New Delhi: Israel has said that it was not unduly concerned over losing out to India in outsourcing.

"We understand the dynamics of business and trade. We know that India has cost advantage over Israel in outsourcing," Israeli Deputy Prime Minister Ehud Olmert told media persons in New Delhi last night (Dec 8, 2004).

Olmert said that India and Israel should tap the vast opportunities in high technology areas, including nano-technology, IT and biotech by cooperating with each other.

"There is a solid basis for mutually beneficial economic cooperation," he said.

To a query, he said that Defence was not the only area where Israel wanted to partner with India. "Defence is an important area but not the exclusive area of cooperation."

The three-day visit of Olmert saw signing of corporate agreements including the one between Mizrahi Bank and ICICI.

"It is not money that is important in these matters but the message that the businessmen and traders of the two countries can join hands with each other without any hassle or hitch," he said.

A statement of intent was also inked to set up a joint initiative to promote industrial research and development in the two countries. It will translate into signing of a comprehensive agreement in the second half of the next fiscal, he said.