The industry’s total value reached $10. 5 billion in a four-quarter rolling period in June 2023, up from $5. 5 billion in the same month in 2019, according to a Business Standard data study by the Indian Economic Monitoring Centre (CMIE).
A four-quarter rolling number provides a figure comparable to other time periods.
The 93%, consistent with the accumulation of pennies, has also made the balance of industry, the difference between imports and exports, more favorable to India.
India’s exports to Israel exceed imports by approximately $1. 9 billion in June 2019.
Exports exceeded imports by $5. 7 billion in June 2023.
India’s imports from Israel have largely stagnated over the past decade.
It stood at $2. 5 billion in the four quarters ending June 2013, compared with $2. 4 billion in an era ending in June 2023.
Trade is largely driven by exports.
Much of this accumulation occurred in the aftermath of the Covid-19 pandemic.
In June 2019, it held steady at 2013 degrees of $3. 7 billion.
The composition of exports shows that all segments experienced equivalent growth.
The volume of manufactured goods exported to Israel increased by 30. 5% to $2. 6 billion in June 2023, over a consecutive four-quarter period.
The percentage of agricultural and similar products, such as ores and minerals, remains negligible.
Exports of oil and crude oil increased.
India’s oil and crude exports increased by 245% to $5. 3 billion in June 2023.
They accounted for 65. 2% of total exports to Israel in June 2023.
Key segments with exposure to Israel include gems and jewelry ($1. 2 billion in exports) and engineering products ($455 million in exports), in the industry during the 4 quarters ending in June 2023.
India also exported $127 million worth of textiles to Israel in this period.
Exports of medicines, prescription drugs and fine chemicals accounted for $96. 8 million, while total exports of chemicals and similar products accounted for $282 million.
India and Israel have long negotiated a flexible industrial agreement (FTA).
The first of the discussions took a position in 2010.
There will be at least 8 rounds in the following years.
The industrial deal is under scrutiny at the moment.
Sources familiar with the matter said talks on an industrial deal had not progressed because Israel was unwilling to offer greater access, especially for the sector.
India is basically pushing for greater mobility of data generation (IT) professionals.
Goods were not the main target, as price lists in West Asian countries are not too high anyway, meaning that the deal would not have brought huge profits to New Delhi.
According to Ajay Srivastava, founder of the Global Trade Research Initiative (GTRI) think tank, Indian exporters could face risk premiums and higher shipping costs, which could cut into their profits but would not have an effect on industry volumes unless the war intensifies.
“War may lead to an increase in insurance premiums and shipping costs.
“India’s ECGC could simply impose higher risk premiums on Indian corporations exporting to Israel.
“Trade could be seriously affected if operations are disrupted in Israel’s three largest ports, Haifa, Ashdod and Eilat.
“Merchandise trade between India and Israel is basically done through the port of Eilat on the Red Sea.
“Fortunately, no port disruptions have been reported so far,” Srivastava said in a report, adding that the actual effect will depend on the duration and intensity of the war.
The main exchanges between the two countries come from data technology.
India is Israel’s seventh spouse in the world.
It ranks 30th among India’s trading partners and accounts for about 1 percent of trade, even after the recent surge.