An Israel Visit Its Strategic, Economic, Regional Impact

sfg-2026

UPSC Syllabus: Gs Paper 2 –International Relation.

Introduction

West Asia is facing rising tensions, including a large American military buildup in the Persian Gulf, Iran’s defiance, and fragile peace in Gaza since October 2025. Regional fault lines are also pulling countries like the UAE and Saudi Arabia into opposing blocs. In this uncertain situation, Prime Minister Narendra Modi’s February 25–26, 2026 visit to Israel gains strategic, economic, and geopolitical importance.

Evolution of India–Israel Relationship

  1. From Diplomatic Ties to Strategic Partnership: India and Israel established full diplomatic relations in 1992. The partnership deepened after Modi’s historic 2017 visit, the first by an Indian Prime Minister.
  2. De-hyphenation Policy: The 2026 visit is a standalone engagement without meeting Palestinian leadership. This reflects India’s success in separating its Israel ties from the Palestine issue.
  3. Growing Strategic Convergence: Both countries face hostile neighbourhoods and frequent terror threats. This shared security concern has shaped a strong and practical partnership.

Why Modi’s Israel Visit Matters

  1. Defence and Security Cooperation
  • Largest Defence Partnership: India accounted for about 34% of Israel’s total arms exports between 2020 and 2024, according to SIPRI. Cooperation has moved from imports to joint development and technology collaboration.
  • Advanced Military Technology: Israel has supplied UAVs, missiles, radar systems, and special forces equipment. The jointly developed Barak-8 air and missile defence system is a major example.
  • Future-Oriented Defence Vision: The 2022 ‘India-Israel Vision on Defence Cooperation’ and the November 2025 agreement aim to deepen cooperation in advanced systems, defence industry, and joint production.
  • Air and Missile Defence Focus: Lessons from Operation Sindoor (May 2025) highlighted the need for a strong air and anti-drone shield under Mission ‘Sudarshan Chakra’. Discussions may include co-production of the Iron Beam 100kW laser system.
  • Private Sector Defence Linkages: Autonomous Guard signed a deal worth about $1.9 million with an Indian defence firm for advanced surveillance and sensor-based threat detection systems.
  1. Technology, Innovation, and Development Partnership
  • Agricultural Transformation: More than 35 Centres of Excellence in India promote high-density production of fruits, vegetables, flowers, and beekeeping.
  • Water Resource Cooperation: MASHAV signed agreements with Haryana (June 2022) and Rajasthan (December 2024) for integrated water management and capacity building.
  • Emerging Technology Collaboration: Artificial Intelligence is expected to become an important focus area in future bilateral innovation initiatives.
  1. Trade, Investment, and Economic Expansion
  • Strong Trade Base: Bilateral trade reached $3.75 billion in FY 2024–25, making India Israel’s second-largest trading partner in Asia.
  • Expanding Trade Basket: While diamonds, petroleum, and chemicals dominate, trade is expanding into electronics, communications, high-tech products, and medical equipment.
  • Investment and FTA Momentum: A Bilateral Investment Agreement was signed in September 2025. The Terms of Reference for a Free Trade Agreement were signed in November 2025, and the visit may accelerate negotiations.
  • Infrastructure and Mobility Discussions: Israel seeks arrangements for Indian infrastructure companies in road and port projects. It may also pursue a “human mobility” agreement to attract skilled Indian professionals.
  1. People-to-People and Symbolic Engagement
  • Parliamentary Diplomacy: Modi’s address to the Knesset, an honour usually reserved for select global leaders, reflects the maturity of bilateral ties.
  • Cultural and Historical Connect: His visit to Yad Vashem highlights shared respect for history and remembrance.
  • Diaspora and Innovation Outreach: Interaction with the Indian Jewish community and participation in a technology exhibition strengthen social and innovation linkages beyond formal agreements.

Regional and Geopolitical Implications

  1. Iran Tensions and Energy Security
  • Impact on India’s Interests: Rising Iran-U.S. tensions may affect regional stability and India’s energy security. This will form an important part of discussions.
  1. Gaza Peace Process and India’s Role
  • Global Stabilisation Efforts: At the February 19, 2026 Summit of the Board of Peace, over 50 countries pledged support, including $7 billion and troop commitments. India attended as an observer.
  • Balanced Regional Approach: India maintains strong ties with both Israel and Gulf nations. Its recent diplomatic engagements show a careful balancing strategy.
  1. IMEC and Strategic Connectivity
  • Economic Corridor Significance: The India-Middle East-Europe Economic Corridor (IMEC), announced at the 2023 G-20 Summit in Delhi, is strategically important for both countries.
  • Alternative to Suez Route: With the Suez Canal vulnerable to disruptions, IMEC offers a shorter and safer transport corridor. Its success depends on lasting peace in Gaza.
  1. Alliance Politics and Strategic Autonomy
  • Hexagon Proposal: Israel proposed a regional “hexagon” alliance including India and several other nations. India does not necessarily view the region through bloc politics.
  • Independent Foreign Policy: India’s response will reflect its broader regional relationships and strategic autonomy.

Conclusion

PM Modi’s visit goes beyond symbolism. It strengthens defence cooperation, technology partnership, trade expansion, and regional engagement. It also tests India’s balancing role amid West Asian tensions. The visit shows that India and Israel are deepening a mature strategic partnership while India carefully protects its wider regional interests.

Question for practice:

Discuss the strategic, economic, and regional significance of Prime Minister Narendra Modi’s 2026 visit to Israel in the context of evolving India–Israel relations and emerging West Asian geopolitical challenges.

Source: The Hindu

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