The India–Israel Strategic Partnership, formalised after the establishment of full diplomatic relations in 1992, has evolved into a multi-dimensional relationship encompassing defence, trade, technology, investment, and migration. Defence cooperation remains the core pillar, with India accounting for over 38% of Israel’s arms exports between 2014 and 2024. This includes advanced systems such as UAVs, radar apparatus, and missile defence technologies that strengthen India’s military capabilities.

Trade and economic engagement form another crucial dimension. Bilateral trade expanded from $200 million in 1992 to over$10.7 billion in 2022-23 before declining due to geopolitical disruptions. The trade basket includes refined petroleum products and diamonds on the export side, while imports feature diamonds, fertilisers, electronic integrated circuits, and defence equipment. Israeli FDI into India and Indian ODI into Israel—especially in cybersecurity, agriculture, and water management—reflect technological interdependence.

Additionally, mobility and people-to-people ties have grown, with around 32,000 Indian workers and nearly 900 students in Israel. Thus, the partnership today is comprehensive, spanning strategic security, economic cooperation, and societal linkages.

Defence cooperation with Israel is strategically significant because it provides India access to advanced military technology and rapid procurement capabilities. Israel’s expertise in missile defence, UAVs, surveillance systems, and electronic warfare complements India’s security requirements, especially given its complex regional security environment. The partnership has enhanced operational readiness and technological modernisation of India’s armed forces.

At the same time, India maintains a balanced West Asia policy, supporting the Palestinian cause and endorsing multilateral positions critical of settlement expansion. This demonstrates India’s commitment to strategic autonomy, separating bilateral defence cooperation from broader diplomatic principles. By engaging Israel while sustaining ties with Arab nations, India protects its energy security and diaspora interests.

Moreover, defence collaboration increasingly aligns with the ‘Make in India’ initiative, with Israeli firms partnering in domestic manufacturing. This reduces long-term import dependence and strengthens India’s indigenous defence industry.

Bilateral trade between India and Israel has grown significantly but remains concentrated in specific sectors. Refined petroleum products account for nearly 44% of India’s exports, while diamonds form about 22%. On the import side, raw diamonds constitute nearly one-third of imports, reflecting a value-chain model where India cuts and polishes stones before re-exporting them. Fertilisers, radar apparatus, and integrated circuits also feature prominently.

However, trade volatility has been evident. After peaking at $10.7 billion in 2022-23, trade declined sharply due to war-related disruptions and logistical challenges. The narrowing trade surplus—from$6.1 billion to $663 million—highlights vulnerability to geopolitical shocks and commodity concentration.

Economically, diversification into high-technology sectors such as cybersecurity, agri-tech, and water management is crucial. Expanding beyond petroleum and diamonds would enhance resilience and reduce exposure to global price fluctuations.

India’s decision to align with over 100 countries at the UN in criticising Israeli settlement expansion reflects its continued support for a rules-based international order and the two-state solution. Historically, India has supported Palestinian self-determination, and this stance remains embedded in its foreign policy principles.

Simultaneously, India has deepened strategic ties with Israel, particularly in defence and technology. This dual approach illustrates multi-alignment and pragmatic diplomacy. Rather than viewing relations as zero-sum, India separates normative positions from strategic cooperation. Such balancing allows India to safeguard defence interests while maintaining goodwill among Arab partners.

However, sustaining this equilibrium requires diplomatic finesse. Escalating conflicts or domestic political pressures could complicate policy choices. India’s approach thus represents a careful calibration of values and interests in a geopolitically sensitive region.

The recruitment of approximately 32,000 Indian workers in Israel, especially in construction, marks a significant expansion of labour mobility. After the Gaza conflict reduced Palestinian labour availability, Israel turned to India as a reliable workforce partner. This demonstrates how geopolitical disruptions can reshape labour markets and create new bilateral opportunities.

For India, overseas employment provides remittances, skill development, and livelihood opportunities. Structured labour agreements can institutionalise migration flows, ensuring worker protections and social security arrangements. The presence of Indian students further deepens people-to-people ties and educational cooperation.

Nevertheless, deploying workers in conflict-affected zones raises concerns about safety and welfare. Effective monitoring mechanisms, diplomatic engagement, and bilateral labour frameworks are essential to ensure that labour mobility remains a sustainable and mutually beneficial pillar of the partnership.