India-Israel Bilateral Relations

Syllabus: Bilateral, regional and global groupings and agreements involving India and/or affecting India’s interests

Context: Israel Foreign Minister Gideon Sa’ar held talks with EAM Jaishankar and NSA Ajit Doval amid fragile Gaza ceasefire concerns; emphasized counter-terror cooperation.

More in News:

  • Jaishankar stated India-Israel ties marked by “high degree of trust and reliability”, describing strategic partnership as having “real meaning” between both nations.
  • He emphasized India-Israel counter-terror cooperation as “essential”, advocating for “zero-tolerance towards terrorism in all forms and manifestations” approach globally.
  • Both Ministers presided over signing of agreement between Sushma Swaraj Institute of Foreign Service and Israel Foreign Ministry for training of diplomats collaboration.
  • Meeting focused on strengthening strategic partnership, with discussions covering bilateral cooperation, security matters, and diplomatic training between India and Israel foreign ministries.

Significance of India-Israel Ties

  • Political and Security Cooperation
    • Political convergence: mutual support on critical issues; India backs Israel’s self-defense, Israel supports India against cross-border terrorism.
    • Defense: Israel top defense supplier to India providing drones, air defense, missiles, intelligence enhancing military readiness.
    • Joint R&D in electronic warfare, missile defense strengthening India’s self-reliance and modernization significantly.
    • Intelligence-sharing: robust cooperation helping India counter terrorism and address hybrid threats with operational cooperation.
  • Economic Relations
    • Bilateral trade: $7-8 billion spanning agriculture, high-tech, defense, pharmaceuticals showing diverse engagement.
    • 2025 Bilateral Investment Treaty expected to boost two-way FDI, fintech, start-up collaborations setting stage for FTA.
  • Technology and Innovation
    • Agriculture: Israeli innovation in drip irrigation, water conservation, precision agriculture scaled across India improving efficiency.
    • Innovation ecosystem: Israel expertise in start-up incubation, cybersecurity, AI, smart city technologies; I4F fund fosters joint research.

Challenges of India-Israel Ties

  • Palestine Issue
    • India’s de-hyphenation policy: Treating Israel and Palestine ties separately and India remains traditional supporter of Palestinian cause in UN.
    • Diplomatic position sometimes at odds with Israel’s global interests requiring delicate balance in foreign policy.
  • Energy and Diaspora
    • India relies on GCC for crude oil, natural gas; over 9 million Indian expatriates in Gulf contribute critical remittances.
    • Over-alignment with Israel risks jeopardizing vital economic and energy lifelines requiring cautious approach.
  • Geopolitical Factors
    • Iran ties (Chabahar port, energy) and Israel’s close China relationship (Israel-China trade: $22+ billion) produce diverging priorities.
    • India concerned about technology transfers from Israel to China and Chinese FDI in Israel affecting strategic interests.
  • Technology and Trade
    • Limited technology transfer: Israel places restrictions on full transfer especially systems with US components under export control.
    • Non-defense trade plateaued at $6-8 billion highlighting challenges in market access and scaling commercial engagement.
    • IPR concerns: Israel shares Western concerns about India’s lenient IPR regime particularly software and digital innovation protection.

Way Forward

  • Strategic Enhancement
    • Deepen defense ties: accelerate joint R&D, co-production of advanced military technologies; institutionalize high-level dialogues regularly.
    • Expand intelligence and counter-terrorism cooperation leveraging Israel’s expertise and India’s regional security needs effectively.
  • Economic Expansion
    • Implement 2025 Bilateral Investment Treaty boosting two-way FDI, remove barriers, scaffold future Free Trade Agreement.
    • Enhance innovation in AI, biotech, cybersecurity, smart infrastructure utilizing I4F for joint ventures comprehensively.
  • Integration and Diplomacy
    • De-hyphenation through I2U2 framework: channel joint investments demonstrating Israel partnership benefits Arab world providing diplomatic shield.
    • Establish Knowledge Corridors: link Indian R&D institutions (IITs, IISc) with Israeli universities ensuring steady research talent flow.

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