India-Israel Special Strategic Partnership

India-Israel Relations have been elevated to a “Special Strategic Partnership for Peace, Innovation & Prosperity”. Read here to learn more.

The recent State visit of the Prime Minister of India to Israel marked a watershed moment in bilateral ties. The relationship was elevated to a “Special Strategic Partnership for Peace, Innovation & Prosperity”, reflecting a multidimensional expansion, from defence and agriculture to fintech, artificial intelligence, and labour mobility.

Simultaneously, the successful conclusion of the first round of negotiations for the India-Israel Free Trade Agreement (FTA) in New Delhi signals a structured push towards deeper economic integration.

Evolution of India-Israel Relations

India formally established diplomatic relations with Israel in 1992. Over three decades, India-Israel cooperation expanded in:

• Defence and homeland security
• Agriculture and water management
• Innovation and start-ups
• Cybersecurity and emerging technologies

The elevation to a “Special Strategic Partnership” institutionalises this cooperation at a higher political and technological level.

Key Outcomes of the Prime Minister’s State Visit

Technology and Innovation Diplomacy

1. Indo-Israel Cyber Centre of Excellence (CoE)

A Letter of Intent (LoI) was signed to establish the Indo-Israel Cyber Centre of Excellence in India. It aims to:

• Enhance digital resilience.
• Showcase emerging cybersecurity technologies.
• Foster collaboration between government, academia, and industry.

This aligns with India’s push toward a secure digital infrastructure under Digital India.

2. Artificial Intelligence (AI) Cooperation

Two major MoUs were signed:

• Promotion of ethical AI development and civilian applications.
• AI-enabled education focusing on:
  • Human-centred learning.
  • Equitable access to AI tools.
  • Integration of AI and data literacy in education systems.

This is significant for India’s ambition to become a global AI innovation hub.

3. Horizon Scanning & Strategic Foresight

A Declaration of Intent (DoI) on AI-driven strategic foresight will enable:

• Risk assessment.
• Long-term technology planning.
• Policy simulation through advanced AI tools.

This adds a futuristic dimension to bilateral engagement.

4. Critical and Emerging Technologies

• The Joint Commission on Science and Technology (JCM) has been elevated to the Ministerial level.
• A new initiative on Critical and Emerging Technologies will be led by the National Security Advisors of both countries.

This places technology cooperation within a national security framework.

Economic Integration and Financial Cooperation

1. UPI Integration

A landmark MoU was signed to enable cross-border remittances using India’s indigenous Unified Payments Interface (UPI).

This move:

• Internationalizes India’s fintech infrastructure.
• Promotes digital financial connectivity.
• Supports Indian diaspora workers in Israel.

2. Financial Services Cooperation

MoU between:

• India’s International Financial Services Centres Authority (IFSCA)
• Israel Securities Authority (ISA)

Focus areas:

• Fintech
• RegTech
• Regulatory best practices

This strengthens India’s aspiration to develop GIFT City as a global financial hub.

3. Commercial Arbitration

Agreement between:

• Indian Council of Arbitration
• Israeli Institute of Commercial Arbitration

This promotes alternative dispute resolution mechanisms, improving the ease of doing business.

Labour Mobility and Employment

Three Implementation Protocols were signed to facilitate the regulated migration of Indian workers in sectors such as:

• Commerce and Services (retail, logistics, hospitality)
• Manufacturing (electronics, chemicals, textiles, food processing)
• Restaurants and food services

This:

• Boosts India’s demographic dividend.
• Ensures safe, regulated migration channels.
• Enhances remittance flows.

Agriculture, Fisheries and Allied Sectors

Agriculture has long been a pillar of cooperation between India and Israel.

1. India-Israel Innovation Centre for Agriculture (IINCA)

MoU between:

• Indian Council of Agricultural Research
• MASHAV

Focus areas:

• Precision farming
• Micro-irrigation
• Pest management
• Farmer capacity building

India also announced the creation of “Villages of Excellence” to scale Israeli agricultural best practices at the grassroots level.

2. Fisheries and Aquaculture

Cooperation includes:

• Disease management
• Mariculture technologies
• Seaweed R&D
• Sustainable aquaculture practices

This is significant for India’s Blue Economy ambitions.

Culture and Academic Collaboration

1. National Maritime Heritage Complex (NMHC), Lothal

Israel will collaborate with India in developing the National Maritime Heritage Complex (NMHC) at Lothal in Gujarat.

The project aims to:

• Celebrate maritime history.
• Promote archaeological research.
• Enhance tourism diplomacy.

2. Academic Exchange

MoU between:

• Nalanda University
• Hebrew University of Jerusalem

Fields of collaboration:

• Buddhist studies
• Mathematics
• Archaeology
• International relations

This strengthens people-to-people ties and intellectual diplomacy.

Strategic Significance for India

1. Diversification in West Asia

Israel remains a critical technology and defence partner. Strengthened ties complement India’s balanced engagement with other West Asian countries.

2. Technology as the New Pillar of Diplomacy

The visit demonstrates India’s shift toward:

• Tech-driven foreign policy.
• Innovation partnerships.
• Strategic autonomy through advanced technologies.

3. Economic Statecraft

The proposed India-Israel FTA can:

• Boost bilateral trade.
• Enhance value-chain integration.
• Facilitate technology transfer.

4. National Security Dimension

Cooperation in cyber security, AI, and critical technologies enhances resilience in an era of hybrid warfare.

Challenges

• India must maintain a strategic balance in West Asia.
• Sensitive geopolitical dynamics in the region require calibrated diplomacy.
• Labour mobility arrangements must ensure worker protection and compliance standards.

Conclusion

The elevation of India-Israel ties to a “Special Strategic Partnership for Peace, Innovation & Prosperity” reflects a mature, technology-driven, and future-oriented relationship. From AI and cybersecurity to agriculture and labour mobility, the partnership is increasingly comprehensive.

If effectively implemented, these initiatives can transform bilateral ties into a model of innovation-centric diplomacy, aligning economic growth, strategic autonomy, and global competitiveness.

UPSC Mains Practice Question

Q. “India’s relations with Israel are increasingly driven by technology and innovation rather than traditional defence cooperation.” Examine in the context of recent developments.