India-Israel Relations- Explained Pointwise

News and Context

India-Israel relations have further deepened, after the Indian PM assured ‘unqualified support to Israel’ in the recent Israel-Palestine conflict. India has completely backed Israel in the wake of Hamas terror attacks. This unqualified support of India to Israel, shows the progress of India-Israel relations from ‘Palestine-leaning’ to ‘strategic embrace of Israel‘.

What is the History of India-Israel Relations?

In 2022, India and Israel jointly celebrated 30 years of full diplomatic relations. However the arc of India’s ties with Israel has been a ‘roller coaster’ over the past seven decades. 

India-Israel Relations from 1947 to 1992

During this phase, India firmly supported the Palestinian cause. India rejected the idea of two nations on the basis of religion. Thus India’s relations with Israel remained limited to bilateral recognition. 

However, the progress in India-Israel relations remained slow as compared to the progress in India-Palestine Relations.
In 1975, India recognised PLO as the sole and legitimate representative of the Palestinian people and permitted it to open an independent office at New Delhi.
In 1983, at the NAM summit of New Delhi, a statement of solidarity for Palestine was passed.
In 1987, India supported Palestinian intifada (uprising) in Gaza and West Bank. 

India was one of the last non-Muslim states to recognise Israel but it became the first non-Arab state to recognise the PLO.

India-Israel Relations from 1992 to 2017

India made drastic changes in its policy towards West Asia and Israel. This change of Policy was driven by several factors.

Firstly, the Arab countries adopted neutral position during the 1962 India-China war and supported Pakistan during the 1965 and 1971 war.
Secondly, Israel helped India with arms and ammunition in the 1962 and 1965 wars.
And finally, with the disintegration of Soviet Union in 1990 and PLO’s support of Iraq in Kuwait war, India changed its policy of total support to Palestine and ignorance of Israel. 

India adopted Link West Policy. As part of the Policy, India de-hyphenated its relationship with Israel and Palestine. As part of the Policy, India started treating both countries as mutually independent and exclusive. It means India’s relationship with Israel will depend upon its own merits. Thus began a phase of independent and exclusive engagement with Israel.

However, despite of deepening engagement with Israel in military, economic and scientific domains, India continued to support Palestinian self-determination.
In 1993, after the Oslo Peace accord, India opened a Representative Office for it in Gaza. Later the office was shifted to Ramallah in 2003.
In 2011, India voted in favour of accepting Palestine as a full member of UNESCO.
In 2014, India supported the UNHRC’s resolution to probe Israel’s human rights violations in Gaza.

India-Israel Relations from 2017 onwards

After 2017, there have been visible signs of preference of Israel as a major partner. In 2017, India dropped the customary line in support of East Jerusalem, the capital of Palestine. In 2017, Indian PM visit to Israel did not include Ramallah, which was the customary practice.

However, India did try to balance its relations with Palestine in this time period. In 2018, Indian PM made a separate visit to Ramallah. India voted against the recognition of Jerusalem as Israel’s capital.

But in the present conflict, India has chosen Israel’s side for the first time. Also for the first time, India has condoned Hamas’ actions. 

What is the significance of India-Israel relationship?

Israel is a significant partner for India because of the following reasons-

Economic and Commerce

India has a positive trade balance with Israel. India is Israel’s third-largest trade partner in Asia. The bilateral merchandise trade has grown from USD 200 million in 1992 to USD 6.35 billion (excluding defence). In recent years, bilateral trade has diversified into several sectors such as pharmaceuticals, agriculture, IT and telecom, and homeland security. Many Israeli companies have set up R&D centres in India and have been involved in technology transfers.

Defence 

India imports critical defence technologies from Israel. Nearly 41 % of Israel defence exports are to India. Indian armed forces use Israeli Phalcon AWACS (Airborne Warning And Control Systems), Heron drones to Barak anti-missile defence systems. India and Israel have also set up Joint Working Group on Counter-Terrorism.  On Kashmir issue (broadly Pakistan), Israel has stood by India, either by providing crucial intelligence inputs or weapons during wars.

Energy

India has been awarded exploration license to extract and import natural gas from the Tamar and Levianthan gas fields. This is a clear sign of diversification of the relation from defence to energy sector.

Science & Technology

India-Israel Industrial R&D and Technological Innovation Fund (I4F) has been set up to promote, facilitate and support joint industrial R&D projects. Joint Committee on S&T has been established under the S&T Cooperation Agreement signed in 1993.

Space

In 2002, India and Israel signed a cooperative agreement promoting space collaboration. India has successfully launched TecSAR and RISAT-2 radar imaging satellites of Israel from PSLV of ISRO.

Agriculture

India has benefited from Israeli expertise and technologies in horticulture mechanization, orchard and canopy management, micro-irrigation(drip irrigation technology) and post-harvest management. India and Israel have launched a three year joint working program in 2021 for enhanced agricultural cooperation.

Diaspora

There are about 85,000 Jews of Indian-origin in Israel (with at least one Indian parent), who are all Israeli passport holders. This diaspora population forms a strong emotional connect between India and Israel.

What are the challenges in India-Israel Relations?

However, despite the progress made in India-Israel relations, there are several challenges in the relations-

Balancing relations with the Arab world and Israel- Israel’s strained relations with Arab counties like Iran, has created difficulties for India in balancing its relations with both of them. Arab countries have a large expatriate Indian population(source of remittances) and are a major pillar of energy security for India.

Recurring Israel Palestine skirmishes- It becomes difficult for India to delink Israel and Palestine in India’s foreign policy. The recurring Israel Palestine skirmishes and wars create challenges for India at the Socio-political and economic level. 

Human rights violations- Israel has been accused of commiting human rights violations against Palestinians. India faces tough diplomatic tests in UN, UNHRC and UNSC on frequent resolutions against Israel.

Increasing Chinese influence in Israel- China is Israel’s largest trading partner in Asia. China is attracted to Israel’s technology sector. Israel is welcoming China’s investments and research collaboration projects. Increasing Chinese influence reduces the Indian diplomatic space.

Bilateral Trade and investment still below potential- Bilateral trade has stagnated at around $6 billion(excluding defence). Bilateral trade is also mainly confined to diamonds and defence. Also there has not been further progress on the Free Trade Agreement.

Read More- Impact of the Israel-Palestine conflict on India

What Should be the way Forward?

Diffusion of tensions between Israel and Palestine- Israel-Palestine war will be a major threat to the financial stability of India and the World. India must undertake sincere efforts to mediate between Israel and Hamas for peace. 

Ensure the principles of Abraham Accords are followed- India must diplomatically negotiate with the Arab countries so that the principles of Abraham Accords are followed. India must also nudge Saudi Arabia to sign the rapprochement deal with Israel despite the ongoing tensions.

Proactive Diplomacy- India must be diplomatically proactive to counter the growing Chinese influence in Israel.

Early conclusion of FTA- The Free trade Agreement between India and Israel must be negotiated and signed at the earliest. This will increase the bilateral trade between the countries.

Proper implementation of the dehypenation Policy- India’s dehypenation policy of Israel and Palestine must be properly implemeted. Though Israel comes across as a natural partner, India should also be concerned about the human rights issues in Palestine. India needs to balance its geostrategic needs and international morality.
Read More- The Indian Express

UPSC Syllabus- Bilateral, Regional and Global Groupings and Agreements involving India and/or affecting India’s interests.
Effect of Policies and Politics of Developed and Developing Countries on India’s interests, Indian Diaspora.