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.
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."