EMBASSY OF INDIA
Business Opportunities January 2012
A. Major Bilateral Economic and Commercial Developments
1. The Confederation of Real Estate Developers Associations of India (Credai),
Gujarat organized a seven-day technical tour for its members in mid-January. The 60-
member delegation, that included developers from Ahmedabad, Mehsana, Rajkot,
Surat, Palanpur, Navsari, Unjha, Bharuch, visited Israel, Jordan and Oman. The
developers visited various construction sites for exchange of technologies and also
gained knowledge of cooperative model for housing and farming followed in Israel 1.
2. The Israeli Ports Company and the Indian Company Cargo Motors won an
international tender for construction of a new container port in the state of Gujarat, for
a total of $600 Million. The port will be constructed 150 Km North of Mumbai.
HANI (The Israeli Ports Company) will hold 26% of its stocks. This is a B.O.T
project where the concessionaire who will construct the port, will operate the port for
30 years, in return for different tolls. Upon the end of this period, the concessionaire
will handover the port to the state for an agreed amount, as per the contract. The
concessionaire is requested to complete financial aspects of the project within 18
3. The Agrovision exhibition organized by Vidarbha Economic Development Council
in Maharashtra (VED) had the presence of Israeli companies engaged in horticulture
technologies and irrigation systems. Some offers on technologies to grow fruits came
with buyback assurance too2. The main focus was on the orange and avocado
4. Government of India has given approval to the State of Israel to open a new
Consulate of the state of Israel in the city of Bangalore, India's Silicon Valley to
strengthen ongoing Hi-tech cooperation. This was announced during the visit to Israel
of Mr. S.M. Krishna, India's Minister of external affairs, during January 2012.
5. A delegation from Rajasthan, which included three Ministers and senior officials,
visited Israel from January 24 to February 3. This was a study tour focused on diary
Mr. Harji Ram Burdak, Minister of Agriculture & Animal Husbandry, Mr. Murari Lal
Meena, State Technical Education Minister, and Mr. Vinod Kumar, State Agriculture
Minister, met with Director General of the Israeli Ministry of Agriculture, and also
senior officials from Mashav (Israel's Agency for International Development
Cooperation) and Cinadco (The Center for International Agricultural Development
6. A delegation comprising 15 representatives from the Ministry of Agriculture in
Karnataka visited Israel from January 29 to February 3. They attended a Seminar
titled "Karnataka offers plenty of opportunities in Agriculture", held at the Israeli
Manufactures Association. They also met officials from the Agriculture Department
at the Export Institute and the Agriculture Committee at the Israel-Asia Chamber of
7. An Indian Textiles delegation, led by Joint Secretary (Exports) Ministry of
Textiles, visited Israel from January 28 – 31, accompanied by Heads of Association in
India dealing with export of carpets, apparel, textile and handloom . They explored
opportunities for bilateral trade in textile, during a business seminar held at the Israel
Export and International Cooperation Institute. They also met officials from the Israeli
Ministry of Industry, Trade and Labor, and Ministry of Foreign Affairs.
B. Economic updates in Israel
1. The Bank of Israel reduced the interest rate for February 2012 by 0.25 % to 2.5 %.
2. From the previous monetary policy discussion held on December 25, 2011,
through January 20, 2012, the exchange rate of the shekel against the dollar was
almost unchanged, in contrast with the strengthening of most major currencies against
the dollar; the shekel appreciated by 1 % against the Euro. In terms of the nominal
effective exchange rate the shekel remained nearly unchanged.
3. The Government of Israel completed in New York a successful issue of dollar-
denominated bonds. The bonds were issued for a 10.5-year term, at a volume of $1.5
billion and a yield to maturity of 4.115%, reflecting a spread of 205 bps (basis points)
above the interest rate on 10-year US treasury bonds. Demand for the issue totaled
$5.8 billion, nearly four times the amount offered. Initially, the Accountant General
had planned to raise $1 billion – however, in view of the strong demand and attractive
price it was decided to expand the offering to $1.5 billion.
The auction closed with 87% of the issue allotted to foreign investors and the
remainder to Israeli investors. Orders were received from 307 investors in 22
countries, among them the US, the UK, Italy, Germany, Switzerland, Spain, Portugal,
the Netherlands, Luxembourg, Belgium and Austria4.
4. Noble Energy and the Delek Group announced another significant discovery of a
natural gas field off the coast of Haifa. The field, located in the Mediterranean waters
120 kilometers (74.5 miles) northwest of Israel's northern port city, reportedly
contains manual gas deposits of about 1.2 to 1.3 trillion cubic feet.
