The Prime Minister of India is currently on a visit to Israel. His previous visit took place in 2017, nine years ago, and it marked the first-ever visit by an Indian Prime Minister to Israel. In the years since the Indian Prime Minister’s first visit, the global geopolitical landscape in general—and that of West Asia in particular—has undergone significant changes. In a high volatile environment, Indian PM’s visit to Israel will be among the most watched visits to the region.
India & Israel are not only a key defense & security partners, but also important economic partners in IMEC. India-Israel relations are characterized by a strong, multi-dimensional strategic partnership that prioritizes defense, security, technology, agriculture, and innovation while showing remarkable political alignment on key global and regional issues. The 2026 visit signals a major expansion of strategic collaboration – especially in security, defence, and advanced technologies.
| Table of Content |
| Historical development Significance of India-Israel Bilateral Relations Challenges in India-Israel Bilateral Relations Areas of cooperation between India & Israel Way Forward |
Historical development:
| Distant and Hesitant (1948 – 1992) |
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| Full Normalization and the Defense Pivot (1992 – 2014) |
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| Deepening, De-Hyphenation, and Strategic Alignment (2014 – Present) |
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Significance of India-Israel Bilateral Relations:
- Political Convergence: Both countries support each other’s positions on critical issues – India has backed Israel’s right to self-defense, and Israel supports India’s stance against cross-border terrorism. This convergence raises each nation’s diplomatic profile and provides reliable allies in volatile regions.
- Defense and Security:
- Israel is one of India’s top defense suppliers, providing advanced technologies in drones, air defense, missiles, and intelligence – enhancing India’s military readiness and anti-terror capabilities e.g. Heron drones, SPICE family precision-guided bombs.
- Joint R&D and co-production in areas like electronic warfare and missile defense directly strengthen India’s self-reliance and modernization e.g. SPYDER air defence system.
- Intelligence and Counterterrorism: Robust intelligence-sharing and operational cooperation have helped India counter terrorism and address emerging hybrid threats, with both countries facing similar security challenges in their regions e.g. Israel shared satellite imagery and surveillance technologies like sensors and airborne radars with India to improve situational awareness during & after 2008 Mumbai terror attacks.
- Trade and Investment:
- India is Israel’s second-largest trading partner in Asia.
- Bilateral trade and economic relations between India & Israel have progressed rapidly – from US$ 200 million in 1992 (comprising primarily of diamonds), merchandise trade has diversified and reached a peak of US$ 10.77 billion (excluding defense) in FY 2022-23.
In FY 2023-24 and FY 2024-25 the bilateral trade (excluding defense) was US$ 6.53 billion and US$3.75 billion respectively, witnessing a decline due to regional security situation and trade route disruption. - Though bilateral merchandise trade has been dominated mainly by diamonds, petroleum products and chemicals, recent years have witnessed an increase in trade in areas such as electronic machinery and high-tech products; communications systems; medical equipment, etc.
- The 2025 Bilateral Investment Treaty is expected to boost two-way FDI, fintech, and start-up collaborations, setting the stage for a future free trade pact.
- Agriculture and Water Management: Israeli innovation in drip irrigation, water conservation, and precision agriculture has been scaled across India, improving Indian farmers’ efficiency, raising rural incomes, and addressing chronic water scarcity.
- Innovation Ecosystem: India benefits from Israeli expertise in start-up incubation, cyber security, AI, and “smart city” technologies, and the innovation fund (I4F) fosters joint research and product development for global markets.
Challenges in India-Israel Bilateral Relations:
- The Palestine Issue: While India has successfully employed a policy of “de-hyphenation” (treating ties with Israel and Palestine separately), India remains a traditional supporter of the Palestinian cause in multilateral forums like the UN & was also among the earliest countries to recognise the state of Palestine in 1988. This diplomatic position is sometimes at odds with Israel’s actions like dispossession & displacement of thousands of Palestinians in the West Bank that has drawn worldwide condemnation.
- Energy and Diaspora: India relies heavily on the Gulf Cooperation Council (GCC) for a substantial portion of its crude oil and natural gas supplies. Furthermore, over 9 million Indian expatriates reside in the Gulf, contributing critical remittances to the Indian economy. Any perceived over-alignment with Israel risks jeopardizing these vital economic and energy lifelines.
- Iran & China Factors:
- To Israel, Iran is an existential “nuclear-armed” threat and a sponsor of the “Axis of Resistance.” To India, Iran is a vital gateway to Central Asia and Russia through the Chabahar Port, bypassing Pakistan.
- Israel’s very close relationship with China in high technology (Israel-China trade: $22 billion+) produce diverging priorities, and India is concerned about technology transfers from Israel to China and Chinese FDI in Israel.
- Limited Technology Transfer: India’s priority under its “Aatmanirbhar Bharat” initiative is to acquire technology for domestic manufacturing. While Israel is generally more willing to share defense technology than other nations, it still places restrictions on the full transfer of proprietary or sensitive systems, especially those containing US components (which are subject to US export control laws).
