Business Guide | Israel-India 2022

14.5% 11.3% 10.9% 12.1% 11.9% 11.6% 11.6% 13.2% 12.2% 15.5% 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% India Japan South Korea Taiwan Hong Kong Distribution of Export by Countries’ Share | 2012-2021 3 גרף 1,317 1,094 993 1,335 1,150 947 1,172 1,249 1,154 1,739 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Scope of Export to India | 2012-2021 (In USD Millions) *Excluding diamonds Export of Goods to India Exports to India are characterized, as stated, by significant year-to-year fluctuations. Thesefluctuations stem from the composition of the export, the type of products and the goods that are exported to the country. A prominent example of this would be the demand for electrical machinery and equipment and optical tools and equipment. Another example was the sharp rise inweapon exports that was reflected in 2021 . Thiswas also the casewith the export of refined petroleum products. Following the rise in exports to India over 2018 - 2019 , in 2020 a fall of around 8 % was seen in the export of goods, amounting to around 1 . 15 billion dollars, but 2021 , as stated, saw a significant recovery in exports, increasing by 51 %compared to the previous year and reaching a record high of 1 . 74 billion dollars – an all- time high. After India’sweight of exports inAsia already reached 14 . 5 % in 2012 , from 2013 onwards the trend of exports to India out of the total exports to Asia remained at a stable rate of 12 %. As a result of the significant rise in exports in 2021 , India’s portion of exports in Asia grew to 15 . 5 %. India is currently Israel’s 2 nd largest export destination in Asia. In comparison, India’s portion as an export destination for Israel in relation to the rest of the world remained moderate in the last 10 years (an average of 2 . 6 %) and reached a maximum of 3 . 4 % in 2021 . Segmentation of Israeli Exports to Asia According to the average of exports between 2016 and 2021 , the principal export to India is machinery and electrical equipment, accounting for around one-third of the average annual scope of export over the last 6 years. Other principal export sectors are optical equipment and tools ( 15 %), fertilizers ( 12 %) andmachinery andmechanical equipment ( 9 %). These four sectors make up around 70 % of Israel’s total exports to India. The increase seen in 2021 arises primarily from increased demand for goods in the aforementioned sectors. The export of machinery and electrical equipment saw an increase of 23 %compared to the previous year, amounting to a total of 656 million dollars. This sector has followed a trend of ongoing growth and the scope of export to India in this sector has doubled in the past 5 years. The export of optical equipment and tools has grown by 42 % to a scope of 159 million dollars; the export of various chemical products sawan increase of 59 %to a scope of 103 . 5 million dollars; the export ofmachinery andmechanical equipment grew by 50 % to a scope of 142 million dollars. In contrast, a decrease was seen in the export of fertilizers at a rate of 9 % to a scope of 102 . 5 million dollars. Scope of Goods Export to India | 2012 - 2021 (In USD Millions) Distribution of Export by Countries’ Share | 2012 - 2021 19