A huge delegation arrived in India to promote mutual trade
About 100 Israeli leaders visited India for an economic delegation, led by Israel’s Minister of Economy & Industry, Mr. Nir Barkat
On February 2025, a large economic delegation led by the Israeli Minister of Economy and Industry, Mr. Nir Barkat, visited India. This delegation, organized by the Israeli Export Institute and the Ministry of Economy and Industry, symbolizes Israel’s efforts to strengthen its economic ties with one of the fastest growing and most dynamic markets in the world. India was carefully selected as the target market by Minister Barkat, due to the immense potential of the Indian economy and its geostrategic importance, and the significant impact that collaboration with the local industry can bring to Israel’s economy.
The connection with the Indian market will allow Israel to expand its business opportunities and serve as an important catalyst for economic growth across various sectors. This delegation also highlighted Israel’s intentions to turn regional challenges into international opportunities, by strengthening economic and business ties with countries like India, which plays a significant role in the global arena.
India – A Key Player in the Economic Landscape
India is a key player in the strategic and economic landscape of Asia. Its collaborations with many countries in Asia open numerous opportunities for Israel to expand its influence and enter new markets. Cooperation in various fields such as renewable energy, advanced manufacturing, water technologies, and ag-tech can help Israeli companies penetrate the developing markets of Southeast Asia, positioning Israel as a major player in Asia with a valuable contribution in smart technologies. By strengthening its relations with India, Israel will be able to participate in regional projects in future and become a technological partner in various fields, enhancing its regional and global influence.
India is a natural and welcoming partner. In India, there are some political circles and organizations expressing anti-Israel views, but the BDS movement itself is not active as it is in Europe or the U.S. These movements are marginal and have not managed to significantly influence the Indian government’s policies. With its large population, economic interests, and historical relations with Israel, India is not inclined to avoid connections with countries or companies due to boycott campaigns, especially when it comes to strategic relations with Israel.
The IMEC Project and its Ramifications
One of the strategic projects currently being promoted is the IMEC (India-Middle East-Europe Economic Corridor) project. The aim of the project is to create an economic corridor that will connect India with the Middle East and Europe through marine and land transportation infrastructure, thereby overcoming significant challenges in trade and transportation in the region, including trade delays, high costs, and threats to freedom of navigation – such as those posed by the Houthis in the Red Sea. Israel can serve as a central “gateway” to this corridor, thanks to its strategic geographic location in the Middle East.
The planned project could strengthen ties between Israel and Middle Eastern countries and lead to the creation of new business opportunities in various fields. It could also serve as a catalyst for economic growth for Israel, both in terms of regional connections and technological collaborations that could lead to broader global influence.
Moreover, India focuses primarily on promoting its own economic and security interests, and Israel is seen as an important partner in this regard. Cooperation in the fields of high-tech, security, cyber, and ag-tech provides significant strategic value for India. The focus in India is on strengthening the local economy and addressing internal challenges, not on political sanctions or boycotts. Therefore, India seeks to establish close ties with Israel due to the many advantages it sees in cooperation, particularly in the security and technological sectors.
Strengthening Relations between Israel & India
Relations between Israel and India have strengthened significantly in recent decades, especially since the 1990s, with the renewal of diplomatic ties after decades of covert relations. These ties are developing, based on ongoing dialogues and cooperation in security and technological fields. The visits of Israel’s Prime Minister Benjamin Netanyahu to India and meetings with Indian Prime Minister Narendra Modi are signs of the growing economic and strategic relationship between the two countries. During PM Netanyahu’s most recent visit to India, in 2018, both sides renewed their commitment to cooperation in areas such as cyber, agriculture, and new technologies.
The delegation to India was primarily economic and consisted of about 100 senior officials, businesspeople, and industry leaders. It also included senior representation from the Israeli industry, among them the Director General of the Ministry of Economy and Industry, the President of the Manufacturers’ Association, the Chairman of the Israel Export Institute and many other dignitaries. The delegation had hundreds of business meetings with decision-makers, heads of organizations and key figures in India industry. In addition, the Foreign Trade Administration in the Ministry of Economy and Industry and the Israel Export Institute organized a series of business seminars and roundtables with the participation of Israeli and Indian businesspeople, aimed at creating collaborative opportunities and promoting long-term business relationships.
Key quantitative data points on trade between Israel and India:
- Annual Trade Volume: Trade between Israel and India stands at approximately $4.7 billion annually (excluding diamond trade), with a growth of about 90% over the last decade.
- Global Trade Ranking: India is Israel’s 6th largest trading partner, and 5th largest (including diamonds). For India, Israel is a major export destination, representing around 3% of India’s total exports.
- Israeli Exports to India: India is the 6th largest destination for Israeli exports, totaling $3 billion, including software services, electronic components, medical devices, advanced agricultural equipment and fertilizers.
- Business Services Trade: About a third of the trade between the two countries is in business services, highlighting significant collaborations in technology and consulting services.
- Technology Exports: Israel has seen notable growth in technology exports to India, especially in fields such as precision agriculture, water technologies, cleantech, and security.
Both sides renewed their commitment to cooperation in areas such as cyber, agriculture, and new technologies. The Israeli delegation to India
Photos: Courtesy of Israel Export Institute and Israel-Asia Chamber of Commerce
