A joint council will soon be established by the two countries to promote exchange of business delegations, cooperation in R&D and facilitation of joint marketing activities, joint ventures and strategic alliances between India and Israel in the software sector. The council will consist of government representatives, industry and academic institutions.

A memorandum of understanding (MoU) to this effect was signed between the National Association of Software and Services Companies (Nasscom) president Dewang Mehta and Israeli Association of Software Houses (IASH) chairman Amiram Shore in Tel Aviv last week.

Over the years, Israel has established a very high linkage between its defence and IT industries which has resulted in world-class defence IT products.

The MoU is part of an agenda charted out by the Indiangovernment to increase business cooperation with Israel, especially in software as it is an area of strength for both countries.

Mehta felt India could gain a lot by emulating Israel and benefit from Israel's expertise in creating the original technology, especially in defence and banking areas. "India has a global leadership in providing software services and customised solutions whereas Israel has made its mark by developing state-of-the-art technologies, products and packages. Thus, we have a complementary and win-win situation between India and Israel in the software sector," he said.