Country Profile: Israel
Israel is located in the Western Asia, close to Mediterranean Sea. It is a developed country with a very high HDI. The United Nations Development Programme ranks Israel 22nd in terms of Human Development Index with the value of 0.903. It is ranked 45th in ‘Ease of Doing Business’ by World Bank released in 2018.
As per World Economic Outlook Database, 2018 estimate Israel is ranked 54th in world in GDP in PPP terms at a value of US$ 353.65 billion while ranked 32nd in GDP in nominal terms at a value of US$ 390.66 billion. The per capita GDP of Israel in PPP terms is estimated to be US$ 39106 and in nominal terms it is estimated to be US$ 43199 in 2018 by World Economic Outlook Database.
In 2017, Israel imported US $ 69.12 billion worth of goods. Its export was over US $ 61.15 billion in value in 2017.
The top trading partner of Israel is USA, followed by China and United Kingdom. India is ranked 10th in the list of top 10 trading partners of Israel, it has a import from Israel of worth US$ 1.99 billion and a significant export value of US$ 3.26 billion from India to Israel, resulting into a trade surplus of US$ 1.27 billion for India.
ISRAEL’S MERCHANDISE TRADE WITH WORLD
Israel’s exports to the world and imports from the world have a skewed pattern especially with countries such as China, Switzerland and Germany from which the imports to Israel are very high at the same time it maintains disproportionately high exports to USA. The country has maintained a trade deficit over the decade 2008-2017 except 2009 and 2015. In 2015 it had the highest trade surplus in the decade valued at of US $ 1.99 billion.
ISRAEL’S EXPORT TO THE WORLD
Israel’s total export in 2017 amounted to US $ 61.15 billion. Diamonds, pharmaceuticals and electronics are the primary export products of Israel. Its top export product at HS-6 digit level last year was Worked Diamonds, Medicaments -prophylactic, Non-industrial Unworked sawn diamonds, Electronic integrated circuits and Parts of aeroplanes or helicopters. These products constitute 43% of the total export basket of Israel, i.e. its export basket is highly skewed.
ISRAEL’S IMPORTS FROM THE WORLD
Israel’s import basket is primarily led by Crude Petroleum oils, Non-industrial unworked diamonds, Worked, unset diamond, Medium oils and Machines for manufacture of semiconductor devices which together make up the Top 5 imports of Israel. The import basket is primarily dominated by petroleum oil and diamond.
INDIA- ISRAEL MERCHANDISE TRADE
India consistently maintained a trade surplus with Israel since 2010. Surplus reached the highest in 2013 with a value of US$ 1.71 billion. Trade balance between saw an upsurge in favour of India from 2010 to There is no trend between India and Israel in terms of trade balance except that it has remained in favour of India in the last decade.
INDIA’S EXPORT TO ISRAEL
India’s total exports to Israel amounted to US $ 3.26 billion in 2017. Its top five exports at HS-6 digit level were Medium oils and preparations, Worked, unset Diamonds, Parts of machinery, Parts of aeroplanes or helicopters and Unworked Non-industrial diamonds.
INDIA’S IMPORT FROM ISRAEL
India’s total import from Israel in 2017 was US $ 1.99 billion. India’s import was dominated by Non-industrial unworked diamonds, Potassium chloride for use as fertiliser, Machines for the reception, conversion and transmission or regeneration of voice, Worked Diamonds and Herbicides – anti-sprouting products.
Israel is an important focus of India’s current foreign policy. Between April 2000 and March 2017, cumulative foreign direct investment (FDI) from Israel to India reached US$122 million. While official data about India’s investment in Israel is not available, significant investments from India in Israel include acquisition of Israeli drip-irrigation company Naandan by Jain Irrigation, Sun Pharma’s 66% stake in Taro Pharmaceuticals, Triveni Engineering Industries investment in Israeli Aqwise Company, and others. In 2017 the two countries launched India-Israel Industrial R&D and Technological Innovation Fund (I4F), which comprises contribution of $20 million each from both countries, to promote research in futuristic technologies. A ‘Trilateral Fund’ of $50 million has also been created by Israel-India Technology Group (I-ITG) to promote entrepreneurship and trilateral business opportunities between the US, India and Israel.
Israel is venturing into less explored areas of cooperation in India such as oil and gas, cyber security, films, and start-ups. India should focus on harnessing the expertise of Israel in agricultural technology to address the farm distress issue India is grappled in.