Context:
Prime Minister Narendra Modi’s visit to Israel highlights the growing strategic partnership between India and Israel, even as tensions rise in the West Bank and global scrutiny of Israel’s actions intensifies.
Key Highlights:
- Diplomatic Engagement
- Prime Minister Modi held discussions with Israeli Prime Minister Benjamin Netanyahu on bilateral cooperation and regional developments.
- India recently joined over 100 countries at the United Nations in criticizing Israeli actions in the West Bank, after initially abstaining from the joint statement.
- Bilateral Trade Trends
- India–Israel trade peaked at over $10.7 billion in 2022–23.
- Trade declined to $3.6 billion in 2024–25, largely due to disruptions caused by the Gaza conflict.
- India maintained a trade surplus, which reached $6.1 billion in 2022–23 but dropped to $663 million in 2024–25.
- Trade Composition
- Refined petroleum products accounted for about 44% of India’s exports to Israel (2019–2025).
- Diamonds constituted roughly one-third of India’s imports from Israel.
- Defence Cooperation
- India accounted for over 38% of Israel’s arms exports between 2014–2024, making it one of Israel’s largest defence partners.
- Cooperation includes missile systems, drones, surveillance technologies and air defence systems.
- Investment and Technology Collaboration
- Israeli FDI in India exceeded $347 million (2000–Sept 2025), mainly in technology and innovation sectors.
- Indian companies invested about $443 million in Israeli technology startups.
- Labour and Human Exchange
- Around 32,000 Indian workers are employed in Israel, particularly in the construction sector, replacing Palestinian labour after the Gaza conflict.
- Approximately 900 Indian students are currently studying in Israel.
Relevant Prelims Points:
- India–Israel Diplomatic Relations
- Established full diplomatic relations in 1992.
- Cooperation areas: defence, agriculture, water management, cybersecurity and innovation.
- Major Areas of Cooperation
- Defence technology and arms imports
- Agricultural cooperation through Centres of Excellence
- Innovation partnerships and startup collaboration
- West Bank
- Territory located west of the Jordan River.
- Part of the Israeli–Palestinian conflict, administered partly by the Palestinian Authority.
Relevant Mains Points:
- Strategic Significance of India–Israel Relations
- Israel is a major defence technology partner for India.
- Cooperation strengthens India’s military modernization and technological capabilities.
- Balancing Diplomacy in West Asia
- India maintains simultaneous relations with Israel, Palestine, and Arab countries.
- Policy reflects strategic autonomy and multi-alignment in foreign policy.
- Economic and Technological Cooperation
- Israel is known as the “Startup Nation”, offering collaboration opportunities in AI, cybersecurity, agri-tech, and water management.
- Partnerships help India advance innovation-driven growth.
- Challenges
- Regional instability in West Asia affects trade and labour mobility.
- India must balance ties with Israel, Gulf nations, and Palestine.
- Way Forward
- Expand technology and innovation partnerships.
- Strengthen trade diversification beyond defence and diamonds.
- Continue balanced diplomacy supporting peace in West Asia.
- Promote cooperation in water management, agriculture and AI technologies.
UPSC Relevance:
- GS Paper II: India and its neighbourhood; international relations.
- GS Paper III: Defence technology and economic cooperation.