High Israeli investments in India's agri sector possible: IICCI

Israeli investments to India could increase manifold in the near to mid-term future if the two nations enhance cooperation in agriculture and allied activities, industry body IICCI said.

According to latest data of the industry ministry, the total foreign direct investment (FDI) from Israel in India during the 10 years since 2000 was a measly $52.2 million.

Indo-Israel Chamber of Commerce and Industry (IICCI) called upon the state governments to use Israeli expertise, which turned the dry Negev desert  (in Israel) into a breadbasket, for increasing agricultural productivity.

"Israel changed the barren sands into lush field of agricultural plenty, and is now considered the leading technology power in the sector", IICCI director S S Sharma told PTI on the sidelines of the  ongoing FarmTech 2011 agriculture summit here organised by industry body PHD.

"Many Indian states are still low in per hectare productivity and can gain expertise from Israel," he said.

Sharma said state governments and Indian firms can gain a lot by inviting Israeli investment in the agri sector, including setting up joint research centres and venture companies.

"Israeli investment could grow substantially if states and industry in India seek expertise from that nation. The cooperation could grow much beyond areas like defence", he said.

Sharma suggested the case of China where Israeli investments have crossed the $130 billion mark.

IICCI is in talks with agricultural departments of different states to facilitate Israeli expertise, he said.

"This is a win-win situation for both countries. We could gain necessary expertise in a crucial sector like agriculture where growth has been slow, while the Israelis are desperate to invest money abroad and what better market than India," he added.

Agriculture plays an important role in India as about 60% of the population is dependent on it for its livelihood and the sector contributes 16-17% to the country's GDP.

States like Madhya Pradesh have an average productivity of 1,500 quintals per hectare, far less than the global average of 1,800 quintals.