Hyderabad, June 24 The Israeli Ambassador to India, Mr Mark Sofer, has said that India-Israeli trade ties are poised for the next major phase of growth, both in civilian areas and defence.
This growth will be largely triggered by the signing of a free trade agreement (FTA) between the two countries. Already much progress has been made in the FTA talks and it is a matter of time before the agreement is concluded, he said.
In an exclusive interaction with Business Line during his visit to real estate firm PEBL’s facility here, Mr Sofer said the signing of an FTA will potentially triple the trade from $4.2 billion to over $12 billion within four-five years.
Excerpts from the interview:
What is the current status of the FTA?
From merely $180 million in 1992, exports have grown to a whopping $4.2 billion. There are many areas where trade could increase further significantly, both in civilian and defence areas. Israeli investments in India have crossed $6 billion. The $4.2-billion trade is only with regard to civilian areas and does not include defence, which in itself is a big area.
As per the pre-feasibility assessment, both the countries are in favour of an FTA and believe that it is mutually beneficial. The trade opportunities are not competitive but complimentary. It is not clear as to when this will be formalised. But it could be quite soon and has the potential to serve as a metamorphosis in the relations between the two nations.
Could you outline some areas with potential?
We have the capability to transform desert to bloom. Israel brings great learning through research in the filed of agriculture and specialises in cultivation using scarce resources that could be useful to about 700 million farmers in India. The expertise in computerised drip irrigation and water management could be very helpful in India — along with untapped potential in dairy sector. Other areas of cooperation include life-sciences and pharmaceuticals, science and technology, the hardware aspect of IT, and homeland security.
After the Mumbai terrorist attack, when Indians and Israelis were targeted, there is a need for greater cooperation on homeland security. These could create jobs on both sides.
What about defence?
I would limit myself to civilian issues. Recent news about AWACS and the cooperation between Russia, India and Israel have been talked about. Israel’s contribution is significant in the form of radar and surveillance systems.
I understand Israeli companies have invested in Indian realty sector…
Israeli investments span not just hi-tech areas, but also real estate, through IDB’s financing arm and Elbit Imaging and Elbit in defence. In the case of real estate, IDB has invested in PEBL, which is now on an expansion path and looking at Chennai, Bangalore, Mysore and other areas.
Source : Business Line