2010-10-13

India and Israel have reached an agreement over initiation of talks concerning a financial pact in the form of a free trade agreement (FTA) between the two countries to promote bilateral trade.

The growth of trade between India and Israel has been $5 billion this year, growing from $200 million in 1992 when diplomat relations were established between the two.

According to Israel's Export and International Cooperation Institute, India ranks second in terms of the favored destination for Israeli exports, jumping high above the eighth position it initially occupied. Israeli exports to India in the first half of this year amounted to $990 million, increase of 102% compared to last year. The reason for the sharp rise in exports to India was a 63% jump in shipments by Israel's mining, minerals and quarrying sectors, which exported $228 million worth of products, mainly fertilizers.

Other exports to India from Israel include export of electronic equipment, including warfare systems, growing from less than $10 million in the first half of last year to $160 million this year. Exports of metals and metal products also increased from $21 million to $130 million, a sharp increase of 524%.

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