Estrangement to Engagement: India’s Diplomatic & Defense ties with Israel

Policy Update
Mohd Asif

From the Lenses of History

In 1947, as the UN General Assembly signaled the inevitability of partitioning Palestine, India opted for a cautious “wait and watch” approach due to regional hostilities and its own recent traumatic experiences from partition. Although India recognized Israel as the 54th UN member in 1949, it opposed granting full UN membership to Israel on the grounds that the Jewish state had been established through war rather than negotiation, thereby showing a preference for the Palestinian stance.

In 1950, Nehru verbally recognized Israel, and on September 17, 1950, India formally established diplomatic relations with Israel—while clarifying that its position on Palestine remained unchanged. Relations were later strained by the Suez Crisis in 1956, yet India continued to maintain a balanced approach, engaging with both Arab nations and Israel.

Policy shifts under different Government

In 1980, after Indira Gandhi returned to power, India’s approach to Israel and the Arab world remained cautious. Despite the Soviet invasion of Afghanistan in 1979, India refrained from condemning the attack and allowed the PLO to open a mission to avoid alienating Arab nations. India’s criticism of Israel’s actions against Iraq and Lebanon led to the expulsion of Israeli counsel Yossef Hassin, marking a low point in Indo-Israeli relations.

The election of Rajiv Gandhi as Prime Minister in 1984 signaled a shift. Educated at Cambridge, Rajiv attempted to soften India’s traditionally pro-Arab stance. Although not entirely reversing it, he engaged with Israel by meeting with Shimon Peres and taking steps to improve relations, such as permitting the Israeli tennis team to tour India in 1987. Despite these measures, India’s criticism of Israel persisted when it condemned the 1985 attack on PLO offices and abstained on certain UN resolutions.

Following Rajiv Gandhi’s assassination and the subsequent rise of Narasimha Rao, India gradually recalibrated its foreign policy. The collapse of the Soviet Union in 1991—when India’s military was heavily reliant on Soviet equipment—paved the way for enhanced defense ties with Israel. Recognizing Israel’s technological edge and its ability to upgrade Soviet-era weaponry, India began strengthening defense cooperation, which was further cemented by full diplomatic relations established in 1992. The evolution continued under the BJP government from 1998 onwards, with senior leaders visiting Israel and significant defense agreements being signed.

In 2003, during Ariel Sharon’s visit, Israel provided India with advanced weapons and surveillance systems worth $14 million. The cooperation expanded into agriculture, trade, healthcare, and research, alongside joint efforts to combat terrorism. The relationship reached a strategic level in 2017 when the Indian Prime Minister’s visit to Israel culminated in both countries agreeing to further elevate their partnership.

Core reasons that compelled India to make a shift in its Israel policy are:

  1. The stand of OIC on the Kashmir issue.
  2. Internal divisions within the Arab world in the ongoing Gulf War.
  3. Jordan (Madrid Conference-1991) and Egypt (Camp David Accord-1978) had already signed a peace treaty with Israel.
  4. PLO and Israel initiated peace talks in 1993 in Oslo leading to the tectonic Oslo Accords.
  5. The Indian economy required support from the USA, which made financial assistance a prerequisite for improving relations with Israel.
  6. India needed a defence partner (which the USA eventually became) after the disintegration of the Cold War and the demise of the USSR.
  7. China, too, gave diplomatic recognition to Israel at the end of the Cold War prior to West Asia peace talks, thereby shifting its own Cold War policy.

Bilateral Relations

In a historic move, Indian PM Narendra Modi became the first Indian PM to visit Israel, marking a shift from India’s traditional low-profile approach. The visit de-hyphenated Israel and Palestine in Indian foreign policy while maintaining support for the Palestinian cause, evident in Modi skipping a visit to Palestine. Both nations signed strategic agreements worth $4.3 billion and established a $40 million India-Israel Innovation Fund for bilateral R&D. Cyber defense was identified as a priority area, along with cooperation in agriculture and water management. 

The two sides had decided to sign the following agreements:

  1. Set up India-Israel Research and Development and Technology Innovation Fund.
  2. Plan of cooperation regarding atomic clocks.
  3. MoU on Geosynchronous Earth Orbit and Low Earth Orbit optical link.
  4. India-Israel Development Cooperation- 3-year work programme in agriculture from 2018 to 2020.
  5. MoU on electric propulsion for small satellites.
  6. Cooperation in utility reforms.

Economic and Industrial Cooperation

India and Israel have significantly deepened their diplomatic and economic ties in recent years. Key engagements include the 16th Foreign Office Consultations in December 2020 and the inaugural Policy Planning Dialogue in October 2020. In 2022, the two nations celebrated 30 years since upgrading their diplomatic relations.

Economic collaboration is also thriving, with major Indian IT firms such as TCS, Infosys, Tech Mahindra, and Wipro expanding operations in Israel. The India-Israel CEO Forum—initiated during PM Modi’s 2017 visit and further strengthened during PM Netanyahu’s visit—has further bolstered business relations. Israeli investments in India are evident in sectors like renewable energy, real estate, and water technologies, with cumulative FDI figures of approximately $118 million from India to Israel and $224.76 million from Israel to India. High-level political engagements have reinforced these ties, including PM Modi’s meeting with Israeli PM Naftali Bennett at COP26 in November 2021 and the annual India-Israel Joint Working Group on Defence meeting in October 2021.

