Context: PM Modi’s standalone visit to Israel to upgrade bilateral relations faces significant geopolitical headwinds amid regional tensions.
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- Focus on defence, security, labour, trade, AI, technology, and IMEC project connectivity.
- “Hexagonal alliance” announcement planned: India, Greece, Cyprus, unnamed Arab/African/Asian countries against “radical Sunni and Shia axes”.
- Countries potentially targeted: Iran, Turkey, Saudi Arabia, Qatar. All maintains historical and complex ties with India.
Historical Evolution of India-Israel Relations
- Phase 1: Distant and Hesitant (1948–1992)
- India recognised Israel in 1950 but restricted it to only a consulate in Mumbai and no full diplomatic relations
- Foreign policy shaped by Cold War dynamics, NAM commitments, and strong pro-Palestinian stance
- Despite diplomatic freeze, Israel covertly assisted India during the 1965 and 1971 wars against Pakistan
- Phase 2: Full Normalisation (1992–2014)
- Full diplomatic relations established in 1992, driven by Soviet collapse, end of Cold War, and India’s economic liberalisation.
- Kargil War (1999) proved decisive as Israel supplied laser-guided missile kits and UAVs rapidly, often faster than traditional suppliers
- Defense relationship firmly cemented during this phase.
- Phase 3: De-hyphenation and Strategic Alignment (2014–Present)
- India adopted “de-hyphenation” policy — treating Israel ties as independent of its Palestine stance.
- Allowed India to deepen relations with Israel without compromising its Palestinian support.
- Partnership expanded into I2U2 grouping (India, Israel, US, UAE) thus focusing on water, energy, transport, and food security.
Significance of India-Israel Relations
- Defense and Security
- Israel is among India’s top defense suppliers – advanced drones, missile defense systems, radar, and surveillance technology
- Relationship evolved from buyer-seller to joint R&D and co-production, supporting Aatmanirbhar Bharat
- Barak-8 missile defense system, a landmark jointly developed product
- Robust intelligence sharing and counter-terrorism cooperation addressing shared security threats
- Trade and Investment
- Bilateral trade stands at $7–8 billion, spanning agriculture, high-tech, defense, and pharmaceuticals
- 2025 Bilateral Investment Treaty expected to boost two-way FDI, fintech, and start-up collaborations
- Lays groundwork for a future Free Trade Agreement
- Agriculture and Water Management
- Israeli expertise in drip irrigation and precision agriculture scaled across India through Indo-Israel Agricultural Project (IIAP)
- Centres of Excellence established across Indian states providing training to farmers in micro-irrigation and protected cultivation
- Addresses chronic water scarcity and improves rural incomes
- Innovation and Technology
- Cooperation in cybersecurity, AI, and smart city technologies
- India-Israel Industrial R&D and Technological Innovation Fund (I4F) fosters joint research and product development for global markets
Challenges Associated with India-Israel Ties
- Palestine Question: India’s traditional UN support for Palestine creates occasional tension with Israeli interests and the domestic public opinion also maintains sympathy for Palestine
- Gulf Dependency: India’s heavy reliance on Gulf Cooperation Council (GCC) for energy and 9 million Indian expatriates contributing remittances makes over-alignment with Israel strategically risky.
- Iran and China Factors: India’s ties with Iran (Chabahar port) and concerns over Israel’s technology cooperation with China (Israel-China trade: $22 billion+) create diverging priorities
- Limited Technology Transfer: Israel restricts transfer of sensitive defense systems containing US components, limiting India’s Aatmanirbhar Bharat ambitions
- IPR Concerns: Israel’s concerns over India’s lenient intellectual property regime, particularly in software and digital innovation, remain unresolved
- Non-Defense Trade Plateau: Bilateral trade has largely stagnated between $6–8 billion, reflecting limited diversification beyond established sectors
Way Forward
- Accelerate joint R&D and co-production in drones, missile defense, and cybersecurity aligned with Aatmanirbhar Bharat.
- Fully implement 2025 Bilateral Investment Treaty and work toward a future Free Trade Agreement.
- Use I2U2 framework as a diplomatic shield and joint investments through it demonstrate that India-Israel partnership benefits the broader region.
- Strengthen knowledge corridors linking IITs and IISc with Israeli research centres for sustained innovation collaboration.
