Bilateral trade between India and Israel has touched a new high of $1.23 billion, registering an increase of 42.9 per cent, official sources said in Jerusalem on Thursday.

The two-way trade between the two countries reached $1,259 million during the January to July period compared to $880.9 million in the corresponding period last year, they said.

Indian exports to Israel for the first seven months of this year increased by 29 per cent from $493.3 million in 2003 to $636.5 million in 2004.

Israeli exports for the corresponding period increased by 60.6 per cent from $387.6 million in 2003 to $622.5 million.

The share of India's exports in Israel's global imports increased from 2.5 per cent in 2003 to 2.8 per cent in 2004.

The current figures suggest a six-fold increase in trade between the strategic partners, starting from a modest figure of $200 million in 1992.

India overtook Japan last year to become Israel's second largest trading partner in Asia, with Hong Kong continuing to be in the first place.