Defense Trade and Security Relations

India and Israel share strong defense ties, with Israel providing direct military assistance during the Kargil War and training Indian forces, including MARCOS and NSG. Defense cooperation includes goodwill naval visits, joint exercises like Blue Flag 2021, and high-level military exchanges. In 2022, Defense Ministers Benjamin Gantz and Rajnath Singh signed the India–Israel Vision on Defense Cooperation, a 10-year roadmap to enhance collaboration in emerging technologies, marking 30 years of diplomatic relations.

Barak-8 Missile System Agreements  

On October 24, 2018, Israel Aerospace Industries (IAI) announced that India had signed a $770 million contract. Under this deal, Barak-8 Long-Range Surface-to-Air Missile (LRSAM) systems were to be installed on seven Indian Navy warships. This agreement was made between IAI and Bharat Electronics Limited (BEL).  

Earlier, in September 2017, Indian shipbuilders Mazagon Dock Shipbuilders Limited (MDL) and Garden Reach Shipbuilders & Engineers (GRSE) signed a $1.2 billion deal with BEL for seven Barak-8 missile systems.  In  May 2017, IAI and BEL  finalized another contract worth  $630 million, under which four Barak-8 missile systems were supplied to the Indian Navy.  

Medium-Range Surface-to-Air Missile (MRSAM) System  

In April 2017, Israel Aerospace Industries (IAI) and Bharat Electronics Limited (BEL) signed a $2 billion contract to develop the land-based version of the Barak-8 missile, known as the Medium-Range Surface-to-Air Missile (MRSAM), for the Indian Army. This system was co-developed by IAI and India’s Defense Research and Development Organization (DRDO). 

The Barak-8 system has been deployed on Visakhapatnam-class and Kolkata-class destroyers, Kamorta-class warships, Project 17A frigates, and the INS Vikrant, which is India’s first indigenous aircraft carrier. By September 2018, total global sales of the Barak-8 missile system had reached $6 billion.

India’s Purchase of Israeli Defense Equipment  

Between 2001 and 2021, India acquired $4.2 billion worth of weapons from Israel.  Under Project “Cheetah”, India is upgrading its Heron drones for ₹5,000 crore. These drones will be equipped with satellite navigation, advanced sensors, and strike capabilities.  

Major Israeli Defense Systems Used by India 

India employs a wide range of advanced Israeli defense systems to enhance its operational capabilities across multiple domains. In the missile category, India utilizes the Derby and Python-5, both beyond visual range air-to-air missiles (BVRAM), along with the Heron loitering munition. The SPICE-2000 precision-guided bomb further refines strike accuracy, while the Popeye-1 air-to-surface missile (ASM) and the SkyStriker loitering munition provide additional versatility in both offensive and defensive roles.

In the realm of unmanned aerial vehicles (UAVs), the Heron, Searcher Mk-II, and Harop systems are deployed to perform critical surveillance and combat tasks without endangering pilots. Complementing these aerial assets, a variety of radars and sensors have been integrated into India’s defense infrastructure. These include the EL/M-2075 Phalcon, an airborne early warning radar; the multi-function EL/M-2248 MF-STAR; and the multi-mission EL/M-2084 radar. Naval operations benefit from the ELM-2238 radar, while the EL/M-2052 fire control radar and the Litening infrared targeting pod further enhance target acquisition and engagement.

For air defense, India relies on systems such as the Spyder, a medium-range missile system, and the Barak SAM system, both of which significantly bolster the nation’s aerial defense posture. Additionally, the Negev NG-7 light machine gun is among the other weapons that contribute to India’s overall combat readiness.

Challenges

India faces geopolitical challenges in balancing its growing defense ties with Israel while maintaining strong relations with the Middle East, especially Iran and the Gulf nations. Israel’s trade with China raises concerns for India, given its rivalry with Beijing. U.S. foreign policy shifts, Pakistan’s suspicions, and cybersecurity risks also impact bilateral cooperation. Defense procurement challenges include high costs, limited technology transfers, and delays in joint projects, affecting India’s self-reliance goals. Domestic political sensitivities, opposition from pro-Palestinian groups, and potential leadership changes in both countries add further complexities to India-Israel relations.

Way Forward

To navigate the complexities in India-Israel defense and diplomatic ties, a forward-looking approach must be both strategic and adaptive. First, India should deepen institutional mechanisms for defense collaboration, ensuring that joint ventures emphasize technology transfer and local manufacturing under the “Make in India” initiative. This will reduce long-term dependency on Israeli imports while fostering indigenous defense capabilities. A structured defense dialogue, akin to the 2+2 ministerial meetings India holds with key partners, could enhance synergy in security cooperation.

Diplomatically, India must maintain its strategic autonomy by balancing its ties with Israel, the Gulf nations, and Iran. A pragmatic approach would involve engaging in trilateral or multilateral forums where Israel and Arab nations participate together, thereby demonstrating India’s role as a bridge-builder in West Asia. Leveraging Israel’s expertise in cybersecurity and artificial intelligence for civilian and strategic applications can provide India with a technological edge while ensuring that national security concerns are addressed through

References

About the contributor– MOHD ASIF is a research intern at IMPRI. He Studied peace and conflict studies from Jamia Millia Islamia New Delhi. 

Acknowledgment– The author would like to thank Dr. Arjun Kumar, who helped throughout this article and reviewed the same.

Disclaimer: All views expressed in the article belong solely to the author and not necessarily to the organisation.

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