Says Ramesh R Taskar, senior trade representative at the Israeli consulate in Mumbai, that in years to come cosmetics will become a major export item from Israel.

Another area that Israel foresees opportunity is in electronics components. Taskar points out that the estimated production of electronic components in India for 2001-2 is projected at $3.9 billion while corresponding demand is estimated at $6 billion. ``The company will require to import almost 45 per cent of its electronics components every year for the next five years.''

Both India and Israel have realised that apart from traditional items of trade, there are other important sectors to explore."Even today, we give technical knowledge to Indian projects in horticulture, floriculture, mushrooms, drip irrigation and other agro-related activities,'' says Taskar.

For instance, infloriculture, Israeli farmers exported planting materials, green houses and drip systems to many entrepreneurs in western and southern India.

Indo-Israel bilateral trade has jumped from $357.2 million to $636 million since 1993 with the balance of payment in favour of Israel. Taskar lists electronics and telecom, chemicals, phosphates, cosmetics (based on the healing properties of the Dead Sea mud), dairy and industrial products (like desalination plants), food processing, medical diagnostics and laser printing technology as the emerging areas of co-operation.

The main bilateral agreements between both governments on commercial activity cover trade and economic activity, promotion and protection of investments, convention for the avoidance of double taxation and prevention of fiscal evasion with respect to taxes on income and capital.

Another change very gradually reflected in bilateral trade is the shift from pure consultancy and fee-based projects to equity participation despite an innateunwillingness to locate projects outside the home country.

``Indians are now looking beyond buying and selling opportunities with their trading partners. Instead they are demanding more in the form of joint ventures and collaborations.

Israeli firms too are slowly realising the ground realities that a deeper level of commitment is being called for.''

Now a few consultants are willing to plough back their technical fee through equity in joint ventures in India.

Not doing so would mean losing existing and potential markets, says Taskar.