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India is among the largest trade partners

by Blitz India Media
May 27, 2023
in Spotlight, The blitz special
0
India is among the largest trade partners

INDIA and Israel have enjoyed a close diplomatic relationship since 1992, with the two countries forming strong ties in the economic, military, agricultural, and political sectors.

Their relationship, however, actually dates back to 1950 when India extended de-jure recognition to Israel and Israel opened a consulate in Mumbai, which facilitated the voluntary immigration of thousands of Indian Jews to Israel.

Over the years, thousands of Indians have traveled to Israel for training in agricultural technology and community development, while Israel supplied weapons to India during the Kargil war against Pakistan, Israel has also provided humanitarian relief to India, including sending an emergency response delegation in 2001, to provide aid and treatment to victims of a devastating earthquake.

JV of high-tech firms

Since the establishment of diplomatic ties, India has become one of Israel’s largest trading partners, with hightech companies from both countries forging joint ventures and competing successfully in the international marketplace. The focus of trade and cooperation between the two countries now centres primarily on securityrelated deals, agriculture, and water desalination.

The key to the growing India-Israel ties is in the realm of security and defence, with India allocating tens of billions of dollars to modernise its Army. Defence deals with Israel have grown exponentially, and today, India is one of the largest importers of Israel’s defence equipment. Israel has sold radar and surveillance systems, electronic components for military aircraft, and has provided training in counterterrorism methods to help India defend itself.

Merchandise trade

From worth $200 million in 1992, bilateral merchandise trade increased to $7.86 billion (excluding defence) in FY 2021–2022, with the balance of trade in India’s favour. In FY2022-23, as per data available for April to November 2022, the bilateral trade stood at $7.07 billion (excluding defence). India is Israel’s second-largest trade partner in Asia and the ninth-largest globally.

The election of Indian Prime Minister Narendra Modi in 2014 marked a significant milestone in the deepening of cooperation between India and Israel. In a striking show of the strengthening ties, Israel exported $662 million worth of weapons and defence items to India between May and November of that year – more than the total Israeli exports to India in the previous three years combined.

This newfound friendship was solidified when Prime Minister Benjamin Netanyahu and PM Modi met in September 2014 for the first time in over a decade. Netanyahu invited Modi to visit Israel for a return trip, setting the stage for a series of high-level visits between the two nations.

Historic visit by PM

In July 2017, Modi made history by becoming the first sitting Indian Prime Minister to visit Israel. Netanyahu personally accompanied PM Modi throughout his three-day visit, emphasising the critical importance of the trip. Modi bid farewell to the people of Israel in a Twitter post in both Hebrew and English, thanking them for their hospitality and expressing his belief that the successful visit would strengthen the burgeoning India-Israel relationship. Netanyahu reciprocated the gesture by posting a message on Twitter in Hindi.

Netanyahu’s reciprocal visit to India in January 2018 further cemented the growing partnership between the two countries. It was the first visit by an Israeli Prime Minister to India in over 15 years. The deepening India-Israel relationship holds promise for increased economic, military, agricultural, and political cooperation in the future.

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