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By the financial year 2022-23, the trade reached approximately USD 10.77 billion (excluding defence), with India enjoying a trade surplus.
Israel’s Economy and Industry Minister Nir Barkat has pointed to his country’s focus on increasing trade ties with India, the world’s 5th largest economy.
From a modest beginning of around USD 200 million in 1992, primarily focused on diamonds, the bilateral trade has expanded dramatically. By the financial year 2022-23, the trade reached approximately USD 10.77 billion (excluding defence), with India enjoying a trade surplus.
Speaking in New Delhi, earlier this week, he said, “We have interesting ideas, how to align interest. In India you have more and more global outsourcing to India. I would propose to create a foundation, a free trade agreement, that can complement specific values India can bring to Israel. You will see significant increased growth in commerce between the two countries. I see it as an entrepreneur.”
Israel has turned to India to address labour shortages, especially in the construction sector, following the suspension of work permits for Palestinian workers due to security issues related to the Israel-Hamas conflict in Gaza.
“1,75,000 employees we need from abroad…We pay much higher, we want more labour to Israel,” Barkat pointed out, indicating a clear avenue where India could step in. He suggested a model where India’s burgeoning tech talent could be utilized. “We can outsource a lot of jobs to India, on the tech side, this is of high interest to India. You can have tens of thousands of employees working here, in your own ecosystem,” he envisioned.
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As of October 2024, there are around 32,000 Indian workers in Israel, out of whom approximately 12,000 Indians arrived in Israel after October 2023, both under the G2G route and through private channels.
As per the Framework Agreement and Implementation Protocols signed with Israel, Indian workers shall enjoy equal treatment with respect to labour rights as Israeli citizens and shall be provided with proper lodging, medical insurance, and relevant social security coverage.
Israel’s minister of economy and industry, during his visit to New Delhi, articulated how his country sees India ties.
“When (Indian Prime Minister Narendra) Modi comes up and says we are behind Israel, that is a big help, we don’t take that for granted,” Barkat emphasized. India was the first country to come out and condemn the October 7 terror attack in Israel last year.
Sidhant Sibal
Sidhant Sibal is the principal diplomatic correspondent for WION. When he is not working, you will find him playing with his dog.