Indian flag_311 reuters.
(photo credit: Navesh Chitrakar / Reuters)
Finance Minister Yair Lapid and Indian Communications and IT Minister Kapil
Sibal agreed in principle Monday to set up a joint fund to explore how Israel
and India can deepen hi-tech economic relations.
In an exclusive
interview with The Jerusalem Post, Sibal said the fund’s size was to be
determined, adding that India would be willing to invest $5 million and expected
that Israel would give a similar amount. The group will also seek industry
players to contribute to the fund, he said.
The purpose of the fund will
be to enhance ties between Israel’s innovative IT sector and India’s burgeoning
hi-tech manufacturing sector, Sibal said, creating an ecosystem to help navigate
trade in a variety of hi-tech areas, including security and consumer
The two countries will also form a working group, with two
representatives from each, to hammer out the details of the fund, he
“We know for a fact that Israel is one of the most innovative
nations in the world,” Sibal said. “We believe that to translate innovations
into goods and services requires the marriage of industry with
innovation. India provides an ideal environment with a low-cost
environment and a high-quality workforce.”
While Israel has the strong
innovative capacity, its small population [just over half the size of New Delhi]
means it has a limited market, Sibal said.
“We have the market and the
robust industrial sector,” he said.
Sibal also met with Economy and Trade
Minister Naftali Bennett. He is slated to meet with Communications Minister
Gilad Erdan and several hi-tech companies on Tuesday.
The full interview
will appear in The Jerusalem Post Magazine