Since establishing diplomatic relations in 1992, Israel and India have developed deep ties in various fields, with security cooperation at the forefront. However, for most of the years, these security relations remained covert due to India’s concern over potential reactions from Arab states and the Islamic world. A significant shift occurred only with the rise of Narendra Modi to power and his appointment as Prime Minister in 2014, making the relationship open and public.

Prime Minister Modi promoted a new foreign policy approach, positioning India as a global power capable of maintaining multi-directional relations without fear of harming its interests. For him, the Israeli-Palestinian conflict is not an obstacle to further developing ties with Israel, with whom India shares common security interests, particularly in countering terrorism threats. India faces challenges from Islamic organizations operating from Kashmir and Pakistan, while Israel contends with a variety of threats in the Middle East. Moreover, India is the world’s largest arms importer and has purchased security equipment from Israel worth $2.9 billion over the past decade, including radar systems, drones, and electronic warfare systems.

Although India officially recognized Israel as early as 1950, it took 42 years to establish full diplomatic relations as a “wind of change” began influencing global dynamics. For many years, India was cautious about publicly demonstrating closeness to Israel due to its commitment to the Palestinians and its affiliation with the Non-Aligned Movement (NAM). The shift began in the late 1990s, but the real breakthrough, as mentioned, only occurred with Modi’s rise to power and his policy of separating India-Israel relations from the Israeli-Palestinian conflict. Traditionally, India maintained its commitment to the Palestinians, but from Modi’s pragmatic perspective, such an approach was no longer necessary given the importance India places on its relations with Israel.

“India’s ability to translate financial allocations into effective military power depends on overcoming bureaucratic barriers. Understanding these trends for Israel can help develop a security policy that strengthens and deepens cooperation between the two countries”

An Open Partnership, Without Fear

While Modi is perceived as having brought about a significant shift in relations with Israel, it is essential to understand that security ties had already begun improving in the early 2000s. However, until his rise to power, cooperation between the two countries remained largely covert. Modi did not initiate a new policy but instead chose to bring the relationship into the public sphere, reflecting India’s evolving foreign policy, which views itself as a global power capable of engaging with multiple actors without fear of negative repercussions.

Many of the defense deals between India and Israel completed during Modi’s tenure had already been signed under his predecessors. Still, he was the one who made them public and reinforced the political dimension of the partnership. Moreover, India has not changed its traditional voting patterns in international institutions. It continues to support pro-Palestinian resolutions, illustrating that its ties with Israel are driven by pragmatic considerations rather than a new ideological shift.

Rather than viewing Modi as the sole driver of change, one can argue that he acted as a skilled political entrepreneur who leveraged existing geopolitical shifts to India’s advantage. Several factors contributed to his ability to deepen regional engagement, including the weakening ties between Pakistan, Saudi Arabia, and the UAE, the Iran nuclear deal (JCPOA) signing in 2015, and the changing perception of India in the Middle East as a rising power. Unlike the traditional stance of the BJP party, which did not regard Arab states as crucial strategic partners, Modi fostered pragmatic relations with Gulf nations driven by economic and security considerations. Thus, India’s partnerships with Saudi Arabia and the UAE, which were previously loose, have become strategic, marked by significant infrastructure investments in India and a reduction in criticism of its policies in Kashmir.

One of the challenges in India-Israel relations concerns India’s ties with Iran. India has a historical tradition of cultural solidarity with Persian heritage and a longstanding dependence on Iranian oil imports. For India, which faces threats from radical Islam both domestically and externally, the Shiite danger is perceived as secondary. As a result, there seems to be a limited understanding in India of Israel’s perception of the Iranian threat. Although India ceased importing oil from Iran in 2019 due to U.S. sanctions, it continues to promote strategic projects with Tehran, such as developing the Chabahar port. At the same time, India is strengthening its relations with Gulf states, particularly Saudi Arabia and the UAE, which have become central trade partners.

Launch of a Barak-8 missile from an Indian ship, ‘a joint project between India’s DRDO and Israeli defense industries’
photo: Indian Navy

Upgrading Military Readiness

Recently, India’s defense budget for 2025 was published, revealing the government’s direction and priorities. Accordingly, Israel should understand the implications and formulate a security policy that facilitates continuing and deepening its relationship with India. India’s defense budget for 2025–2026 stands at approximately 7 trillion rupees (about $87 billion), a 9% increase compared to the previous year. This sum constitutes 1.91% of the national budget and emphasizes innovation, strengthening the local defense industry, and enhancing India’s self-reliance. Of this budget, $48.6 billion will be allocated to maintaining the Indian Air Force as part of efforts to upgrade its aerial fleet.
Additionally, $14.9 billion will be directed toward developing advanced technologies, including hypersonic weapons, military lasers, electronic warfare, and military robotics. The Defense Research and Development Organization (DRDO) budget has been increased to $3.1 billion, aiming to enhance India’s independent development capabilities and reduce reliance on imports. Under the “Make in India” policy, approximately $21 billion will be allocated for the procurement of advanced weapon systems manufactured by Indian industry.

