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NASSCOM signs software pact with Israel

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CIOL Bureau
New Update

India and Israel signed

a Memorandum of Understanding (MoU) to increase cooperation in the IT

software and services sector. This MoU was signed at Tel Aviv, Israel by

NASSCOM President Dewang Mehta alongwith IASH (Isreal) Chairman

Amiram Shore.

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According to this agreement, both countries will

establish a Joint Council of cooperation consisting of representatives

of Government, industry and academic institutions. The agreement

envisages exchange of business delegations, cooperation in R&D and

also facilitation of joint marketing activities, joint ventures and

strategic alliances between India and Israel in the software sector.

It was pointed out by Mr. Mehta that Nasscom’s

protocol of cooperation with IASH was a part of agenda charted out by

Government of India to increase business cooperation with Israel,

especially in the area of software as it is a strength area for both

countries.

Indian software industry earned revenues of US $

3.9 billion in the year 1998-99, with exports accounting for US $ 2.65

billion. During the same period, Israel software and services industry

posted revenue of US $ 1.5 billion, with exports of US $ 500 million.

However, the trade between two countries has not been very high. The

Indian - Israeli trade in software in 1997-98 was estimated at Rs. 30

crore. Mr. Mehta said, "With the signing of this agreement, we

expect India-Israel trade in software and services to increase

exponentially and reach an annual revenue of Rs. 250 crore (US $ 50

million) in the next two years."

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