How India–Israel bilateral economic relations have evolved over the years
From US$ 200 million in 1992 (comprising primarily diamonds), merchandise trade between India and Israel has diversified and reached a peak of US$ 10.77 billion (excluding defense) in FY 2022-23
India and Israel on Thursday signed multiple agreements and memoranda of understanding (MoUs) across multiple sectors, ranging from artificial intelligence to cybersecurity, education, and others.
The economic and commercial relations between India and Israel have progressed rapidly since 1992.
From US$ 200 million in 1992 (comprising primarily diamonds), merchandise trade has diversified and reached a peak of US$ 10.77 billion (excluding defense) in FY 2022-23, according to a report published on the website of the Embassy of India in Tel Aviv.
In FY 2023-24 and FY 2024-25, the bilateral trade (excluding defense) was US$ 6.53 billion and US$3.75 billion, respectively, witnessing a decline due to the regional security situation and trade route disruption, it added.
India is Israel's seventh-largest trading partner globally, and its second-largest in Asia, with almost 300 Israeli enterprises having made investments in India, as per the India Equity Brand Foundation (IBEF).
Major exports from India to Israel include pearls and precious stones, automotive diesel, chemical and mineral products, machinery and electrical equipment, plastics, textile and apparel products, base metals, transport equipment, and agricultural products.
While pearls and precious stones, chemical and mineral/fertiliser products, machinery and electrical equipment, petroleum oils, and defense, machinery, and transport equipment are major exports from Israel to India.
In FY25, India's exports to Israel totalled US$2.14 billion, with the country shipping about 2,800 items to Israel, as per IBEF.
Not only this, but Indian companies are establishing their footprint in Israel through branch offices and mergers and acquisitions. Some major Indian corporations that operate in Israel or have acquired or invested there include TCS, State Bank of India, Sun Pharma, Infosys, Tech Mahindra, Wipro Infrastructure Engineering, Lohia Group, and Adani Group.
In 2022, a group led by India’s Adani Ports and Special Economic Zone Ltd (APSEZ) acquired the rights to operate the Haifa Port Company Ltd from the Israeli government with an overall investment of US$ 1.18 billion.