Strategically, the budget reflects several significant trends. First, the extensive procurement of aircraft and advanced weapon systems underscores India’s commitment to improving its military readiness in light of security challenges from China and Pakistan. Second, the investment in defense innovation highlights India’s desire to upgrade its technological capabilities, focusing on areas such as cyber warfare, military robotics, and advanced lasers. Third, strengthening northern borders and enhancing naval presence in the Indo-Pacific reflect India’s efforts to counter China’s growing influence in the region while reducing dependence on foreign arms imports.

The current defense budget signals a long-term strategy to bolster national defense while focusing on self-development and technological innovation. However, India’s ability to translate these allocations into adequate military power depends on overcoming bureaucratic barriers and accelerating the implementation of defense projects. Understanding these directions can help Israel develop a security policy that strengthens and deepens cooperation between the two countries.

Under Modi’s leadership, India maintains a balanced foreign policy to maximize its interests. While Israel is an important security partner, India does not view it as an exclusive ally but rather as part of a broader strategic framework. India’s multi-directional approach enables it to maintain flexibility in relations with the West, China, and the Islamic world while continuing to develop its local defense industry.

One of the most prominent collaborations between the two nations is the Barak-8 missile project, a joint initiative between India’s DRDO and Israeli defense industries. Additionally, India employs Israeli technologies in Kashmir, including Heron UAVs and Tavor rifles. As part of its drive for defense independence, India continues to promote local military production while integrating Israeli technologies into domestic manufacturing. Future cooperation will focus on advanced technologies, including artificial intelligence, cybersecurity, and missile defense. However, key challenges include India’s balancing act between Israel and other partners, such as Iran and Russia, and its need to maintain strategic independence.

Map of the IMEC: ‘Israel’s involvement in the initiative could be a sensitive issue for Arab states and may impact its future implementation’
graphics: Robyvd

The Economic Corridor: India – Middle East – Europe

In September 2023, during the G20 Summit, the IMEC (India-Middle East-Europe Economic Corridor) initiative was launched with the participation of seven countries—India, Saudi Arabia, the UAE, France, Germany, Italy, and the United States—as well as the European Union. This initiative expands India’s access to Middle Eastern markets and opens up significant transportation, infrastructure, and energy business opportunities. India’s participation in the project is expected to strengthen its regional standing and enhance its strategic partnership with Israel.

Historically, India operated in the Middle East through bilateral engagements, but in recent years, it has expanded its activities through regional cooperation frameworks. Its involvement in I2U2 (India-Israel-UAE-USA) and IMEC reinforces its role as a key player in regional cooperation, particularly in energy, water, healthcare, and food security. Moreover, IMEC drives enhanced cooperation between India and Israel, especially in the transportation, logistics, and supply chain management sectors. Developments in initiatives like the “India-Israel Global Innovation Challenge” highlight the potential for deepening collaboration between both countries’ innovation and high-tech ecosystems.

Despite the economic and strategic benefits of IMEC, there are also geopolitical challenges. Hamas’ attack on Israel on October 7, 2023, and its aftermath have created significant difficulties for regional cooperation. Despite political pressures, India and other IMEC participants, including Saudi Arabia and the UAE, remain committed to the project. However, Israel’s involvement in this initiative could become a sensitive issue for Arab states and may impact its future implementation.

Thus, security relations between India and Israel constitute a significant part of their strategic partnership but are maintained within a balanced framework due to the complexity of Indian foreign policy. Israel is a key technology provider for Modi’s military, although India seeks to maintain defense autonomy and avoid dependency on imports. However, regional and global challenges, such as China’s influence and tensions in the Middle East, will continue to shape the scope of cooperation between the two countries.

From a strategic perspective, India’s new defense budget reflects several key trends. First, the extensive procurement of aircraft and advanced weaponry underscores its commitment to enhancing military preparedness in response to security threats from China and Pakistan. Second, investments in defense innovation indicate India’s ambition to upgrade its technological capabilities, focusing on cyber warfare, military robotics, and advanced lasers. Third, the reinforcement of northern borders and an increased naval presence in the Indo-Pacific highlight India’s efforts to counter China’s expanding influence while reducing reliance on foreign arms imports.

It is crucial to emphasize that security relations do not exist in a vacuum but are intertwined with broader geopolitical considerations. India carefully balances its ties with Israel alongside its partnerships with other countries, including Iran and Russia, to maintain strategic autonomy and avoid aligning itself unambiguously with any single power. Furthermore, India is deepening its ties with Gulf states, which have become significant trade partners, necessitating a cautious foreign policy approach regarding Israel. IMEC and new multilateral frameworks such as I2U2 position India more centrally in the Middle East while expanding its economic relations with Gulf nations and Israel. This corridor is an economic initiative and a crucial element in India’s strategic framework, enabling it to strengthen its standing as a global player.

The continued implementation of IMEC will enhance India and Israel’s ability to develop and strengthen collaborations in the technological, security, and energy sectors while positioning Israel as a key transportation hub in the Eastern Mediterranean. This initiative could serve as a foundation for further regional partnerships and deepen the strategic ties between the two nations, even as geopolitical challenges in the Middle East and Indo-Pacific continue to evolve.

Netanyahu and Modi on the beach in Israel in 2017: ‘For Modi, the Israeli-Palestinian conflict does not pose an obstacle to the continued development of ties with Israel’
photo: India's Prime Minister's Office