India-Israel trade ties: India ranks as Israel’s second-largest Asian trading partner in merchandise
- IBEF
- February 24, 2026
India and Israel are also strengthening their economic partnership, with bilateral merchandise trade amounting to Rs. 340 billion (US$ 3.75 billion) in FY25, despite occasional interruptions due to regional tensions. India has also increased its position to become Israel’s second-largest trading partner in Asia, symbolizing the progressive development of bilateral relations since the establishment of diplomatic ties in 1992. The current value of Indian exports to Israel is Rs. 191 billion (US$ 2.1 billion), with imports amounting to Rs. 146 billion (US$ 1.6 billion). Although traditional trade patterns have been dominated by diamonds, petroleum products, and chemicals, the trend is gradually shifting towards diversification in high-tech domains such as electronics, communication equipment, and medical devices, which indicate the beginning of a new era of innovation-driven cooperation.
Investment ties have also strengthened, further solidifying the overall strategic partnership. The total outward direct investment of India in Israel from April 2000 to April 2025 is Rs. 40,294 million (US$ 443 million), which has been boosted by historic investments such as the acquisition of Haifa Port by an Adani-led consortium for Rs. 107 billion (US$ 1.18 billion). The total direct investment of Israel in India during the same period is Rs. 30,403 million (US$ 334.26 million). In 2025, negotiations for a Free Trade Agreement intensified, with both countries seeking to tap into growth opportunities in areas such as agriculture, water technology, artificial intelligence, and industrial research. The newly launched India-Israel Industrial R&D and Innovation Fund (I4F) for 2023-2027 will also help to accelerate joint technological advancements and enhance supply chain resilience in the coming years.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
Partners
