Manufacturers' Association of Israel signs MoU with Indian industry body CII eyeing boost in trade

New Delhi [India], May 9 : The Manufacturers' Association of Israel (MAI) concluded a cooperation agreement with the leading business body - Confederation of Indian Industry (CII) - eyeing a boost in trade between India and Israel in fear of the shrinking global economy.

MAI signed an MoU on Tuesday with CII, a representative business orgsation of 9,000 direct members. The MoU's primary aim is to facilitate through cooperation between the business orgsations, a significant increase in the volume of trade between the two countries, which currently stands at 8.5 billion.

MAI Ron Tomer signed a memorandum of understanding (MOU) with CII President Rakesh Bharti Mittal, to promote cooperation and create cross-border business opportunities between the countries.

The primary objective of this agreement is to significantly increase the volume of trade between the two nations, which currently stands at USD 8.5 billion. The agreement was signed in the presence of Israel's Foreign Minister Eli Cohen, India's Water Minister Gajendra Singh Shekhawat and Israel's Ambassador to India, Naor Gilon.

This agreement holds tremendous significance for the commercial relations between the two countries, considering that CII is not only India's leading and most prominent business body but also represents over 9,000 Indian compes across the nation, according to a statement from CII.

Additionally, it encompasses an additional 300,000 subsidiary members through regional branches, collectively employing millions of individuals throughout the country.

Furthermore, the importance of the relationship between MAI and CII is projected to expand even further, as India's population has surpassed China's this year for the first time in accordance to official UN data, making India the most populous economic power globally, according to the statement.

In Israel, the Manufacturers' Association of Israel (MAI) represents over 2,000 leading industrial and hi-tech compes in the economy, collectively providing employment to around 500,000 workers.

According to the statement, the agreement between the parties has now come to fruition after a lengthy process of fostering commercial relations between India and Israel. During this period, the volume of exports and imports between the two countries has nearly doubled over the past five years, rising from about USD 4.7 billion dollars to USD 8.5 billion.

Furthermore, the two nations are currently engaged in negotiations for a free trade agreement, and India stands as Israel's largest trading partner in Asia, according to the statement. However, when considering the overall volume of exports and imports of Israel, which amounts to USD 316 billion annually, the current trade volume between the two countries, totalling USD 8.5 billion, represents a relatively modest percentage yet.

In this regard, the agreement is anticipated to bolster investments and business connections between India and Israel. It aims to establish a framework that will facilitate future business collaborations and substantially enhance the volume of trade between the two countries.

The agreement also sets the stage for initiatives that foster mutual cooperation, create investment and trade opportunities, and facilitate the exchange of relevant information. It encompasses activities such as contacting and attracting compes to India and Israel, hosting joint events, and supporting visits by government and industry representatives from India to Israel, as well as Israelis in India.

The President of MAI Ron Tomer said: "I am happy and proud to sign a historic MoU agreement with my honorable Indian colleague, Mr Rakesh Bharti Mittal. This agreement represents another significant step in strengthening the commercial ties between the two countries, with our goal being to double trade between them. It's important to remember that the economy in Western countries is shrinking, so new opportunities lie in countries like India. Therefore, from this perspective, this agreement serves as an important "contingency plan" for Israeli exporters who are seeking to develop into new markets."

Tomer is also the chairman of the president of Israeli Employers and Businesses Orgsations (IEBO).

Tomer said, "Additionally, India is not only a true friend of the state of Israel but also an industrial and agricultural powerhouse that is constantly growing, creating almost unlimited potential for commercial and economic relations between our nations. India has much to contribute to the State of Israel, and vice versa."

Already today, he said there is significant trade between the two countries, which is expected to become even more significant and extensive in the future.

"We have already observed a substantial increase in the adoption of Israeli technologies in India's industrial and automation processes in recent years. This includes the utilisation of Israeli software for production management and advanced cyber protection," Tomer said, adding, "I firmly believe that this trend will continue to intensify, accomped by the adoption of products from other industrial sectors in Israel to further contribute to the country's development."

CII President Rakesh Bharti Mittal is also one of the prominent businessmen in India. Mittal's fortune is estimated by Forbes to be around 4.1 billion dollars, and he leads the largest telecom corporation in India, serving over 500 million subscribers in East Asia and India.

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