C. Israeli Collaborations Worldwide
1. Israel has approved the construction of the first rail link between its Mediterranean
and Red Sea coasts, offering a new Asia-Europe trade route to compete with the Suez
Canal, a project in which India is also said to have evinced interest.
Red-Med train link construction is likely to take about 5 years and cost
approximately US$ 2.3 billion.
In addition to the strategic aspects of this rail link, it would also shorten travel time
from Eilat (at the Red Sea) to Tel Aviv 2 hours. According to the decision, a
government Committee will consider three options to finance the project - an inter-
governmental agreement with another government with which there are economic
and strategic interests; public funding; or construction through a private franchisee.
Constructing of the new rail link would necessitate both upgrading existing
tracks, and laying new ones5 .
The Israeli Transport Ministry has underscored that Israel would prefer Chinese
state-owned companies to undertake the construction of the Med-Red railway.
China began working on a joint proposal with Israel for the Eilat link. Chinese and
Israeli companies may jointly execute the project and, reportedly, China may invest in
2. The Ministry of Finance and the Office of the Chief Scientist (OCS) in the
Ministry of Industry, Trade and Labor have issued a Request for Information (RFI)
soliciting responses and comments on a new program for encouraging international
corporations to promote research and development in Israel's life sciences
industry and to invest in and provide professional support to Israeli companies in the
The program will increase R&D activity of international corporations in the field of
life sciences in Israel. Under the first track, the corporation will undertake to
establish and operate a life sciences R&D center in Israel that will employ a
minimum of 60 persons during a period of no less than five years. The
establishment of a R&D center will entitle the corporation to government
funding over a period of five years, in an amount of NIS 19 million if the center
is set up in the center of the country, and in an amount of NIS 32 million if it is
set up in the periphery7.
3. Israel and Taiwan signed an aviation agreement that will pave the way for direct air
links between the two countries. The agreement establishes the commercial aviation
rights allowing carriers from the two countries to use each other's air space.
Taiwan is one of Israel’s most important export markets in Asia.
Israel's export to Taiwan reached $726 Million in 2010. Optics and Electronics
Sectors amount to 33% each if Israel's exports to Taiwan. Israeli imports from Taiwan
reached $709 Million in 2010. The Electronics sector accounts to about 30% of Israeli
imports from Taiwan. Taiwan Investments in Israel is estimated at $200 Million.
Israeli investments in Taiwan stand at $20 Million.
D. India-Israel Bilateral Trade Statistics
Bilateral Trade in December 2011 (in US$ millions)
India’s Exports Israel’s Exports Total Bilateral trade % change **
169.4 341.7 511.1 + 30.58% ( from $ 391.4 )
* Source: Israel Central Bureau of Statistics (CBS). * *Compared to Dec 2010.
Bilateral Trade during January- December 2011 (in US$ millions)
India’s Exports Israel’s Exports Total Bilateral trade % change **
2154.5 2998.5 5153 + 8.8% (from $ 4736)
* Source: Israel Central Bureau of Statistics (CBS). ** Compared to Jan-Dec 2010.
Analysis of Trade Figures
(a) In 2011 Balance of trade between Israel and India, was in Israel’s favor by US$ 844 Million.
(b) In 2011, India was ranked the 8th largest trade partner of Israel in the world, and the 3rd largest
trade partner in Asia following China and Hong Kong (*Trade data includes diamonds. ** CBS
gives separate trade data for Hong Kong although it is part of China).
(c) India’s share in Israel’s two way global trade decreased from 4.02% (in 2010) to 3.66% (in
- India is ranked 5th largest export destination of Israel (including diamonds) and 7th when
- India is ranked 11th largest import source of Israel including diamonds, and 16th largest import
source excluding diamonds.
In the month of December 2011:
- Israel’s two-way global trade increased by 1.57% from US$ 10974.2 million in December 2010
to US$ 11,114.2 million in December 2011. India’s share in Israel’s two-way global trade
increased from 3.56% in December 2010 to 4.65% in December 2011.
(d) Israel’s Global Trade in diamonds during Jan-Dec 2011
Israel’s Global Trade in diamonds during Jan-Dec 2011 (in US$ millions)
Period Israel’s Exports Israel’s Imports Total Trade in diamonds
Jan-Dec 2011 20,656.9 10,778.9 31,429.8
Jan-Dec 2010 16,402.2 8,392.1 24,794.3
% change + 25.93 % + 28.36 % + 26.36%
* Source: Israel Central Bureau of Statistics
(e) Israel’s top trade partners in Jan- Dec 2011
Israel’s top trade partners in Jan- Dec 2011 (in US$ billions)
USA Belgium China Hong Kong Germany Switzerland UK India Netherlands Italy
28.069 8.217 8.157 7.189 6.506 5.407 6.154 5.153 4.428 4.889
* Source: Israel Central Bureau of Statistics ** Trade data including diamonds.