- Trade issues:
- Non-Defense Trade Plateau: Despite ambitious targets, non-defense trade has generally plateaued between $6 billion and $8 billion, highlighting challenges in market access and scaling commercial engagement beyond established sectors.
- Trade Volume Fluctuations: Bilateral trade saw a decline in FY 2024-2025 (dropping to approximately $3.75 billion) due to regional security challenges and maritime trade disruptions in the Red Sea.
- Stalled Free Trade Agreement (FTA): Negotiations for a comprehensive FTA have been ongoing for years. Key hurdles include concerns from Indian domestic industries and complexities regarding market access and intellectual property.
- Intellectual Property Rights (IPR): Israel, a high-tech exporter, shares concerns with other Western nations regarding India’s relatively lenient IPR regime, particularly concerning the protection of software and digital innovation.
- Public Opinion in India: Despite the government’s strong public embrace, a significant segment of the Indian public and political opposition maintains traditional sympathy for the Palestinian cause, requiring the ruling party to occasionally temper its rhetoric and maintain a semblance of balance on the issue.
- Hexagon of Alliances: The “Hexagon” is Israeli PM’s proposed strategic axis involving six primary nodes: Israel, India, Greece, Cyprus, select Arab nations, and African/Asian partners. The goal is to institutionalize security and intelligence-sharing to counter “radical axes”. However, joining such a military or political bloc goes against India’s core principle of Strategic Autonomy. This principle of “strategic autonomy” allows India to maintain balanced relationships with a diverse set of powers, including the US, Russia, China, Iran, and all Gulf states simultaneously.
Areas of cooperation between India & Israel:
- Defence & Security:
- Arms Trade: Israel is consistently one of India’s top three defense suppliers. India procures critical systems like radar, missile defense shields (e.g., the Barak 8 system developed jointly), drones, and sophisticated surveillance equipment.
- Joint Research and Development (R&D): The focus has shifted from a buyer-seller relationship to joint development and co-production, aligning with India’s “Aatmanirbhar Bharat” initiative.
- Counter-Terrorism: Extensive intelligence sharing and training cooperation, particularly relevant due to shared security threats.
- Integrated Air Defense: India is looking to incorporate elements of Israel’s Iron Dome and Arrow systems into its own indigenous Sudarshan Chakra air defense shield.
- Water & Agriculture:
- India & Israel have signed an Agreement for cooperation in the field of agriculture in 1993. The Agreement provides for cooperation in the fields of soil and water management, horticultural & agricultural production, post-harvest and processing technology, agriculture mechanization, animal husbandry and research & development.
- Drip Irrigation and Micro-Irrigation: Israel has implemented the Indo-Israel Agricultural Project (IIAP), establishing dozens of “Centres of Excellence” across various Indian states. These centres train Indian farmers on high-tech techniques, primarily focused on micro-irrigation, protected cultivation (greenhouses), and maximizing yield with minimal water use.
- Water Management and Recycling: Cooperation in water treatment, desalination, and recycling technology to help India address its growing urban water scarcity.
- Cybersecurity and R&D: Deep cooperation in cybersecurity, and joint research and funding in high-tech areas through the India-Israel Industrial R&D and Technological Innovation Fund (I4F). A joint contribution of US$ 20 million from each side over 5 years (2018-2022), enabled Indian and Israeli enterprises to undertake joint industrial R&D projects in priority technology sectors such as agriculture, water, energy, healthcare and ICT.
- I2U2 Grouping: India and Israel are core members of the I2U2 initiative, along with the US and UAE. This group focuses on promoting joint investments in key sectors like food security, water, energy, and transportation infrastructure, demonstrating Israel’s role in India’s regional economic strategy.
Way Forward:
- Deepen Strategic and Defense Cooperation:
- Strengthen defense ties by accelerating joint R&D, co-production of advanced military technologies (drones, missile defense, cyber security), and institutionalizing regular high-level dialogues.
- Expand intelligence and counter-terrorism cooperation, leveraging Israel’s expertise and India’s regional security needs.
- Expand Economic and Investment Collaboration: Fully implement the 2025 Bilateral Investment Treaty to boost two-way FDI, remove barriers, and scaffold a future Free Trade Agreement to increase trade volumes beyond the current $7–8 billion.
- Enhance Innovation and Technology Exchange: Foster shared innovation in AI, biotech, cybersecurity, and smart infrastructure utilizing the India-Israel Industrial R&D and Innovation Fund (I4F).
- De-Hyphenation through Integration: By channeling joint investments and projects through the I2U2 framework, India demonstrates that its partnership with Israel is not exclusive but is actively beneficial to the Arab world. This provides a diplomatic shield for India’s ties to Israel.
- Knowledge Corridors: Establish structured “Knowledge Corridors” linking major Indian R&D institutions (like the IITs and IISc) with top Israeli universities and research centers to ensure a steady flow of research talent and joint discovery.
Conclusion: A pragmatic, multi-sectoral, and balanced approach respecting geopolitical sensitivities and focusing on enhanced cooperation will cement India-Israel relations as a cornerstone of India’s strategic and innovation-driven growth trajectory.
| UPSC GS-2: International Relations Read More: Embassy of India, Indian Express |
