Since the establishment of diplomatic relations between India and Israel in 1992, bilateral trade and economic relations have progressed rapidly. From a base of US$ 200 million in 1992 (comprising primarily of diamonds), merchandise trade has diversified and had increased sharply reaching US$ 4747.1 million in 2010 (an increase of 59.92% compared to 2009, US$ 2968.3 million).
In 2010, India stood at the sixth place in terms of Israel’s trade partner countries and the third largest trade partner in Asia after China and Hong Kong (trade data includes diamonds) and remained a ‘focus’ country of the Israeli Government for increased trade effort. In 2010, India was ranked 9th largest import source of Israel including diamonds, and 14th largest import source excluding diamonds. In addition, India was ranked 4th largest export destination of Israel (including diamonds) and 5th when excluding diamonds (in Jan-Dec 2010). While India’s exports to Israel in areas other than diamonds have increased over the years, Diamonds still constituted around 49% of the bilateral trade in the year 2010.