Commerce and Industry Minister Kamal Nath, left, with Israel’s Vice Prime Minister Ehud Olmert, right, as Yogendra Kumar Modi, president of the Federation of Indian Chambers of Commerce and Industry (FICCI), looks on during an India-Israel business meeting in New Delhi on Dec. 8. (Photo: AFP)

NEW DELHI: India and Israel on Dec. 8 agreed to enhance cooperation in high technology areas, including the setting up of a joint industrial research and development unit.

A “statement of intent” was signed between visiting Israeli Vice Prime Minister Ehud Olmert and Science and Technology Minister Kapil Sibal at the end of bilateral talks here on Dec. 8.

The statement envisages establishing a research and development cooperation initiative to provide support for bilateral industrial projects. “The unit will involve at least one industrial partner from each side and will aim at the development of products or processes to be commercialized in the global market,” an official statement said.

The two sides would also identify, promote, facilitate and support joint industrial research and development projects. Stating that Israel had a lot to offer in technical fields like enrichment of seeds, system of green house farming and incubators for high technology areas, Olmert invited Sibal to Israel next year to formalize the agreement.

India and Israel are currently cooperating in 37 science and technology projects. Some 200 Indian scientists visited Israel this year alone.

Earlier, Commerce and Industry Minister Kamal Nath said the bilateral trade between India and Israel can cross $5 billion over the next three years, from the $2 billion expected in 2004.

“The volume of bilateral trade had set a new record every year since 1991 when India’s trade with Israel was a mere $142 million,” the commerce minister told a meeting organized by the Federation of Indian Chambers of Commerce and Industry (FICCI) on Dec. 8.

The minister noted that India was Israel’s second largest partner in Asia and ninth largest globally, adding that product basket of bilateral trade was also expanding, even though diamonds continue to be the most important item.

He also invited the Israeli industry to invest in India and said the country not only has the most liberal policies on foreign direct investment and technology transfer, but also approves most proposals under an automatic route.