Historic India-Israel Deal Boosts Defence, Cybersecurity, and Economic Cooperation

Strategic Investment Agreement

India and Israel have signed a major investment deal to boost trade, technology, and defence cooperation. The agreement was finalized in New Delhi by Israeli Finance Minister Bezalel Smotrich and Indian Minister Nirmala Sitharaman during Smotrich’s visit.

The deal focuses on cybersecurity, defence technology, innovation, and high-tech industries. It will create new opportunities for companies in both countries.

Boosting Economic Cooperation

India’s Ministry of Finance called the deal a “historic milestone”. It aims to improve digital payments, fintech innovation, infrastructure, and financial regulation.

Smotrich said the pact will strengthen Israeli exports, attract investors, and support business growth.

Bilateral trade reached $3.9 billion in 2024, while investments are around $800 million. Defence and security remain the largest trade sectors. India is Israel’s top weapons buyer.

Gaza Conflict and Global Concerns

The deal comes amid criticism of Israel’s ongoing war in Gaza, which has reportedly killed over 64,000 Palestinians since October 2023.

India has maintained close ties with Israel, including arms transactions during the conflict. Pro-Palestine protests in India have been restricted, while pro-Israel rallies are allowed.

India supports a two-state solution but has abstained from UN resolutions calling for a Gaza ceasefire.

Labour and Education Ties

Israeli construction firms may hire up to 100,000 Indian workers, replacing Palestinian laborers whose permits were revoked.

India is also the largest source of foreign students in Israel, strengthening education and cultural ties.

India’s Strategic Moves

India has mended ties with China and joined SCO declarations condemning some U.S.-Israeli actions. This shows a careful balancing of its foreign policy.