India’s Trade with Israel Has Increased by 50% Since Before the Pandemic

The Free Trade Agreement (FTA) between Israel and India might have been initially delayed, but it has certainly yielded impressive results. A recent visit of India’s External Affairs Minister S. Jaishankar to Israel has solidified the agreement which has borne fruit–trade between the two countries has increased from $5 billion to $7.5 billion in the last two years.

According to the Israeli Ambassador to India Naor Gilon, the rising tide of trade with India was increasing even before details of the FTA were nailed down, and he told The Hindu that the development was “very encouraging…and I believe this trend in increasing trade will continue.”

India is Israel’s third-largest trading partner in Asia and seventh-largest globally. In the past few years, bilateral trade has expanded into pharmaceuticals, agriculture, telecom, IT, precious stones, textiles, and chemical products.

The Adani Scandal and Haifa’s Port

Amid this hopeful news, there is uncertainty about the aftermath of Gautam Adani’s purchase of the Haif port for $1.8 billion, 55% more than the closest bid. However, according to Hindenburg Research, just days after Adani’s purchase of the Haifa port was made final, it came to light that Adani has been suspected of pulling off a brazen stock manipulation scheme and accounting fraud.

Although the outcome of these allegations may leave the future of Asani as the owner of the Haifa port in doubt, in the worst-case scenario, the ownership may simply change hands. This may have less of an effect on the Haifa port than it will on Asani’s fortunes.

Fortunately, Israeli and Indian trade has more going for it than one major deal. The cooperation between the two countries in multiple sectors will provide growth opportunities for both Israel and India.

Indian and Israeli Trade Goes from Strength to Strength

At a celebration of 75 years since India’s independence and the 30th year of normalization of relations between the two countries, Israel’s president Isaac Herzog said “Israel and India both aim for equality and prosperity, we both face challenges, internal and external, and we are both open to expanding partnerships.”

Anat Bernstein-Reich, CEO and co-founder of BDO Israel-India Investment Banking and Consulting told Media Line, It’s really obvious that this as a relationship will continue to grow from strength to strength… The relationship is built on a strong infrastructure; there is a good foundation to continue the collaboration between the two countries.”

Strong Global Economic Ties Are a Solid Reason to Invest in Israel

One thing factor that strengthens Israeli investments is the country’s strong global economic ties. Trade agreements, solid diplomatic relations, and expanding markets bode well for Israel’s economy. News of increasing trade between Israel and India is yet another reason why now is a good time to invest in Israel.

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