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India and Israel have become strategic partners amid a rapidly evolving geopolitical scenario. The political ties between the two nations are very warm and forward-looking.
India Israel Relation – Background
India and Israel gained their independence from the UK within months of each other, but they headed in different directions for nearly four decades – India as a leader in the NAM maintained close relations to the Arab world and the Soviet Union; Israel established close ties with the US and Western Europe.
Although India publicly kept a distance from Israel until the late 1980’s, there was in fact a great deal of bilateral activities between the two countries in the preceding years.
In 1992, full diplomatic relations were established between the two countries
- since then, defence and agriculture have been the main pillars of bilateral engagement
- India and Israel elevated their bilateral relationship to that of a “Strategic Partnership” in 2017.
- India and Israel will celebrate 30 years of upgradation of diplomatic relations in 2022.
In recent years, relations have seen rapid growth across a broad spectrum of areas and the future vision of the cooperation is of a strong hi-tech partnership as befits two knowledge economies.
Areas of Cooperation
Economic and Commercial Relations – Bilateral trade between the two countries has increased from $200 million in 1992 to more than $5.65 billion (excluding defence) in 2018-19, with the balance of trade in India’s favour
- Trade in diamonds constitutes about 40% of bilateral trade.
- In recent years, bilateral trade has diversified into several sectors such as pharmaceuticals, agriculture, water, IT, and telecom
Agriculture – both have a bilateral agreement (India-Israel Agriculture Cooperation Project) for cooperation in Agriculture.
- India has benefited from Israeli expertise and technologies in horticulture mechanization, protected cultivation, orchard and canopy management, nursery management, micro-irrigation, and post-harvest management.
- Israeli drip irrigation technologies and products are now widely used in India.
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Defence & Security – Israel is the 3rd largest supplier of arms to India after Russia and the US.
- India imports critical defence technologies from Israel, ranging from Barack missiles to powerful Phalcon radar on AWACS (Airborne Warning and Control System).
- Israel was one of the few countries that chose not to condemn India’s Pokhran nuclear tests in 1998.
Science & Technology – several MoUs have been signed in various fields of S&T.
- MoU for establishing India Israel Industrial R&D and Innovation Fund (i4F).
- India-Israel Cooperation Fund aimed at promoting innovations through joint scientific and technological collaborations.
Counter-terrorism – India-Israel counterterrorism cooperation is quite robust and has been scaled up gradually over the last few years through a joint working group on terrorism.
- India is adopting hi-tech anti-infiltration systems and innovative tactics from Israel to safeguard its western and eastern border.
Tourism – a growing aspect of bilateral relationship between India and Israel
- Every year 30-35 thousand Israelis visit India for tourism business and other purposes and about 40,000 Indians visit Israel every year mostly for pilgrimage.
Cultural Ties – India has welcomed Jews for several centuries and their contribution has enriched Indian culture.
- India is known in Israel as an ancient nation with strong cultural traditions and as an attractive tourist destination
- India and Israel signed a Cultural Exchange Programme (for the period of 2020-23) in August 2020 to facilitate bilateral cultural exchanges spanning all fields of art and culture, including youth exchanges.
Areas of Differences
- Difference in terms of Iran – Israel considers Iran an existential threat, while India, on the other, has a historical relationship
- India finds the cooperation useful for energy supplies, and an alternative route through Chabahar port to Afghanistan and Central Asia
- Different approach towards Arab world – While Israel has inherent differences with Arab countries, India has significant stakes there
- India’s recent vote at the UN against America’s move on Jerusalem was a reflection of that underlying reality.
- Stand on China – China is Israel’s largest trading partner in Asia, there are strong technology and investment linkages.
- In terms of Pakistan – Israel’s interest lies in keeping open the possibility of relations, while there are serious tensions among India and Pakistan.
- Technology Transfer– There exist differences between India and Israel over issues related to technology transfer, end-user agreements and a proposed free trade agreement, more so given India’s policy of ‘Make in India’.
- Free trade agreement (FTA) is stuck because of the concerns from the Indian domestic industry.
Way Forward
- Boosting Trade – The two sides must expedite talks on trade and investment to take bilateral ties to the next level
- There is need for a Free Trade Agreement (FTA) as well as a Bilateral Investment Treaty (BIT) at the earliest to forge greater business-to-business ties.
- India should utilize Israel’s superiority in water conservation techniques to address its water stressed conditions and to clean polluted rivers.
- India can leverage its space technologies to Israel for its developmental purposes where India enjoys upper hand.
- India could well take a cue from how Israel maintains stringent external and internal security, allowing Israeli settlements right up to the border of conflict zones.
- India could adopt the three-layered Israeli strategy that goes beyond security to build a cyber system that is robust, resilient and has strong defence capabilities.
- Both need to cooperate to combat growing radicalisation and terrorism, including in cyber space.
Israel wants India to end its pro-Palestine policy. Considering the defence and technological ties with Israel, India can’t ignore Israel. However, while going beyond strategic relations with Israel, India cannot afford to ignore its crucial energy ties with Iran and the Gulf countries.
Hence, the Indo-Israeli bilateral ties will increasingly be shaped by the rapidly evolving geopolitical realities in Asia and the Middle East.
Previous Year Questions
“India’s relations with Israel have, of late, acquired a depth and diversity, which cannot be rolled back.” Discuss (2018)