The Hindu Business Line : India-Israel preferential trading plan on cards

SHALOM: The Deputy Prime Minister and Minister of Industry, Trade and Labour of Israel, Mr Eliyahu Yishai, being welcomed by the former President of FICCI, Mr Y.K. Modi, and the Minister of State for Mines, Mr T. Subbarami Reddy, at a meeting in the Capital on Wednesday. - Kamal Narang

New Delhi , Dec. 6

Israel-India trade will get a boost with the two countries working towards a preferential trading arrangement, the Israeli Deputy Prime Minister and Minister for Industry, Trade and Labour, Mr Eliyahu Yishai MK, said.

Addressing a meeting organised by industry chamber FICCI on Wednesday, Mr Yishai said, "I have had extensive discussions with my counterpart in the Trade Ministry, Mr Kamal Nath. We remain committed to expanding bilateral trade," the first phase of which will be launched shortly.

The Minister of State for Mines, Dr T. Subbarami Reddy, said India's new mining policy is expected to be released in the next few months. The policy will encourage exploration and extraction of minerals by foreign companies. He invited Israeli entrepreneurs to participate in the diamond sector by bringing in venture capital funding.

Mr David Danieli, Israeli Ambassador to India, said India has been targeted as one of the four countries by Israel for the expansion of trade and economic cooperation. The bilateral trade, which was currently at $2.5 billion, could easily be expanded to $5 billion.

Assurance to diamond traders

The long-standing issue of long-term visa for Indian diamond traders or diamond business persons of Indian origin in Israel would be resolved as early as next month.

The visiting Deputy Prime Minister and Minister of Industry, Trade and Labour of Israel, Mr Eli Yishai, gave this assurance to the Union Commerce and Industry Minister, Mr Kamal Nath, at a bilateral meeting held here on Tuesday night.

An official release issued here said, there was an increase of 37 per cent in diamonds traded between the two countries from $118.6 million in October 2005 to $162.4 million in October 2006. Exports of diamonds (cut and polished) from India to Israel increased by 48.43 per cent from $76.4 million in October 2005 to $113.4 million in October 2006 and exports of diamonds from Israel to India increased by 16.11 per cent from $42.2 million in October 2005 to $49 million in October 2006.

The two ministers reviewed the progress in implementation of the recommendations of the Joint Study Group set up in December 2004.

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