Produced by: Tarun Mishra
Designed by: Mohsin Shaikh
The recent and unexpected multi front attack on Israel by Hamas, the governing authority in the Gaza Strip, has escalated the Israel-Palestine conflict
While experts anticipate that Indian exporters may experience reduced profit margins due to the ongoing conflict, they believe that trade volumes will likely remain stable unless the situation in the region worsens significantly
In response to the heightened geopolitical risks, Indian exporters shipping goods to Israel may be confronted with increased insurance premiums and elevated shipping costs, potentially impacting the overall cost-effectiveness of their trade operations, reported PTI
India's Export Credit Guarantee Corporation (ECGC), a government-owned entity, may find it necessary to impose higher risk premiums on Indian firms engaged in exports to Israel. This measure could potentially affect the competitive edge of these businesses in international markets
Sharad Kumar Saraf, the founder chairman of Technocraft Industries India, acknowledges that there is a discernible short-term impact on Indian exporters. However, concerns linger about the potential for a more adverse impact if the conflict escalates further
The outlook for India-Israel trade hinges significantly on the operational status of Israel's three largest ports: Haifa, Ashdod, and Eilat. Eilat, the primary passage for India-Israel trade, has not reported any disruptions thus far, offering a degree of stability to the trade relationship
India-Israel trade encompasses both merchandise and services, with a combined estimated value of $12 billion in 2022-2023. Notably, India maintains a merchandise trade surplus with Israel
The trade basket includes Indian exports such as diesel and cut and polished diamonds, and imports of rough diamonds and electronic components. These commodities play vital roles in shaping the trade balance between the two nations
India and Israel share diverse collaborations, ranging from IT services, agriculture, water technology, and renewable energy. The two nations are also active partners in the field of medical innovation
India's economic ties with Israel extend to the presence of Indian companies like Sun Pharma, Tata Consultancy Services, and Wipro in the Israeli market. Simultaneously, Israeli companies have invested in India, particularly in sectors such as renewable energy, real estate, and water technologies. Israeli firms have demonstrated their commitment by establishing research and development centers and production units in India, with foreign direct investment (FDI) reaching approximately $286 million between April 2000 and June 2023