New Delhi: The $1.18 billion investment done by the Adani Group in buying the strategically located Haifa Port in Israel is a symbol of “deep trust”, and the Indian conglomerate is scouting for more such projects there, according to Naor Gilon, Ambassador of Israel to India. The envoy also said India and Israel are working towards having high-level visits as both countries completed three decades of diplomatic ties this year.
While it is still uncertain if Israeli Prime Minister Benjamin Netanyahu will be coming to India, their Foreign Minister Eli Cohen will undertake a trip to New Delhi soon.
“We have two ports in the territory so it’s (Haifa Port) a strategic asset. First of all, the fact that we are giving it to an Indian company. I think from our point of view, it’s very symbolic and a sign of deep trust as we are giving our strategic assets in the hands of Indian companies,” Naor Gilon, Ambassador of Israel to India, said Wednesday.
“Adani Group has the potential to make the Haifa Port the port it needs to be – to utilise, to increase trade in the region… The potential there is huge. We are happy with this,” he said at a media briefing.
Responding to a question by ABP Live, Gilon said the Adani Group is scouting for more such investments into Israel’s strategic projects.
“The Adani Group is looking for more projects in Israel. And I hope they succeed in getting (future projects)… Port is the core business of Adani and he (Gautam Adani) knows how to do this. We are very comfortable with an Indian-controlled port in the Mediterranean and that is something we are welcoming,” he told ABP Live.
According to the envoy, the Adani Group has taken full control of the Haifa Port.
“There is money now for the development of the port as part of the deal. We want to make this port working well and I do not see any other reason not to,” he said, referring to the fact that the land is owned by the Israel government and has been given to Adani on a lease.
Last month, the Adani Group led by billionaire Gautam Adani purchased the Haifa Port in northern Israel for $1.18 billion with an aim to develop it as a major trading hub on the Mediterranean.
Adani officially announced the deal with a photo of him shaking hands with Israel PM Netanyahu. But the next day the billionaire witnessed a freefall of its fortune over allegations of fraud by Hindenburg Research, which the company dismissed as “an attack on India”. The group, however, decided to call off a follow-on public offer (FPO) as the company’s stock price crashed.
Privileged to meet with @IsraeliPM @netanyahu on this momentous day as the Port of Haifa is handed over to the Adani Group. The Abraham Accord will be a game changer for the Mediterranean sea logistics. Adani Gadot set to transform Haifa Port into a landmark for all to admire. pic.twitter.com/Cml2t8j1Iv
— Gautam Adani (@gautam_adani) January 31, 2023
Make In India A ‘Challenge’ For Israel Defence Firms
The Ambassador of Israel also said Wednesday that the Narendra Modi government’s stress on ‘Make in India’ has become a “serious challenge”, particularly for the Israeli defence companies, but they are working towards it since they consider India as a “trusted partner”.
“When it comes to defence, I would say in a perfect world Israel would not sell any of the defence systems it is developing. Because, once you develop a system and you sell it, you know our capabilities and our weaknesses,” he said.
“So in a perfect world we don’t want to sell anyone our system,” he reiterated, adding that Israel is still exporting or selling its sensitive defence systems because the government’s defence is huge and to afford that it goes for selling items to other countries.
He stressed that exporting a defence system is one thing even though they remain vulnerable to reverse engineering. But in India’s case, under the ‘Make in India’ programme, it is not about reverse engineering but giving out the know-how and the intellectual property rights of a particular defence system, Gilon said.
“So you can do it only with countries who you really really trust, that’s the sensitivity there is… But the risk is always there that your vulnerability can get exposed to enemy countries. So this is always in the back of the mind of everyone,” he added.
According to Gilon, the defence budget of Israel is 7-8 percent of the country’s GDP because of the “situation” they are living under in terms of its ongoing conflict with Palestine.
He also said the ongoing Russia-Ukraine war and the increasing belligerence by China have driven up the demand for procurement of arms by other countries, and therefore Israeli defence firms are witnessing an uptick.