India, Israel keen on finalizing FTA

New Delhi: Israel's handing over of the strategic port of Haifa to the Adani Group is a reflection of the trust that the country has on India, Israeli Ambassador Naor Gilon said on Wednesday, over three weeks after the Indian company acquired the port.

To a question on Congress leader Rahul Gandhi's allegations of the Adani Group being favoured in India-Israel defence contracts, the envoy said at a media briefing here that Israeli companies have around 80 joint ventures with Indian companies and suggested that the defence ties are not about only one firm.

He said the Indian companies with whom Israeli firms have forged joint ventures included the Tata Group, Kalyani Kalyani Group, Bharat Electronics Ltd (BEL), Hindustan Aeronautics Ltd (HAL) and Bharat Dynamics Ltd (BDL).

"I do not see the issue here. It (joint ventures) is not Israel by the way. They are by Israeli companies. The joint ventures are not signed by Israel or pushed by Israel. The private companies are going in order to be relevant for the Indian market and they are always looking for strong and stable manufacturing partners," he said.

Describing defence ties between the two countries as very strong, he said Israel has an advantage to support India in its efforts to become self-reliant in defence manufacturing because of the "long-standing" trust in the area between the two countries.

On overall India and Israel trade ties, Gilon said both sides were keen on finalising the proposed free trade agreement (FTA) as it could further boost overall bilateral trade ties.

At the media briefing on 30 years of India-Israel bilateral ties, Gilon indicated that there could be a forward movement on the FTA during the upcoming "high-level" visits.

Israeli Prime Minister Benjamin Netanyahu is expected to visit India in the first half of this year.

On the Adani Group acquiring the Haifa port last month, Gilon said it was a sign of Israel's trust on India and it could boost bilateral trade.

"It is a landmark...the purchase of the Haifa port by Adani. I think it was a very important move from our point of view because it is a strategic asset," he said.

The fact that we are giving it to an Indian company, I think from our point of view, is very symbolic sign of deep trust (in handing over) the strategic asset in hands of the Indian company, he said.

The envoy said the Adani Group can develop the port to increase trade in the region as well as trade between India and Israel.

"I think the potential there is huge, also to help trade between our countries. And we are very happy with this," he said.

The Adani Group last month acquired the strategic port for USD 1.2 billion (around Rs 9,600 crore) and vowed to transform the skyline of this Mediterranean city as part of its decision to invest more in the Jewish nation.

The Port of Haifa is the second largest port in Israel in terms of shipping containers and the biggest in shipping tourist cruise ships.

The ambassador said the Adani Group, as part of the deal, will have money to develop the port.

"There is even money for development. It is the core business of Adani and they know how to do it. It is in the interest of the Adani Group, of Israel, of India and everyone who wants to make it working well," Gilon said.

To a separate question, he said the Adani Group is looking for projects in Israel and "I hope they succeed in also getting".

In his remarks, the Israeli envoy also said that there is great potential to expand cooperation in areas of renewable energy, smart mobility, agriculture, healthcare, water and cyber and homeland security.

Asked about the controversy surrounding the "The Kashmir Files" movie, he said it is an internal matter of India.