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Yesasvi Koganti
1 March 2026 |
What happened?
During 25-26 February, Narendra Modi made a two-day visit to Israel. On 26 February, 16 agreements were signed covering defence, AI, cyber security, agriculture, trade, and digital payment systems including Critical and Emerging Technologies Partnership Negotiations. The visit also focused on free trade agreement, UPI’s entry to Israel, the establishment of 100 Agricultural Centres of Excellence, and an increase in the number of Indian workers by 50,000 over a period of five years.
PM Modi delivered an address at the Knesset, Israel’s Parliament, while he received the Speaker’s Medal and visited Yad Vashem, a memorial institution to the victims of the Holocaust, and supported the Gaza peace plan and restated his views against terrorism.
What is the background?
First, a brief background on India-Israel relations. India and Israel relations, which began in 1992, have evolved to a strong strategic relationship with defence as a key driver. Israel is a major defence supplier to India, while India is a major market for highly skilled labour for Israel. This relationship includes intelligence sharing as well as a joint approach to addressing issues related to regional security concerns. The visit of PM Modi to Israel in 2017, as well as other high-level interactions, indicates a desire to institutionalize strategic interactions, build upon operational interactions, and lay a foundation for trust in a complex regional context.
Second, increasing focus on emerging technologies and defence. India’s engagement with Israel takes place amid a growing emphasis on emerging technologies and defence in its economic and strategic planning. Key areas include artificial intelligence, quantum computing, fintech, cybersecurity, and critical minerals. Likewise, Israel’s technological expertise supports India in strengthening its defence, innovation, and start-up ecosystem. This visit can also help in aligning economic growth goals to foreign policy objectives, further underlining the strategic significance of the India and Israel collaboration.
Third, a brief background on their economic and bilateral trade relations. India and Israel's economic relations have been limited and largely focused on defence, with minimal engagement in technology, agriculture, and commerce. India aims to diversify beyond defence and make use of Israel’s expertise in innovation, digital payments, and agricultural technology. The PM Modi visit is a significant step towards this shift, with the aim to enhance trade with the free trade agreement, expand workforce opportunities, and institutionalise a broader economic collaboration.
What does it mean?
First, deepening and realigning India-Israel relations. Expansion of UPI to Israel, free trade negotiations and a five-year employment arrangement for 50,000 Indian citizens reflect the structural strengthening of India-Israel relations in the economic and Employment domains. MoUs promoting cooperation in cybersecurity, defence, artificial intelligence, agri-tech, and innovation reflect the opportunities for domestic growth of India through foreign investment, technology, and Israeli expertise. This reflects the paradigm shift from traditional defence cooperation to a broader and long-term relationship.
Second, structural strengthening of bilateral relations. The framework of a Special Strategic Partnership, government-to-government dialogue, and added ministerial-level dialogue in areas such as cybersecurity, defense, and space technology reflect the strengthening of the relationship between India and Israel. The agreements related to joint defense initiatives and intelligence cooperation reflect a planned and systematic engagement between the countries and highlight the trust and continuity in their relationship since India elevated its relationship with Israel in 2017.
Yesasvi Koganti is an undergraduate student in the Department of Political Science at Madras Christian College, Chennai.
