A fifth of Israel's industrial exports will go to China and India within two years, says Kost, Forer, Gabbay and Kasierer - Ernst and Young (Israel). Exporters will channel substantial resources for penetrating these markets, compared with the paucity of exporters to these countries today.
Ernst and Young (Israel) says exports to China and India will grow, even though Israeli companies have little knowledge of these markets, which are very different from the familiar Western markets. The study was carried out in advance of an international conference on export opportunities, in which Ernst & Young's senior tax experts from China and India, Peter Ni and Vijay Iyer, will participate.
Ernst and Young (Israel) chairman Yitzchak Forer warns that despite the optimistic forecast, entry into China and India was complicated, due to bureaucracy and different business cultures, as well as the need to cope with transfer costs, capital gains tax, VAT, service taxes, etc.
Forer said that success in China and India - countries with unprecedented rates of economic growth - depended on the ability to learn, and stamina. It is believed that China will be the world's biggest economy in 15 years.
Published by Globes [online], Israel business news - www.globes.co.il - on April 4, 2005