The visit follows Indian Trade Minister Kamal Nath's visit to Israel last November, when a joint study group was established to boost trade between the two countries to $5 billion by 2008. In 2005, there was $2.4 billion in trade – an increase of 10% over the previous year.
Yishai said that the study group set up to examine the issue recommended that a preferential trade agreement between the two nations be set up. He plans to turn the findings into concrete steps in his upcoming visit to Israel's ally.
“There is a huge trade potential between the two countries," Yishai said. He will depart for India on December 3, accompanied by over 50 Israeli entrepreneurs.
The trade agreement would create closer cooperation between the two countries’ customs authorities, create standardized protocols, create direct financial links and conduct joint research and development.
The State Bank of India recently opened a branch in Israel, in the diamond exchange in Ramat Gan.
Yishai will be meeting with several Indian government ministers and visiting Delhi, Mumbai, Vadodara and Goa – where he will also visit a drug treatment and rehabilitation center that treats Israeli travelers in the region. The center was launched six months ago with the help of Israel’s anti-drug authority, in an attempt to combat the phenomenon of young Israelis getting hooked on drugs during their post-army backpacking trips through the Far East.