IT etc.
  • Diamonds and metals, chemical products and textiles are the major exports from India to Israel.
  • Major imports by India from Israel also include Diamonds and metals, chemicals (mainly potash) and machinery and transport equipment are major exports from Israel to India.
  • Almost seventy five percent of bilateral trade in services flow from India to Israel.
  • Apart from direct investments, foreign direct investment (FDI) from Israel to India also flows through USA, Europe and Singapore.
  • Companies from Israel have made substantial investments in India in fields as diversified as renewable energy, telecom, energy, real estate, water technologies etc.
  • An affirmation of India’s investment in Israel came with 100% acquisition of Israeli drip-irrigation company Naandan by Jain Irrigation.
  • The State Bank of India opened a branch in Tel Aviv in 2007.
  • During the last decade, Indian IT majors such as Infosys, Wipro and Tech Mahindra have also made significant investments in Israel.
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