India-Israel Commitment to Strengthen Ties
Context:
In a significant move to bolster economic collaboration, India and Israel have reaffirmed their commitment to enhancing bilateral trade and infrastructure ties.
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- Commerce and Industry Minister Piyush Goyal set an ambitious goal of increasing bilateral trade tenfold from the current $6.5 billion, though no specific timeline was provided.
- Israeli Economy and Industry Minister Nir Barkat, who led a high-level business delegation to India, reiterated Israel’s determination to advance the India-Middle East-Europe Economic Corridor (IMEC), a project aimed at fostering global trade connectivity.
Ambitious Trade Goals and Strategic Collaboration
- Goyal identified several key sectors with significant potential for cooperation, including deep tech, fintech, agritech, cybersecurity, defense, artificial intelligence (AI), water conservation, quantum technologies, and renewable energy.
- He also highlighted India’s cost-effective innovation ecosystem, citing the Mars mission as an example of achieving groundbreaking results at a fraction of global costs.
India and Israel Ties
India and Israel have a comprehensive economic, military, and political relationship that has strengthened significantly since the establishment of full diplomatic relations in 19921. While India recognised Israel in 1950, it wasn’t until 1992 that full diplomatic ties were established, with embassies opening in Tel Aviv and New Delhi.
Historical Context and Strategic Shift
- Initially, India maintained a non-aligned and pro-Arab stance.
- However, growing strategic interests and shared security threats, especially those related to Islamic terrorism, fostered closer ties.
- Israel provided crucial support to India during the Indo-Pakistani wars, supplying arms, ammunition, and intelligence.
- India’s policy of “de-hyphenation” has allowed it to maintain its relationships with Israel and Palestine independently.
Key Aspects of the Relationship
- Defense Cooperation: India has imported approximately $2.9 billion worth of military hardware from Israel over the past decade, including radars, drones, and missile systems.
- Joint projects such as the Barak-8 surface-to-air missile system exemplify this collaboration, enhancing India’s air defense capabilities.
- Economic Ties: While bilateral trade reached a peak of US$ 10.77 billion in FY 2022-23, it decreased to $6.53 billion in 2023-24, influenced by regional security issues and trade route disruptions.
- India’s exports to Israel in 2023-24 were $4.5 billion, including petroleum products ($2.3 billion) and gems and jewellery ($792 million).
- Both countries are negotiating a free-trade agreement focused on IT, biotechnology, and agriculture.
- Strategic Partnership: India and Israel are strategic partners with warm and forward-looking political ties.
- India and Israel engage in multilateral frameworks like the U.S.-led I2U2 group (India, Israel, the UAE, and the U.S.) to address regional security challenges.
- Cultural Connections: Civilizational relations date back over two millennia, with India welcoming Jews and their contributions enriching Indian culture.
As India and Israel continue to deepen their ties, the focus remains on creating a robust framework for collaboration that not only enhances bilateral trade but also contributes to global innovation and connectivity. With a shared vision and complementary strengths, the partnership between India and Israel is poised to achieve transformative outcomes in the years to come.
