INDIA-ISRAEL RELATIONS: A SPECIAL STRATEGIC PARTNERSHIP

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Context

India and Israel elevated their bilateral relationship to a "Special Strategic Partnership for Peace, Innovation & Prosperity" during the Indian PM's February 2026 state visit to Israel.

What are the key Outcomes of the Indian PM Visit to Israel?

Strategic & Technology Cooperation

• Critical and Emerging Technologies (CET): A new initiative led by the National Security Advisors of both countries to collaborate on semiconductors, quantum computing, and other niche technologies.
• AI & Cybersecurity: Agreements were signed to cooperate on Artificial Intelligence in education and to establish an Indo-Israel Cyber Centre of Excellence in India.
• Strategic Foresight Mechanism: A unique mechanism to identify and analyze emerging global trends using AI and data analytics.

Economic & Labour Mobility

• Financial Connectivity: An agreement to link India’s Unified Payments Interface (UPI) with Israel's fast payment system (MASAV) to streamline cross-border payments.
• Trade Negotiations: The formal launch of negotiations for a comprehensive Free Trade Area (FTA) agreement.
• Labour Agreement: Agreement to facilitate the employment of 50,000 Indian workers in Israel's construction and caregiving sectors over the next five years.

Agriculture & Water Management

• Establishment of the India-Israel Innovation Centre for Agriculture (IINCA) to build on the success of the existing Centres of Excellence (CoEs).

Counter-Terrorism

Both nations issued a strong joint condemnation of recent terror attacks, including the October 2023 attacks in Israel and the Pahalgam attack in India (2025).

How Does This Visit Reflect India’s "De-Hyphenation" Policy?

India's foreign policy has traditionally practiced "de-hyphenation"—engaging with Israel and Palestine as separate, independent relationships. This visit highlights a nuanced evolution of this policy:

• Pragmatism Over Ideology: The India-Israel relationship is driven by strategic interests in defence, technology, and agriculture, reflecting a realist foreign policy.
• Balancing Act on Palestine: India supported a "just and durable peace" (Two-State Solution) but avoided specific condemnation of the Gaza humanitarian crisis, balancing this position to protect strategic ties with Israel.
• Geopolitical Signalling: India's high-profile visit to Israel amid regional instability highlighted the strength and independence of their bilateral relationship, resisting external influence.

What is the "Arab Factor" in India-Israel Relation?

The "Arab Factor" refers to the historical influence of Arab nations on India's foreign policy, which for decades delayed formal diplomatic ties with Israel in favour of a pro-Arab and pro-Palestinian stance.

India recognized Israel in 1950 but avoided full diplomatic relations until 1992. This "Arab Factor" was driven by:

• Energy Security: Dependence on Arab states for oil imports.
• Kashmir Issue: A need to garner Arab support (or prevent their support for Pakistan) regarding the Kashmir dispute.
• Domestic Sensitivities: Concerns about the sentiments of India's large Muslim population.
• Diaspora: Protecting the interests of millions of Indian expatriates working in the Gulf.

Evolution to De-hyphenation: Since 1992, and especially under the Modi government, India has adopted a "De-hyphenation Policy," treating relationships with Israel and the Arab world (and Palestine) as independent and based on separate merits. 

While strengthening ties with Israel, India cannot afford to alienate the Arab world, particularly the Gulf Cooperation Council (GCC), due to asymmetric stakes in energy, trade, and diaspora.

While the Arab world remains indispensable for resource and human capital security, Israel is a critical partner for technological and military modernization. 

What are the Risks and Challenges of the New Agreements?

Safety of Indian Workers: Sending 50,000 workers to a conflict zone is a serious security risk. The Standing Committee on External Affairs (2023) has called for robust evacuation and insurance protocols.

Regional Polarization: India's partnership with Israel risks complicating ties with Iran (Chabahar Port) and undermining its soft power in the pro-Palestine Arab world.

Stalled Multilateral Projects: The conflict jeopardizes vital initiatives like the India-Middle East-Europe Economic Corridor (IMEC), a key project to counter China's BRI, which requires regional stability.

Way Forward

India's "Strategic Multialignment" foreign policy seeks global engagement while avoiding aligning with specific power blocs. A key challenge for this policy is managing the potential conflict between its partnership with Israel and its relationships with the Arab world.

India's "Vishwamitra" (friend of the world) strategy should focus on regional prosperity and peace, emphasizing key initiatives like advocating for Palestinian aid and a Two-State Solution, strengthening economic connections through forums like I2U2, and safeguarding the Indian diaspora's interests.

Source: THEHINDU