Israel to release $25 million for R and D

Bangalore, Sep 15: The Israel Government will release US Dollar 25 million for taking up Research and Development activities in the field of Information Technology, bio-technology and hi-tech field, Consul General of Israel to India Daniel Zohar Zonshine has said.

Addressing members of the Federation of Karnataka Chamber of Commerce and Industry here last night, he said the amount was made available under the Special Research and Development Agreement reached with India in 2005 when the then External Affairs Minister Kapil Sibal visited Israel.

Calling upon the members to utilise the opportunity for setting up R and D establishments in Israel, the envoy said the amount under the agreement, which was just one million Dollars initially, had now been scaled up to 25 million Dollars due to good response.

Mr Zonshine said trade relations between India and Israel have touched 2.5 billion Dollars in 2005 from less than 200 million Dollars in 1992. ''While in the early part of the trade relations, the accent was on diamonds, followed by agriculture, now there is flourishing trade in hi-tech, software, telecommunications, biotechnology, medical equipment, machinery, chemicals and pharmaceuticals, among others,'' he added.

Stating that India was now Israel's ninth largest global trading partner and second largest in Asia, he said India was rated as the second most attractive destination for investment according to the World Investment Report 2005 of UNCTAD.

Mr Zonshine said Israel, with approved investments of approximately one billion Dollars for around 100 proposals, was the 14th largest foreign investor in India. Since 1991, over 80 technology collaboration agreements have been approved between Indian and Israeli companies and several were in the pipeline.

''With new initiatives taken by both the Governments to promote bilateral trade and investment, we will see an increasing number of companies from both our countries engaging in joint ventures and other business cooperation agreements for enhancing their business operations,'' he added.

Mr Zakhi, Commercial Attache, Embassy of Israel, New Delhi, said Israeli economy was dynamic, export-oriented, R and D-driven and hi-tech based and its GDP had touched 123 billion Dollars in 2005 and per capita GDP was 17,900 Dollars, an increase of 3.3 per cent in 2005.

The dignitaries were here to invite industries in Karnataka to participate in 'Telecom Israel 2006', an exhibition on telecom products scheduled to be held in Tel-Aviv, Israel, from November six to eight.

UNI