The government of the Indian state of Karnataka, in which the Bangalore high-tech center is located, is expressing interest in the purchase of technologies for recycling solid municipal waste, and producing electricity from it. Representatives of Bangalore-based companies participated in a joint seminar for Indian businesspeople, and Israeli businesspeople in the delegation visiting India led by Minister of Industry, Trade, and Labor Ehud Olmert. They expressed interest in buying such technologies from Israeli companies, and having Indian concerns operate the technologies.
The Indian businesspeople also expressed interest in cooperating with Israeli companies in setting up solar power stations in cooperation with local Indian companies, and in constructing a network of toll roads in Bangalore with financing from the World Bank and the Asian Bank.
Olmert met with Indian Minister of Finance Shri P. Chidambaram in New Delhi to discuss key economic reforms being implemented and planned in the two countries, and a possible deepening of economic ties.
The two men discussed increasing cooperation between Israel and India in high tech, and expanding cooperation between Israeli and Indian companies on projects in third countries. They also discussed the inclusion of Israeli companies in government projects in India financed by the World Bank. The World Bank allocates $1.6 billion annually for projects in India.
Olmer met today with Indian Minister of Commerce & Industry Shri Kamal Nath. They agreed to begin negotiations for a commercial cooperation agreement in mid-2005. Israel expects the agreement to include a financial protocol, and address protection of investments and customs duties problems. The main customs duty issue raised by Olmert in his meetings with Indian ministers was a 5% duty on Israeli polished diamond exports to India, which denies access to India for Israeli exports. Israeli exports of polished diamonds to India total $15 million a year, compared with annual imports of $700-750 million.
Published by Globes [online] - www.globes.co.il - on December 8, 2004