Ajay Srivastava, co-founder of think tank Global Trade Research Initiative (GTRI), said trade may be seriously hit if operations at the three largest ports of Israel—Haifa, Ashdod and Eilat—are disrupted.
India trade with Israel occurs mostly through Eilat port, located on the Red Sea.
Fortunately, so far there is no report of port disruption and the true impact will depend on the duration and intensity of the war, Indian media reports said quoting Srivastava.
Total bilateral trade between both sides in fiscal 2022-23 was estimated to be worth $12 billion. India's merchandise exports and imports from Israel during the fiscal were $8.4 billion and $2.3 billion respectively, leading to a merchandise trade surplus of $6.1 billion.
Apparel exports from India to Israel in the period from January to July 2023 accounted for $53.573 million and fibre exports were recorded at $4.09 million. Furthermore, fabric and yarn exports to Israel were valued at $11.18 million and $10.66 million respectively. The period also witnessed footwear exports worth $6.81 million, according to Fibre2Fashion’s market insights tool TexPro.
In 2022, India’s apparel exports to Israel stood at $86.455 million, followed by yarn at $23.955 million, fabric at $20.566 million, and fibre at $10.93 million. Additionally, India also exported footwear valued at $10.93 million to the Middle Eastern nation, as per TexPro.
Israeli firms invested $286 million in India between April 2000 and June 2023. Israeli enterprises have invested in India in renewable energy, real estate and water technologies and are also setting up research and development centres and production units in India.
Both nations are also negotiating a free trade agreement.
ALCHEMPro News Desk (DS)
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