Israel, to many in India, is a security partner of choice – a country that faces similar regional challenges and has created a robust security architecture. Beyond the headlines, Israel has been a steadfast partner in agriculture, water management, high-tech, and startup sectors. Interestingly, each government in India since the 1990s has only nurtured ties with Israel, with significant success achieved in the non-security sphere. 

The current developments are an opportunity to deepen bilateral ties. India’s scale and Israel’s skills can be leveraged for extraordinary results, as the world braces for an artificial intelligence (AI) revolution.

The Startup Nation

For a country of Israel’s size and population, it is no easy feat to be called the "startup nation". Notwithstanding the political situation, Israel has the highest number of startups per capita. There are over 300 investments from Israel in India, mainly in the high-tech domain, agriculture, and water. These investments are varied in nature: manufacturing plants, research and development (R&D) centres, subsidiaries, joint ventures, and technology partnerships with the Make in India initiative. There is a growing preference for Israeli companies in sectors such as renewable energy, water technologies, homeland security, aerospace, defence, health, and real estate, in addition to traditional areas such as agriculture, cyber, and chemicals, among others.

Israel consistently punches above its weight in technology, entrepreneurship, and scientific advancement. 

From its inception in 1948, Israel’s harsh geopolitical environment and scarcity of natural resources demanded creative solutions and strategic thinking. Innovation wasn’t a luxury — it was essential for survival. This environment cultivated a national ethos that embraces problem-solving, resourcefulness, and long-term vision.

A crucial catalyst has been the Israel Defence Forces (IDF), particularly elite intelligence and technology units such as Unit 8200. These units serve as training grounds for future tech leaders, offering hands-on experience in leadership, cybersecurity, AI, communications, and complex systems — skills that later fuel the commercial tech ecosystem.   

R&D Investment

Israel leads the world in R&D investment relative to GDP. A large share of this investment comes from the private sector, reflecting a deeply embedded culture of innovation within industry. Government policy also prioritises R&D through strategic funding, tax incentives, and infrastructure development. Hundreds of multinational corporations have R&D centres in Israel, drawn by its talent, ingenuity, and innovative culture.

An R&D ecosystem between the Indian and Israeli private sectors to share the best practices should be considered as the next step. 

In fact, innovation and tech partnership is a key pillar of India-Israel bilateral ties. The two countries are working together towards building solutions to address modern-day challenges through the "India-Israel Innovation Bridge" initiative.

Tech Development

During his visit, Prime Minister Modi interacted with scientists, tech-entrepreneurs, and CEOs of various Israeli companies. He was briefed on the Israeli Quantum Computing Centre (IQCC) and by Classiq, which is simplifying quantum software development.

Others who engaged with the Prime Minister included the AISAP, a start-up, demonstrating its AI-powered point-of-care ultrasound, which provides real-time diagnostic guidance. The Horizon Scanning Division of the Israeli Ministry of Science and Technology presented "Tech Scout," an AI-driven tool for strategic risk detection and trend analysis.

Mobileye, a tech-enterprise, showcased its sensor and chip technology aimed at reducing road accidents. Besides, Check Point Software Technologies highlighted its advanced threat prevention solutions and its collaborations in India. The Geophysical Institute demonstrated high-resolution modelling for quantifying mineral resources, and Israel Aerospace Industries presented its miniaturised communications satellites and integrated Synthetic Aperture Radar. 

Defence Ties

The defence relationship has already been growing fast. Israel has agreed to arms deals with India, worth approximately US$8.6 billion, this year, covering precision-guided munitions, air-to-surface missiles, and ballistic missile systems from Rafael, Elbit Systems, and Israel Aerospace Industries.    

Besides the India-Israel FTA, India would also need to keep the focus on expanding its ties with the Arab World and its market. 

India-GCC FTA

The India-Gulf Cooperation Council (GCC) FTA will open up a plethora of opportunities. The FTA holds significant potential to unlock and expand trade with an important region with which India has longstanding historical ties in trade and commerce. GCC is India's largest trading partner bloc, with bilateral trade reaching US$178.56 billion in FY 2024-25, accounting for 15.42% of India’s global trade. In the last five years, India’s trade with the GCC has expanded steadily, registering an annual average growth rate of 15.3%.  

The GCC is also home to nearly ten million members of the Indian community, acting as a living bridge between both countries. These strong and enduring people-to-people connections form the foundation of the relationship between India and GCC countries, which is further reinforced by the substantial presence of Indian companies across the region.

(The writer is a commentator on geopolitics. Views are personal.)