India and Israel share a deep-rooted partnership built on shared challenges, mutual respect, and opportunities for collaboration. From addressing security concerns to advancing trade, technology, and agriculture, the relationship between the two nations continues to thrive and evolve, as highlighted during the recent plenary session at the World Hindu Economic Forum (WHEF) 2024.
Shared Challenges in Security and Extremism
Kobbi Shoshani, Consul General of Israel to Mumbai, underscored the similarities in challenges faced by India and Israel, particularly in areas of security and extremism. Speaking at the WHEF, Shoshani expressed solidarity with the Hindu community in Bangladesh, condemning the violence and persecution they endure. He drew parallels between the historical experiences of the Jewish community and the Hindu community, emphasizing a shared understanding of suffering and resilience. Highlighting the attacks by Hamas on Israel, Shoshani reflected on the importance of addressing these challenges through robust military and economic strategies.
“You can’t have a strong economy with a weak Army,” Shoshani remarked, stressing the importance of military strength as a foundation for economic stability. He further emphasized that crises often lead to innovation, citing advancements in telecommunications and medical technology as examples.
Economic Ties: Trade and Investment
India is Israel’s second-largest trading partner in Asia and the ninth-largest globally. Bilateral trade has grown exponentially from a modest US$ 200 million in 1992 to US$ 10.77 billion in FY23 (excluding defence). Diamonds and chemicals have traditionally dominated this trade; however, recent years have seen diversification into sectors such as electronic machinery, medical equipment, communications systems, and high-tech products.
India’s exports to Israel amounted to US$ 8.45 billion in FY23, driven by petroleum products (US$ 5.50 billion), gems and jewellery (US$ 1.26 billion), and engineering goods (US$ 136.84 million). Between April-November 2023, exports reached US$ 3.51 billion, continuing to highlight petroleum products, gems, and chemicals as key commodities. Israel, in turn, has invested significantly in India, with nearly 300 companies actively engaged across sectors such as pharmaceuticals, clean energy, water management, and health.
Agricultural Collaboration and Technology Sharing
Agriculture remains a cornerstone of bilateral cooperation. Under a comprehensive work plan signed in 2006, projects are implemented through MASHAV (Israel’s Center for International Cooperation) and CINADCO (Centre for International Agricultural Development Cooperation). The fifth phase of the joint action plan (2021-23) has furthered high-level collaborations between Israeli institutions and the Indian Council of Agricultural Research (ICAR), leveraging Israel’s advanced agricultural technologies to enhance productivity in India.
Strategic Partnerships in Defence and Technology
The defence sector forms a critical pillar of the India-Israel partnership. India is the largest buyer of Israeli military equipment, while Israel is India’s second-largest defence supplier. These ties have strengthened over the last decade, with both countries advancing partnerships in homeland security, cyber defence, and advanced military technologies. In May 2023, India and Israel signed agreements facilitating the deployment of 42,000 Indian workers in Israel’s construction and nursing sectors, a move aimed at addressing rising costs and workforce shortages in Israel.
Celebrating 30 Years of Diplomatic Relations
The year 2022 marked 30 years of full diplomatic ties between India and Israel. Commemorative events included illuminating historic landmarks with the colors of both nations’ flags and launching a logo combining the Star of David and the Ashoka Chakra—symbols of friendship and mutual admiration. These celebrations highlighted the growing depth of cooperation in trade, technology, agriculture, and defence.
Future Directions: Free Trade Agreement and I2U2
Negotiations for a Free Trade Agreement (FTA) between India and Israel have resumed, with the potential to significantly boost economic collaboration. This agreement aims to capitalize on India’s manufacturing prowess and Israel’s technological expertise, complementing India’s flagship ‘Make in India’ initiative. Additionally, both nations have joined the I2U2 group, which includes the UAE and the United States, to address global challenges such as food security and clean energy.
Conclusion
India and Israel’s partnership exemplifies the power of collaboration in addressing shared challenges and seizing opportunities. With robust economic ties, strategic defence cooperation, and innovative agricultural and technological exchanges, the relationship continues to set new benchmarks. As both nations look ahead, the foundation of trust and shared values promises to propel their partnership into new horizons, fostering stability, innovation, and prosperity.
