Soft-spoken Ramesh R Taskar senior trade representative at the Israeli consulate in Mumbai, welcomes you into his office in south Mumbai, apologising profusely for the heavy routine security check for first-time visitors. There is a huge sheaf of papers on his desk that relate to trade enquiries from both sides that are being processed and many of them have little to do with agriculture, which was the first major commercial sector that the Israelis entered."Even today, we give technical knowledge to Indian projects in horticulture, floriculture, mushrooms, drip irrigation and other agro-related activities, but both sides have today realised there are other important sectors to explore." For instance, in floriculture, Israeli farmers exported planting materials, green houses and drip systems to many entrepreneurs in western and southern India.
Indo-Israel bilateral trade has jumped from $357.2 million to $636 million since 1993 with the balance of payment in favour of Israel. Taskar lists electronicsand telecom, chemicals, phosphates, cosmetics (based on the healing properties of the Dead Sea mud), dairy and industrial products (like desalination plants), food processing, medical diagnostics and laser printing technology as emerging areas of cooperation.
The main bilateral agreements between both governments on commercial activity cover trade and economic activity, promotion and protection of investments, convention for the avoidance of double taxation and prevention of fiscal evasion with respect to taxes on income and capital.
Commenting on the non-traditional sectors, Taskar predicts that cosmetics for one will become a major export from Israel. Another area that Israel foresees opportunity is in electronics components. Taskar points out that estimated production of electronics components in India for 2001-2 is projected at $3.9 billion while corresponding demand is estimated at $6 billion.
"The company will require to import almost 45 per cent of its electronics components every year for thenext five years."
Another change very gradually reflected in bilateral trade is the shift from pure consultancy and fee-based projects to equity participation despite an innate unwillingness to locate projects outside the home country.
"Indians are now looking beyond buying and selling opportunities with their trading partners. Instead they are demanding more in the form of joint ventures and collaborations too. Israeli firms too are slowly realising the ground realities that a deeper level of commitment is being called for."
Now a few consultants are willing to plough back their technical fees through equity in joint ventures in India. Not doing so would mean losing existing and potential markets, says Taskar. An MBE, Taskar took on his present assignment eight years ago after a long stint with the British High Commission.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
