Goyal sets ambitious trade target; Israel backs IMEC completion at Business Forum | Mint

New Delhi: India and Israel reaffirmed their commitment to strengthening trade and infrastructure ties, with commerce and industry minister Piyush Goyal setting an ambitious goal of increasing bilateral trade tenfold from the current $6.5 billion. He did not give a timeline.

Israeli economy and industry minister Nir Barkat reiterated Israel’s determination to complete the India-Middle East-Europe Economic Corridor (IMEC).

Both ministers, speaking at joint media briefing of the India-Israel Business Forum in New Delhi, highlighted the strategic importance of deeper economic collaboration and the shared vision of their leadership in fostering global trade connectivity.

Also read | India eyes stronger trade, technology ties with Israel through business forums

However, the Indian commerce minister did not specify a timeline or the key sectors that would drive this growth. While addressing mediapersons, Goyal emphasized the shared vision of both nations’ leadership in fostering economic collaboration and also reaffirmed their commitment to countering terrorism.

“We are currently at about $6.5 billion in bilateral trade, but both of us feel this is suboptimal. We don’t believe in setting low aspirations—we want to aim high and take it to 10 times the current level,” Goyal said.

He noted that the enthusiasm among businesses on both sides was “palpable and truly heartwarming,” adding that the productive dialogue during the visit laid the foundation for deeper collaboration.

“India and Israel are natural partners. We can innovate for the world and redefine how nations, industries, and entrepreneurs collaborate,” he stated.

Goyal identified the key sectors with significant potential for cooperation as deep tech, fintech, agritech, cybersecurity, defense, AI, water conservation, quantum technologies, and renewable energy.

Also read | Adani plans to invest $3 bn to kickstart semiconductor biz via JVs with two Israeli firms

He underscored India’s cost-effective innovation ecosystem, citing the Mars mission as an example of achieving groundbreaking results at a fraction of global costs. “India can do innovation at a fraction of the cost it takes in the developed world,” he said, inviting Israeli companies to partner in leveraging India’s $6 billion R&D fund approved by Prime Minister Narendra Modi.

Barkat’s visit to India, leading a high-level business delegation, comes as both countries seek to expand trade and investment partnerships.

Leading Israel’s largest-ever business delegation to any country, Barkat emphasized the complementarity between India’s scale and Israel’s entrepreneurial innovation, stating, “When you merge the two together, one plus one equals ten.”

He praised India’s transformation under Modi’s leadership, noting its emergence as a global economic powerhouse.

“India tomorrow is different than India yesterday,” Barkat remarked. He underscored the importance of strong government-to-government and people-to-people ties, which he believes lay the foundation for successful business partnerships.

Also read | India looks to boost air cargo amid Red Sea trade disruptions

Since the establishment of diplomatic relations in 1992, trade between India and Israel has seen significant growth, starting from $200 million and peaking at $10.77 billion (excluding defense) in FY 2022-23, largely driven by diamond trade. However, in FY23-24, bilateral trade declined to $6.53 billion due to regional security concerns and disruptions in trade routes. With both nations now reaffirming their commitment to economic cooperation, the focus is on strengthening commercial ties and enhancing investments in technology, innovation, and manufacturing.

The India-Middle East-Europe Economic Corridor (IMEC) is designed to connect key countries across South Asia, the Middle East, and Europe, enhancing trade and economic cooperation. 

The corridor will begin in India and extend to the United Arab Emirates before passing through Saudi Arabia, Jordan, and Israel. From Israel, the route will link to Greece, serving as the entry point to Europe, with potential connections to Italy and other European nations through existing transport networks. IMEC is expected to reduce transit time, lower logistics costs, and strengthen economic ties between Asia, the Middle East, and Europe.

And read | India-Oman free trade deal likely to be signed soon, say officials