India-Israel Relations, Walking a Tightrope Between Strategic Partnership and Geopolitical Complexity
The relationship between India and Israel has evolved dramatically since the establishment of full diplomatic relations in 1992. From a once-tentative engagement, it has blossomed into a multifaceted strategic partnership encompassing defence, trade, technology, agriculture, and people-to-people ties. Yet this partnership exists within a complex geopolitical landscape that requires careful navigation.
Diamonds make up about a third of India’s total imports from Israel. Diamonds are imported as rough stones from Israel, cut and polished in India, and then exported back as finished products. Mineral or chemical fertilizers, electronic integrated circuits and radar apparatus are also significant imports from Israel. This trade relationship, while substantial, represents only one dimension of a much deeper engagement.
The Defence Partnership
Defence cooperation remains the cornerstone of the India-Israel strategic partnership. Over the past decade, India has emerged as one of the largest importers of Israel’s arms and ammunition. According to data from the Stockholm International Peace Research Institute, India accounted for over 38% of Israel’s arms exports between 2014 and 2024.
This is not a relationship of equals in the traditional sense—Israel is a much smaller country—but it is a relationship of mutual benefit. Israel gains a reliable customer and a strategic partner in Asia. India gains access to cutting-edge military technology that might otherwise be unavailable. The partnership includes missile systems, unmanned aerial vehicles, radar systems, and a range of other defence equipment.
Investment Flows
Israel’s cumulative foreign direct investment into India crossed $347 million between 2000 and September 2025, according to government data. Israel has made over 300 investments in India, mainly in the technology domain. These are not just portfolio investments; they represent long-term commitments to the Indian market.
Indian companies too have invested in Israeli technology firms, particularly in the cybersecurity, agriculture, water management, and electric mobility sectors. The cumulative overseas direct investment from India between April 2000 and April 2025 was $443 million. This two-way flow of investment creates mutual dependencies and shared interests that go beyond simple trade.
The partnership also aligns with the ‘Make in India’ push, with Israeli firms increasingly collaborating with Indian companies to manufacture equipment locally. This is not just about buying finished products; it is about building capabilities, transferring technology, and creating jobs.
Migration and Mobility
Another key dimension of the relationship is migration and mobility. As of 2024, around 32,715 Indians travelled to Israel, up from about 27,196 in 2023. A significant portion of this movement is linked to employment.
Official data show that there were around 32,000 Indian workers in Israel as of October 2024, many of whom were recruited after the outbreak of the Gaza conflict to replace Palestinian labour in the construction sector. This is a sensitive dimension of the relationship. India’s willingness to supply workers during a conflict, and Israel’s willingness to accept them, speaks to the depth of trust between the two countries.
There are also about 900 Indian students studying in Israel. Education is a long-term investment in relationship-building. Students who study in Israel return to India with knowledge, connections, and a positive orientation toward the country.
The Diamond Connection
The data show that diamonds constitute a third of India’s imports from Israel. This is not a simple import relationship; it is a complex value chain. Rough diamonds are imported from Israel, cut and polished in India’s thriving diamond industry, and then exported as finished products to markets around the world.
This relationship has deep historical roots. India’s diamond cutting industry, centred in Surat, has long been connected to the global diamond trade centred in Antwerp and Tel Aviv. The India-Israel diamond connection is a testament to the globalised nature of the industry and the complementary strengths of the two countries.
The Trade Picture
Beyond diamonds, India’s exports to Israel include refined petroleum products, rice, parts of communication equipment, and parts of arms and accessories. Imports include fertilisers, electronic integrated circuits, and radar apparatus.
The trade relationship is substantial and growing, but it is also lopsided in certain ways. India imports more from Israel than it exports, reflecting the high value of defence and technology imports. This is not necessarily a problem, but it is a reality that policymakers must manage.
Walking a Tightrope
India’s relationship with Israel exists within a broader geopolitical context that includes India’s traditional support for the Palestinian cause, its large Muslim population, and its relationships with Arab and Muslim countries in West Asia.
India has historically supported the Palestinian cause and voted for Palestinian rights in international forums. This creates a tension with the deepening relationship with Israel. Indian policymakers must walk a tightrope, balancing the strategic benefits of the Israel relationship with the political sensitivities at home and abroad.
The data were sourced from the Ministry of Commerce and Industry, the Stockholm International Peace Research Institute, the Department for Promotion of Industry and Internal Trade, the Ministry of External Affairs, and the Lok Sabha. These official sources provide a reliable picture of a relationship that is substantial and growing.
The Future
The India-Israel relationship is likely to continue deepening. Defence cooperation will remain central, but technology, agriculture, water management, and cybersecurity will become increasingly important. India’s ‘Make in India’ initiative and Israel’s reputation as a “startup nation” create natural synergies.
The challenge will be managing the geopolitical complexities. India’s relationships with Iran and with Arab countries will require careful calibration. But for now, the trajectory is clear: India and Israel are building a partnership that serves both countries’ interests.
Q&A: Unpacking India-Israel Relations
Q1: What is the scale of India’s defence imports from Israel?
According to SIPRI data, India accounted for over 38% of Israel’s arms exports between 2014 and 2024. Defence cooperation is the cornerstone of the strategic partnership, including missile systems, UAVs, radar systems, and other military technology. This makes India one of Israel’s most important defence partners.
Q2: What is the role of diamonds in India-Israel trade?
Diamonds make up about a third of India’s total imports from Israel. Rough diamonds are imported from Israel, cut and polished in India (mainly in Surat), and then re-exported as finished products. This reflects the complementary strengths of India’s cutting industry and Israel’s position in the global diamond trade.
Q3: What is the scale of investment flows between the two countries?
Israel has made over 300 investments in India, cumulatively crossing $347 million between 2000 and 2025, mainly in technology. Indian companies have invested $443 million in Israeli technology firms, particularly in cybersecurity, agriculture, water management, and electric mobility. Two-way investment creates mutual dependencies beyond trade.
Q4: How has migration and mobility evolved?
Indian travellers to Israel increased from 27,196 in 2023 to 32,715 in 2024. Around 32,000 Indian workers were in Israel as of October 2024, many recruited after the Gaza conflict to replace Palestinian labour in construction. About 900 Indian students study in Israel, representing long-term investment in relationship-building.
Q5: What geopolitical tensions does India navigate in this relationship?
India must balance its deepening ties with Israel against its traditional support for the Palestinian cause, its large Muslim population, and its relationships with Arab countries. This requires careful diplomacy to maintain strategic benefits while managing domestic and international sensitivities.
