India Israel Trade
India is Israel’s second-largest trading partner in Asia and the seventh-largest globally.
Last updated: Feb, 2025
Introduction
India is Israel’s 2nd trading partner in Asia and the 9th largest globally. Bilateral trade has been majorly dominated by diamonds and chemicals. However, recent years have seen an increase in trade in areas such as electronic machinery and high-tech products; medical equipment; communications systems, etc. The two nations celebrated 30 years of the upgradation of bilateral ties to full diplomatic relations earlier in 2022.
India-Israel Trade
- From US$ 200 million in 1992 (comprising primarily of diamonds), merchandise trade diversified and reached US$ 6.53 billion (excluding defence) in FY24 with the balance of trade being in India’s favor.
- India is Israel's second-largest trade partner in Asia and seventh largest globally.
- Nearly 300 Israeli companies have invested in India.
- Major exports from India to Israel include pearls and precious stones, automotive diesel, chemical and mineral products, machinery and electrical equipment, plastics, textile and apparel products, base metals and transport equipment, agricultural products.
Major exported items from India to Israel with amount & quantity
- India exported 3,066 commodities to Israel in FY24.
- India’s export to Israel stood at US$ 4.53 billion in FY24.
- Major exported items from India to Israel include petroleum products (US$ 2.32 billion); followed by Gems and Jewelry (US$ 791.93 million), engineering goods (US$ 472.13 million), electronics goods (US$ 146.98 million), and organic and inorganic chemicals (US$ 130.44 million), etc. in FY24.
- India’s export to Israel stood at US$ 1.1 billion during April-October 2024.
- Major exported items from India to Israel include Gems and Jewelry (US$ 351.56 million); followed by engineering goods (US$ 241.02 million), electronic goods (US$ 97.50 million), organic and inorganic chemicals (US$ 64.68 million), and others (US$ 53.13 million) etc. in April-October 2024.
Major imported items by India from Israel with amount & quantity
- India imported 1,153 commodities from Israel in FY24.
- Imports from Israel to India stood at US$ 2 billion in FY24.
- Imports from Israel to India stood at US$ 883.05 million during April-October 2024.
- Imports from Israel to India stood at US$ 86.76 million during April 2024.
- India's imports from Israel include electrical machinery and equipment and parts (US$ 212.65 million); followed by pearls, precious, or semi-precious stones (US$ 174.42 million), arms and ammunition, and parts (US$ 73.40 million), fertilizers (US$ 63.34 million), etc. in April-October 2024.
Recent Trends & developments
- On December 3, 2024, Israeli Industry Minister Mr. Nir Barkat met India’s Union Minister of State for Science and Technology, Dr. Jitendra Singh. to discuss partnerships in quantum tech, space, AI, semiconductors, and biotechnology. India invited Israeli startups to co-develop innovations under the National Quantum Mission and space initiatives. Both highlighted mutual strengths India’s scale and talent with Israel’s innovation for collaborations in agriculture, health, and strategic technologies, fostering global leadership.
- Under a comprehensive work plan for cooperation in agriculture signed on May 10, 2006, bilateral projects are implemented through MASHAV (Center for International Cooperation of Israel’s Ministry of Foreign Affairs) and CINADCO (Centre for International Agricultural Development Cooperation of Israel’s Ministry of Agriculture and Rural Development). Agricultural cooperation between the two sides is formalized through three-year action plans. The two countries are currently implementing the fifth phase of the joint action plan (2021-23).
- India and Israel have restarted negotiations for the Free Trade Agreement (FTA) with an aim to conclude it in 2022.
- India and Israel celebrated the 30th anniversary of full diplomatic ties in 2022 with flag colors illuminating historic landmarks in both countries. They also launched a commemorative logo featuring the Star of David and the Ashoka Chakra, symbolizing strong friendship and admiration between the two nations.
