Israeli Manufacturers Association presents $1.25 billion plan to boost Israel’s postwar economy

The Israeli Manufacturers Association has presented a $1.25 billion plan to Prime Minister Benjamin Netanyahu aimed at boosting and strengthening the country’s post-war economy and industry, Ynet News reported on Monday.

Two years of war have taken a toll on Israel’s industrial sectors, hurt by international boycott calls and negative media portrayals. However, Dr. Ron Tomer, president of the Manufacturers Association, expressed optimism about the future of Israel’s economy and industry.

“We are confident that this postwar plan will secure Israel’s industrial production and exports for years to come,” Tomer told Ynet. The ambitious plan seeks to double Israeli exports within the next five years and reverse the decline that the Israeli industry has faced since the Hamas-led Oct. 7, 2023, attack.

Tomer emphasized that Israel is an export-driven economy. 

“The export sector is Israel’s main growth engine,” he explained. “Over the past two years, exports suffered a sharp decline and a retreat in international cooperation. Israel must take bold measures to compensate for losses, restore confidence in its brand, and secure stable trade partnerships. We believe this plan can double exports within five years and achieve all its goals. The government should adopt it without delay."

Avi Balashnikov who heads Israel’s Export Institute, echoed similar sentiments. 

“Exports account for about 30 percent of Israel’s GDP, making them a central pillar of growth. Unfortunately, growing global hostility toward Israel, especially in recent months, has severely hurt our industry and exports. This plan could reverse that trend and help realize the immense potential of Israeli innovation and production,” Balashnikov assessed.

The recovery plan focuses on exports to new international markets, which could open up as U.S. President Donald Trump seeks to expand the Abraham Accords. The Manufacturers Association specifically stresses South America, India, Africa and East Asia as politically less sensitive regions with a significant growth potential. 

The plan calls for investments to rebuild Israel’s image as a reliable and innovative trade partner. In addition, the plan also prioritizes small and medium sized companies, which constitute the large majority of all Israeli businesses. 

A central component in the recovery plan is the establishment of an export marketing fund that will help businesses to finance international marketing programs. Additionally, the plan envisions the creation of a “Business Ambassadors” initiative that will recruit employees from target countries for internships in Israeli businesses.

Other components include international exhibitions, business conferences, marketing campaigns pilot support program abroad that will all enhance the visibility of Israeli companies worldwide. 

India and Israel established full diplomatic relations in 1992. The Asian giant has in recent years become one of the Jewish state’s most important trade partners. Israel has become one of India’s main suppliers of advanced military equipment. Unlike Russia and China, India has been articulating strong support for Israel since the Oct. 7 attack. India and Israel have also developed strong cooperation in cybersecurity and counterterrorism. 

Last month, Ynet reported that India and Israel were expected to sign a significant economic bilateral agreement in the coming weeks that could be potentially worth billions of dollars. Israeli Finance Minister Bezalel Smotrich was scheduled to lead a large Israeli business delegation to India that would facilitate the new agreement between the two countries. 

“India sees strategic value in linking with Israel’s economy,” a senior Israeli Finance Ministry official stated at the time.