INDIA-ISRAEL RELATION

NEWS: Prime Minister’s standalone visit to Israel to strengthen bilateral relationsà geopolitically sensitive because West Asia (Middle East) is currently highly volatile

Key Features

• Diplomatic relations established: 1992
• Strong cooperation in:
  • Defence & Security (missiles, drones, intelligence)
  • Agriculture (drip irrigation)
  • Technology & AI
  • Innovation and startups
• Israel is one of India’s top defence suppliers.

Key Outcomes

• India-Israel ties were formally elevated toà “Special Strategic Partnership for Peace, Innovation and Prosperity“
• UPI will be operationalized in Israelà for Indian tourists, professionals, and cross-border remittances.
• ‘Indo-Israel Cyber Centre of Excellence’ àto be set up in India to combat digital threats and protect critical infrastructure.
• The India-Israel Innovation Centre for Agriculture (IINCA) àwill advance precision farming and satellite-based irrigation.
• India-Israel Academic Cooperation Forum (I2I Forum)à will conduct annual university-led research dialogues.

Overview of India-Israel Trade Relations

• India-Israel bilateral merchandise trade stood at $3.62 billion in FY 2024-25.
• Marks a sharp decline àfrom the record high of $10.77 billion in FY 2022-23, driven by regional instability and Red Sea disruptions.
• IndiaàIsrael’s 2nd largest trading partner in Asia and among top ten partners globally.
• The balance of trade currently favours India.
• Key Exports: Pearls, precious stones, petroleum products, and organic chemicals.
• Key Imports: Rough diamonds, electrical machinery, fertilisers, and defence equipment.
• Both nations have initiated formal negotiations for a Free Trade Agreement (FTA).