- As India and Israel prepare for a Free Trade Agreement, Israel wants to leverage synergies between India’s manufacturing potential and Israel’s technological know-how. Mr. Naor Gilon, Israel’s Ambassador to India, on June 29, 2022, expressed Israel’s desire to share technology for the success of India’s flagship program ‘Make in India’. At the same time, he also expresses concerns about the violation of Intellectual property norms.
- On July 14, 2022, India and Israel, along with the United Arab Emirates (UAE), and the United States, convened for the first leaders’ meeting of the I2U2 group, which was established in October 2021. The group has focused on launching initiatives focusing on food security as well as clean energy. I2U2 group will also advance a hybrid renewable energy project in Gujarat state (India), consisting of 300 megawatts of wind and solar capacity.
- India too has been expanding its economic presence in Israel. In July 2022, Adani Ports and Special Economic Zone Ltd (APSEZ), a joint venture between India’s Adani group and Israel’s Gadot Chemicals Tankers and Terminals Ltd, won the bid for Haifa Port at US$ 1.18 billion. Haifa is Israel’s second-largest port and serves as a major trade hub on the country’s Mediterranean coast.
- India and Israel signed a Memorandum of Understanding (MoU) in May 2023, on industrial research and development cooperation, marking a significant milestone in their scientific and technological partnership.
- The Indian Institute of Technology (IIT), Madras joined hands with the government of Israel to establish an ‘India–Israel Center of Water Technology’ (CoWT) in Water Resources Management and Water Technologies at IIT Madras campus.
- India and Israel are planning a slew of initiatives to bolster their cooperation in agriculture, said Mr. Ohad Nakash Kaynar, Deputy Chief of Mission at Israel’s Embassy in New Delhi. The two countries are planning to push high-level agricultural technology cooperation between Israeli institutions and the Indian Council of Agricultural Research (ICAR).
Economic and Defence Relations
- In recent years, bilateral trade between the two countries has diversified into several sectors such as pharmaceuticals, agriculture, IT and telecom, and homeland security. India continues to be a focus country for the Israeli Government’s increased trade efforts. Moreover, the FDI inflows into India reached US$ 326.75 million during April 2000-September 2024.
- Investments in the start-up and tech ecosystems have become quite significant. The total Israeli investments in Indian projects till 2021 have been valued at US$ 270 million, with Teva Pharmaceuticals, Ecoppia, and Naa’n Dan Jain being the top three notable investors in the clean energy, water management, and health domains.
- In addition to trade and business, India is the largest buyer of military equipment from Israel, which, in turn, is the second largest defence supplier to India, after Russia. Ties between Israel and India have grown closer in the last decade and the two countries have formed a significant number of strategic, military and technology partnerships.
- Israel and India in May 2023 inked an agreement that will allow 42,000 Indian workers to work in the Jewish state in the fields of construction and nursing, a move expected to help deal with the rising cost of living and assist thousands of families waiting for nursing care.
- The Foreign Minister of India, Mr. S. Jaishankar and his visiting counterpart, Mr. Eli Cohen reviewed the strategic partnership between the two countries in May 2023 with the focus on enhancing cooperation in defence, security, water, and agriculture.
Conclusion
India and Israel maintain a strategic relationship and a free trade deal between the countries would significantly boost existing collaboration. The elevation of ties in the strategic partnership will expand this emerging cooperation in more new areas.
Contacts
- Embassy of India in Israel
Address: 140, Hayarkon Street, PO Box 3368, Tel Aviv-6345103;
Telephone: 00-972-3-7620700
Mr. Rajiv Bodwade (Deputy Chief of Mission);
Contact: 03-7620700
Email: dcm.telaviv@mea.gov.in - Embassy of Israel in India
Address: Embassy of Israel, 3, Dr. APJ Abdul Kalam Road, New Delhi-110011;
Telephone: +91-11-30414538,+91-11-30414583,+91-11-30414561
Mr. Naor Gilon (Ambassador)
Mr. Ohad Nakash Kaynar (Deputy Chief of Mission)
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