E. Business offers from Israeli companies
No Company Products
1. Telhi Ventures This company is interested in
Contact person: Noam Eshkol Indian partners who will assist in
Tel: +9723-9015555 opening the Indian market for
Email: firstname.lastname@example.org Israeli companies.
2. Daniel Avidan Looking for an Indian partner for
Email: email@example.com opening up a company in the field
of digital X-ray
3. Koren Drucker An Israeli lawyer offering legal
Contact person: Yaron Shalem and financial representation for
Tel: +972- 542-1552345 Indian companies who wish to
Email: Drucker.firstname.lastname@example.org open offices in Israel.
4. Oran Elbaz An Israeli freelance programmer
Tel:+972-549-778050 interested in setting up websites
Email:Oranelbaz@gmail.com for Indian companies.
5. Bar-Naor Ltd An Israeli distributor for labs
Contact person: Shay Peled supply is seeking:
Tel: +972 3 916 9000 a. Indian producers for
Fax: +972 3 060 0641 laboratory disposable
Cell: +972 50 6890 875 products (such as pipette
Email: email@example.com tips, sryo-boxes etc.).
b. Indian distributors for
(Histology) and "Liquid
6. IMOnline Israeli company offers an all-in-
Contact person: Arie Shpanya one ecommerce services to Indian
R & D center, Rogovin Tower, 11 Menachem Companies.
begin, Ramat Gan 52681, Israel Company activity includes the
Tel: +972-72-272-3800 following marketing channels:
Email:firstname.lastname@example.org Marketplaces (eBay ,Amazon),
Search engine optimization, Paid
Search, Comparison shopping
websites ,Social media
optimization and affiliate
7. Dr. Danivel Ovad Israeli Neurologist interested in
Tel: 972-57-3149518 setting up Infirmary with an Indian
E-mail: email@example.com partner.
F. Exhibitions and Conferences in Israel
Date Details of Event
1. 29 Feb – 1, 22nd Agro Mashov 2012
March 2012 International Exhibition and Conference for Agriculture
2. 15-17 May, Agritech Israel 2012
2012 The 18th International Agricultural Exhibition
3. 3-4 July, 2012 Clean Tech 2012
16th International Summit and Exhibition for Renewable Energy
and Water Technologies
4. 16-18 Oct, 2012 Plasto Ispack 2012
International Exhibition for Plastics, Rubber and Packaging
Forthcoming Business Delegation to Israel and Events in India
1. Innovation-Visit of Indian Institute Technology to Israel, 3-6 March 2012.
2. Robotics- Visit of Confederation of Indian Industry Delegation, 19-23 March 2012.
3. Life Science- Visit of Confederation of Indian Industry Delegation, 21-23 May 2012.
4. High Tech-Visit of Confederation of Indian Industry Delegation for High Tech Information
Association Annual Conference: 10-12 September 2012.
5. CII 2nd Innovation Summit in India with Israel to be the Partner Country, November 2012.
G. Business focus of the month
There are some 166 water tech enterprises, including 91 companies offering water
efficiency solutions, 50 companies specializing in wastewater reuse and desalination,
and another 25 offering water control and command systems. In addition to serving
the local market, Israel's water technologies can also be found throughout the world:
Israeli water tech exports now total about $1.5 billion annually.
Israeli industry offers also solutions regarding problems of leaking water distribution
systems. Once a water distribution system is in place, continual monitoring is critical
to detect leaks and other faults. On a global basis, more than a third of the drinking
water in municipal distribution systems (and up to 60% in some countries) is lost
before it reaches the consumer. This translates into a loss of an estimated $15 billion
in potential water revenues each year due to leaky infrastructure.
In addition Israel is a world's leader in wastewater recovery, with a water recycling
rate of about 75%, according to Mekorot. The recovered wastewater is used primarily
for agriculture. This effort to reuse water has helped to spawn a large number of
Israeli companies specializing in water filtration and purification. In this regard,
Aqwise has developed a scalable wastewater treatment solution using plastic beads
and a special aeration technology to accelerate the breakdown of wastes and increase
the capacity of treatment plants. Aqwise was named a Global Cleantech 100 company
in 2009 and was also recognized that year as the fastest-growing Israeli technology
company. Its most recent technology is a next-generation DANA (dynamic anaerobic
and aerobic) solution for wastewater treatment and energy recovery.
Address & contact details of the Commercial Wing, Embassy of India:
Mrs. Vani Rao, Counsellor
Head of the Commercial Wing
Embassy of India
140, Hayarkon Street, Tel Aviv 63451
Tel: 03-5291999 ; Fax: 03-5270821
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