bangalore, india | Israel will sign an agreement with the Indian state of Karnataka to cooperate in the fields of high-tech, biotech and infrastructure, Industry, Trade and Labor Minister Ehud Olmert announced last week.
Karnataka’s capital, Bangalore, is one of the fastest-growing technology hubs of the world. Karnataka, which is one of the 28 states in the Indian federation, is 10 times larger than Israel, with 60 million inhabitants in an area of 80,000 square miles. Some 500,000 people are employed in high-tech in Bangalore, making it the second-largest global high-tech center, after Silicon Valley.
Olmert, who headed a delegation of 100 Israeli businessmen visiting India, said that as part of the agreement Israel will offer tax benefits and provide assistance to Indian businessmen in connecting with Israeli counterparts. The two sides have agreed to cooperate on research and development and the coordination of benefits for mutual investments.
Speaking to Indian businessmen, Olmert said, “Let’s combine the technological and entrepreneurial skills of India and Israel. Together we can compete against international giants.”
P.G.R Sindhia, Karnataka’s minister of large- and medium-scale industries, told The Jerusalem Post that a memorandum of understanding will be signed in the near future. The minister added that he intends to bring a high-level business delegation to Israel early next year. The mission is expected to be headed by Karnataka’s chief officer.
“I believe that an agreement for an exchange of technologies will go into effect in 2005,” Sindhia said. “It will benefit both sides.”
Sindhia said he admires Israel and is astonished at Israel’s achievements in the field of agriculture.
“The agreement is of great importance,” said Olmert. “On the backdrop of a changing regime here, the signing of an agreement with the most relevant state is very valuable.”
Olmert has visited the headquarters of Indian giant software companies Infosys and Vimpro and the new building of Israel-based Ness Technologies, which employes some 1,350 software experts in Bangalore. The CEOs of Vimpro and Infosys promised to visit Israel, and Olmert said Israel will offer them the opportunity to set up joint research and development funds.
With an average salary of some $450 a month, an Indian software engineer costs significantly less than his Israeli counterpart.
“If we can cooperate with these companies, we can form an infrastructure that will create jobs in both countries,” Olmert said. “We have to create a platform in which the relative advantage of each side is expressed.”