Israel vs India: A comparison of economic development in last 70 years
The Republic of India and the State of Israel enjoy an extensive economic relationship which has grown exponentially in the last 70 years of robust association. While India became independent in 1947, Israel achieved freedom in the year 1948.
As of 2014, India is the third-largest Asian trade partner of Israel, and tenth-largest trade partner overall. Relations further expanded during Prime Minister Narendra Modi's administration.
Here we are comparing both countries on these basic economic indicators:
1) GDP (per capita):
Israel's GDP per capita stands at $39,125 (nominal; 2017) and $36,378 (PPP; 2017). India's GDP stands at $1,850 (nominal; 2017) and $7,153 (PPP; 2017).
2) Global Innovative Index (2017):
While Israel ranked 17 on the Global Innovation Index (2017) rankings, India stood at 60.
3) Human Development Index (2016):
According to the UN Development Programme’s Human Development Report 2016, released, India ranks 131 of 188 when it comes to the Human Development Index (HDI). Israel stands at rank 19.
Israel was India's 38th-largest trading partner, with trade of $5.02 billion (Rs 33,634 crore) in 2016-17, down 18 per cent over 2012-13. The trade balance stood in India's favour at $1.10 billion (Rs 7,370 crore) in 2016-17.
Mineral fuels and oils are India's leading export to Israel, worth $1.01 billion in 2016-17.
India's major imports from Israel in 2016-17 included natural or cultured pearls and precious stones, worth $1.11 billion.
5) Ease of doing business:
India stands at 130 in terms of ease-of-doing-index as per World Bank group rankings and Israel lies at 52nd position.
As per International Labour Organisation (2017), India's unemployment rate is 3.4 percent and Israel's is 4.3 percent.
7) Trade balance:
From US$ 200 million in 1992 (comprising primarily trade in diamonds), bilateral merchandise reached $ 5.19 billion in 2011. Since then, it has, however, stagnated around $ 4 - 4.5 billion with bilateral trade (excluding defence) for 2016 being $ 4.16 billion. Though trade in diamonds constitutes more than half of bilateral trade, trade has diversified in recent years to include sectors such as pharmaceuticals, agriculture, IT etc. Major exports from India to Israel include diamonds and metals, chemical products and textiles. Major imports by India from Israel also include diamonds and metals, chemicals (mainly potash) and machinery and transport equipment. Though reliable figures of services are unavailable, it is estimated that almost 75 percent of bilateral trade in services flow from India to Israel.