An Israel visit — its strategic, economic, regional impact, Pg6

Key Highlights:

• Prime Minister Narendra Modi will visit Israel from February 25-26, 2026, his second visit after the historic first in July 2017.
• India is Israel’s largest defence customer, accounting for 34% of Israel’s total arms exports between 2020 and 2024.
• India and Israel signed a Bilateral Investment Agreement in September 2025, followed by Terms of Reference for a Free Trade Agreement (FTA) in November 2025.
• The India-Middle East-Europe Economic Corridor (IMEC), announced at the G-20 Summit in September 2023, is of strategic importance to both countries.
• Over 50 countries participated in the Board of Peace Summit on February 19, 2026, pledging $7 billion for the Gaza peace process.

Detailed Insights:

• India and Israel share security concerns due to hostile neighbors and terror attacks, leading to cooperation in defence, including joint development and technology collaboration.
• Israel has provided India with advanced technologies like unmanned aerial vehicles, missiles, and radar systems, with the Barak-8 air and missile defence system being a key success.
• Operation Sindoor in May 2025 highlighted India's need for a strong air and missile defence shield, potentially leading to the procurement of Israel’s ‘Iron Beam’.
• India has benefited from Israel’s innovations in agriculture and water management, with over 35 Centres of Excellence (CoE) focused on high-density production.
• MASHAV, Israel’s agency for international development, has agreements with Haryana and Rajasthan for integrated water resource management and capacity building.
• Bilateral trade between India and Israel reached $3.75 billion in FY2024-2025, expanding beyond diamonds and chemicals to include electronics and medical equipment.
• The FTA with Israel could gain momentum during Modi’s visit, with potential arrangements for Indian infrastructure companies in Israeli projects.
• IMEC offers a secure alternative to the Suez Canal for trade with Europe, but its success depends on lasting peace in Gaza.
• Discussions during the visit will likely include the Gaza peace process, regional dynamics in Iran, and India’s role in the region, balancing ties with the Gulf and Israel.

India-Israel

Key Concepts Involved:

• De-hyphenation: A diplomatic strategy to engage with two countries separately without linking their relationships.
• Free Trade Agreement (FTA): An agreement between two or more countries to reduce or eliminate trade barriers.
• India-Middle East-Europe Economic Corridor (IMEC): A multi-modal transportation project connecting India, the Middle East, and Europe.