India and Israel have agreed to set up a high-level study group to further improve relations and to increase their trade in three years to five billion dollars a year.
The agreement came during talks that visiting Israeli Vice Prime Minister Ehud Olmert held with Indian officials and leading businessmen in New Delhi on Wednesday.
Indian officials say trade with Israel exceeded two billion dollars this year and they said there are signs it will continue to grow.
Mr. Olmert urged Indian businesses to forge partnerships with the Israelis to manufacture products for third countries. He also encouraged Indian software companies to invest in Israel.
India established diplomatic relations with Israel 11 years ago.