CHENNAI: A free trade pact with India and an agreement for joint research and development in civilian areas with Tamil Nadu are two initiatives that Israel is looking forward to in a bid to boost bilateral ties.

In remarks here on Monday, the Head of the Economic Division at the Embassy of Israel Zakhi Selzer said discussions were in progress between the two countries on a preferential trade agreement and said they would eventually lead to the two countries signing a free trade agreement.

"There has to be an FTA ... very soon," he told a meeting organised by the Southern India Chamber of Commerce and Industry (SICCI).

Underlining the potential to achieve a four-fold increase in the bilateral trade, which stood at $2.4 billion last year, in the next few years, he said no other country was as important as India for Israel from a trade perspective.

But for that to happen there should be no barriers between the two countries.

Noting that India was its second largest trade partner in Asia, after China, Mr. Selzer said India could be "our biggest" trade partner.

The recent agreements between India and Israel for joint research and development in science and technology, industrial areas, and in agriculture should push this process forward, he said.

In the next phase, Israel was interested in signing R and D agreement with Indian States, similar to those it had with the US, Australia and China.

"We would like to sign [an agreement] with the Government of Tamil Nadu," he said.

He pointed out that Tamil Nadu and Israel could cooperate in the areas of water technology and agriculture, and allow their engineers to jointly develop new products and solutions in other fields.

Industry delegation

An industry delegation from Israel focusing on water technology and environment management would be visiting South India in March next year.

Mr. Selzer described Tamil Nadu as the most important State for Israel in promoting the economic ties with India.

SICCI executive committee member Vijay Kumar Bafna said though there had been considerable improvement in the trade ties between the two countries it was still below potential.

Israel, he said, was a pioneer in the field of medicine, plant tissue culture, drip irrigation and floriculture and India should explore the possibility of enhancing trade in these areas.

The chamber would be happy to assist in accelerating the bilateral trade and investment.

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