Modi’s Israel visit: Balancing ties amid West Bank tensions, Pg9

Key Highlights:

• Prime Minister Modi visited Israel on Wednesday to discuss bilateral ties and regional developments with Prime Minister Benjamin Netanyahu.
• India recently joined over 100 countries at the UN in criticizing Israel's actions in the West Bank, signing a joint statement after initially abstaining.
• Bilateral trade between India and Israel peaked at over $10.7 billion in 2022-23 but decreased to $3.6 billion in 2024-25 due to war-related disruptions.
• India accounted for over 38% of Israel's arms exports between 2014 and 2024, becoming a major importer of Israeli arms.
• Cumulative Israeli foreign direct investment in India reached over $347 million between 2000 and September 2025, mainly in the technology sector.

Detailed Insights:

• India and Israel established full diplomatic relations in 1992, with the relationship strengthening significantly in defense, trade, technology, and labor mobility over the last decade.
• Since 2014-15, India has maintained a trade surplus with Israel, which sharply increased to $6.1 billion in 2022-23 before decreasing to $663 million in 2024-25.
• Refined products from crude oil constituted approximately 44% of India's exports to Israel between 2019-2025, while diamonds made up about a third of India's imports from Israel.
• Israel's foreign direct investment in India is primarily focused on the technology domain, with over 300 investments made, while Indian companies have invested $443 million in Israeli technology firms.
• As of October 2024, there were around 32,000 Indian workers in Israel, many recruited after the Gaza conflict to replace Palestinian labor in the construction sector, alongside approximately 900 Indian students.

Key Concepts Involved:

• Foreign Direct Investment (FDI): An investment made by a firm or individual in one country into business interests located in another country.
• Bilateral Trade: Trade between two countries.
• Trade Surplus: When a country's exports exceed its imports.