21 December 2022, NIICE Commentary 8447
Sakshi Giri and Shashank Kulkarni

Relations between India and Israel have traditionally been cordial and India has always been a supporter of Israel, and vice versa. Both nations have military and strategic connections. On September 17, 1950, India recognized Israel and since then they share similar interests, which has strengthened their bonds. Both countries’ strategic thoughts are similar in nature. A Jewish Agency established the first Israeli immigration office in Bombay and the first Indian embassy in Tel Aviv in January 1992 drew Indian attention to Israel. Since then, both nations have been planning and investing in many of each other’s projects and policies. Since 2007, Israel has been India’s military supplier. As a result of the Israeli-Palestinian conflict, 58 percent of Indians empathize with Israel, which has deepened ties.

Israel and India’s Defense Ties

India and Israel have been collaborating on military equipment since 1993, when Israel’s foreign minister, Shimon Peres, visited India and signed an agreement. It was a direct scientific and technology cooperation agreement between the two countries. India has been the largest customer of Israeli military weapons, and they have also played an important part in India’s war against terrorism. According to Israel’s president, Dr. Chaim Weizmann, BARAK 1 was the first weapon from Israel to India. India and Israel have been striving to expand defense relations in the areas of defense and information technology.

In November 2021, India’s Defence Research and Development Organization (DRDO) and Israel’s Ministry of Defense’s Directorate of Defense Research and Development (DDR&D) inked a bilateral agreement. The agreement’s goal was to encourage and expand IT-based technology innovation in addition to India’s access to Israeli weapons. India is one of Israel’s top three buyers of military and armaments and has a long history of defense cooperation. The two nations’ strategic interactions began during the Sino-India conflict of 1962 when Indian Prime Minister Jawaharlal Nehru requested armaments from Israeli Prime Minister David Bengurion. During the conflict with Pakistan in 1965, Israel supplied India with m-58 160-mm motor ammo. Israel was one of the countries that helped India during the 1998 nuclear test. During the decade, the arms trade grew. For the last two decades, Israel has been one of India’s leading arms suppliers.

Economic and Commercial Relations

Bilateral commercial and economic connections between India and Israel have grown substantially since their establishment in 1992. It was 1992 when USD 200 million was invested in diamonds, and the merchandise trade began in the same year, reaching USD 6.35 billion. The trade balance favored India from April 2021 to January 2022. USD 40 million were spent in India-Israel for industrial R&D and a technology fund for both nations’ initiatives. In January 2018, Israel and India inked nine agreements covering wide areas like solar energy, cyber security, oil and gas, space and research, and so on.

The main exported materials from India to Israel are textiles and textile articles, plastics, rubber, plant and vegetable products, mineral goods, precious stones, chemical and mineral products, machinery, and electrical equipment. Major Israeli exports include armory and military equipment, as well as machinery and electrical equipment, basic metals, defense, machinery, and transport equipment, pearls and precious stones, chemical and mineral goods. India and Israel have decided to reopen discussions for a Free Trade Agreement (FTA). Electronic machinery and high-tech items, communication systems, medical systems and equipment, and so on are all experiencing expansion.

Investment

Indian enterprises are expanding their reach through mergers and other alternative means of advancement. The State Bank of India built a branch in Tel Aviv in 2007, which was noteworthy. TATA consultant services (TCS) began operations in Israel in 2005, and NaanDan, an Israeli irrigation equipment manufacturing firm, was acquired by Jain Irrigation in 2012. Other important Indian companies with noteworthy locations in Israel during 2015-16 include Infosys, Tech Mahindra, and Wipro Infrastructure Engineering. The Lohia Group of India purchased the Israeli Defense Company Light and Strong. In 2013, the Tata Group contributed USD 5 million in Ramot’s momentum fund. Sun Pharma works with the Weizmann Institute of Science and the Technion Institute of Technology.

Israel accepted No-Contact Diplomacy

The Coronavirus has essentially halted global trade at a time when the virus has blanketed the whole globe, halting trillions of dollars in trade and confining billions to their homes. The pandemic, on the other hand, had little influence on India and Israel’s expanding partnership and connections. In fact, two nations not only collaborated to fight the pandemic but also became closer in times of need. Reuven Rivlin, President of Israel, and Narendra Modi, Prime Minister of India, were in contact to ask for each other’s assistance. A lot of individuals may learn from their friendship. The Israelis were taken aback by India’s no-contact diplomacy. In Israel, they began to follow suit. To halt the spread of the COVID-19 pandemic, Israeli Prime Minister Binyamin Netanyahu encouraged Israelis to greet one another with Namaste (an Indian greeting that differs from traditional handshakes). He discussed it at a press conference in Israel. He mentioned taking little steps, such as adopting and demonstrating the “Indian Namaste.” Accepting the Indian greeting culture, he says, would assist to minimise the transmission of the new Coronavirus by minimising intimate encounters between two individuals without touching. In an interview, he stated, “We love to hug,” and he went on to say, “We love to embrace.” “We enjoy shaking hands. Kissing is something we enjoy doing. But “Not any longer.” In terms of soft power diplomacy in Israel, India has always performed well. This recent development demonstrates how much both countries admire one another.