The volume of trade between Israel and India, including diamond exports, totaled about $ 3.8 billion in 2017, a decrease of about 9% compared to 2016, when trade amounted to $ 4.2 billion. Exports of goods to India, including diamonds, declined by 20 percent to $ 1.9 billion in 2017, while imports of diamonds, including diamonds, rose by 6 percent to a similar volume.
The volume of trade between Israel and India excluding diamond exports totaled about $ 1.8 billion in 2017, a decrease of about 7% compared to 2016, when trade amounted to $ 1.95 billion. This decline followed a decline of about 13% in 2016 relative to 2015. Exports of goods to India (excluding diamonds) decreased by 21% to $ 900 million during the year ending in 2017, following a decline of 13% in 2016. Imports of goods totaled about 900 million in 2017 An increase of 14% compared with the same period last year.
It is important to note that the diamond industry has a great influence on the overall volume of trade between the two countries. Israel imports rough diamonds from various countries and exports them to India. Where the diamonds are polished and returned back to Israel for export, mainly to European countries, the United States and Hong Kong.
An analysis of trade trends in recent years shows a decline in exports of goods, while imports of goods are on the rise. Exports of goods to India (excluding diamonds) in 2017 were 26% lower than the average annualized rate over the past decade. In contrast, imports of goods in 2017 (excluding diamonds) were 19% higher than the average annual exports over the past decade. As a result, in 2017 there was no export surplus vis-à-vis India in exports of goods excluding diamonds, in contrast to the trend prevailing in most of the past decade.
An analysis of the export of goods without diamonds to India indicates a continuing downward trend between 2011 and 2017. Although exports rose in the years 2015-2016, an industry analysis shows that it was affected by the supply of defense equipment during those years. In the other industries there was no increase in the given years (see analysis below).
Analysis of Israeli exports to India points to three heterogeneous components in their development in recent years. The first group is chemicals and minerals, which were significant industries in exports to India until a few years ago, but this trend has been trending downward and consistent in recent years. The second group is export industries that are affected by defense exports. These include telecommunication equipment, export of metals and export of industrial equipment for control and photography and instrumentation for testing and navigation measurements. These industries recorded a significant increase in the volume of exports in 2015-2016 (compared to previous years), in our estimation due to large deliveries in the said years. In 2017, the volume of exports in these industries returned to levels recorded in previous years. It should be borne in mind, however, that these volatile sectors, whose export volumes are heavily affected by export dates, provide large security transactions.
The third group is the other industries which are not included in the minerals and chemicals industries and not in the defense industries. These industries maintain a stable level of exports in recent years. The export of machinery and equipment, for example, where activity is concentrated, including the export of machinery in the printing, robotics, irrigation and food sectors, remained at an average level of $ 90 million in 2013-2016. The same is true for the export of electronic components and the export of medical equipment. Two industries are also prominent in exports to India, which have maintained an average of $ 26-28 million a year in recent years.
Accordingly, in 2017 exports were characterized by a continuation of the downward trend in the chemicals and minerals industries (due to the negative business sentiment in the industry). During the first three quarters of 2017, the export of chemicals and oil distillates decreased by about 15% to about $ 102 million, 33% to $ 96 million. In the industries affected by defense supplies, there was also a significant decrease compared to the same period last year: exports of telecommunications equipment fell 22% to $ 142 million; Exports of metals and metal products declined by about 75% to $ 50 million and export of industrial equipment for control decreased by about 26% to $ 44 million.
On the other hand, exports of machinery and equipment (including exports of machinery in the printing, robotics, irrigation, and food industries), in contrast to the general trend, grew 22% to $ 62 million. Other exports this year were also recorded in the export of electronic components (an increase of approximately 100% to exports of approximately $ 46 million), exports of medical equipment (an increase of about 24% to an export volume of $ 21 million), and agricultural exports Increased by 40% compared with the corresponding period last year, amounting to approximately $ 13 million.