INDIA - ISRAEL

Introduction:
The 2017 Indian Prime Minister visit to Israel was significant and historic as for the first time any Indian
PM visited to Israel in 25 years since we established full diplomatic ties. The visit signifies that 25th
anniversary of diplomatic ties has opened a new chapter in the Indo-Israel bonhomie. Later reciprocal
visit by Israeli PM in January 2018 further strengthened this mutual camaraderie. At the crucial junction
of watershed moment the relations between the two nations demands a deeper analysis.
Historical Background:
India-Israel relations are an epitome of realism in international relations wherein the expediency of
national interest became the guiding force behind a nation s foreign policy. Both countries gained their
independence from the UK within months of each other, but they headed in different directions for
nearly four decades - India as a leader in the NAM maintained close relations to the Arab world and the
Soviet Union; Israel established close ties with the US and Western Europe.
India foreign policy, during cold war era, was based on moral as well as idealistic foundations and
hence India could not appreciate the strategic potential of robust relationship with Israel as it was
unable to move beyond the narrow confines of ideological solidarity with the Palestinian cause. The two
famous foreign policy decisions of India in relation to Israel at the time of Independence include India’s
participation in the UN Special Committee on Palestine and its decision on Israel recognition as a State.
In the UN Committee while the majority countries recommended the partition of Palestine into Arab and
Jewish States and favoured the international recognition for Israel, India opposed the partition of
Palestine and recommended the federal state solution. India even refused the Israel’s membership of
the United Nation and voted against Israel’s recognition as an independent country.
However, after the disintegration of the Soviet Union, ushering of LPG era and under the able
leadership of its realist Prime Minister Late P.V. Narasimha Rao India swiftly moved to cultivate more
robust ties with Israel when full diplomatic relations were established in 1992 (though India had formally
recognised Israel in September 1950 itself). With the decline of the Soviet Union, Israel also emerged
as a reliable supplier of defence armaments to India.

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Since India established full diplomatic ties with Israel in 1992, relations between the two countries have
grown at an astonishing pace, covering a wide range of issues from defence and homeland security, to
agriculture and water management, and now education and even outer space. This is further
strengthened by the fact that both countries residing in complex geographies have the shared pain of
being wounded by cross-border terrorism.
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The two countries recently completed 25 years of diplomatic ties. The future image of robust bilateral
engagement is of a powerful hi-tech partnership befitting stature of two leading knowledge economies.

India-Israel Relations
There are a number of avenues in which India-Israel ties would be key to the emerging global order.
Few important ones are:
1) Political Relations:
 India formally recognised Israel on September 17, 1950. Soon thereafter, the Jewish Agency
established an immigration office in Bombay. This was later converted into a Trade Office and
subsequently into a Consulate. Embassies were opened in 1992 when full diplomatic
relations were established.
 Political ties between the two countries are friendly. Prime Minister Modi undertook an
historic first ever visit by an Indian PM to Israel from 4-6 July 2017, during which the
relationship was upgraded to a strategic level and seven Agreements/MoUs were signed
in the fields of R&D innovation, water, agriculture and space.
 Prime Minister of Israel, Mr. Benjamin Netanyahu, made a visit to India from 14-19 January
2018 during which four G2G agreements on cyber security, oil & gas cooperation, film co-
production and air transport were signed, along with five other semi-government agreements.
 Before these visits, Hon’ble President Pranab Mukherjee paid a state visit to Israel in October,
2015, while the Israeli President Reuven Rivlin visited India in November 2016. Increased high-
level exchanges and ministerial visits on both sides have expanded cooperation in different
functional areas such as trade, agriculture, S&T,culture and security.
 In 2017 Mr. Narendra Modi became the first Indian Prime Minister to visit Israel. What was
more important was that it was not marked by a conventional balancing act of visiting Palestine
also.
 The 2017 visit with the formal acknowledgement of the relationship at the highest levels
leaving behind hesitations of history and India’s de-hyphenation of its Israel and
Palestine policies for the first time (and taking the related course-correction measures such
as rethinking India’s voting choices on anti-Israel resolutions at the UN and dropping the
demand for East Jerusalem as capital of a future Palestinian state), is the turning point in the
relations of both countries going forward.
2) Economic Relations:
 From US$ 200 million in 1992 (comprising primarily trade in diamonds), bilateral
merchandise trade stood at US$ 5.02 billion (excluding defence) in 2016- 2017. While
exports from India was US$ 3.06 billion, the import to India from Israel was US$ 1.96 Billion.
 Major exports from India to Israel include precious stones and metals, chemical products,
textiles and textile articles, plants and vegetable products, and mineral products. The diamonds
constitutes about 53% of bilateral trade between both countries.
 Major imports by India from Israel include precious stones and metals, chemicals (mainly
potash) and mineral products, base metals and machinery and transport equipment.
 India is Israel's third largest trade partner in Asia after China and Hong Kong.
 In recent times trade has diversified into several sectors such as agriculture, pharmaceuticals,
IT and telecom and homeland security.

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  Almost seventy five percent of bilateral trade in services flow from India to Israel. Apart
from direct investments, foreign direct investment (FDI) from Israel to India also flows through
USA, Europe and Singapore.
 Companies from Israel have made substantial investments in India in fields as diversified
as renewable energy, telecom, energy, real estate, water technologies etc. An affirmation of
India s investment in Israel came with 100% acquisition of Israeli drip-irrigation company
Naandan by Jain Irrigation. During the last decade, Indian IT majors such as Infosys, Wipro
and Tech Mahindra have also made significant investments in Israel. Reliable figures are
not available as a large portion of these investments are routed through third countries like
Singapore, USA etc.
 During PM Modi’s visit in July 2017, the first meeting of the newly established India-Israel
CEOs Forum took place, while its second meeting took place during PM Netanyahu’s visit to
India in January 2018.
 FTA Talks: Israel is very much keen on the relaunch of the negotiations on the proposed Free
Trade Agreement (FTA) with India to boost ties. The FTA talks had begun a decade ago and
missed the 2014 deadline.
 Israel, led by strong growth of private consumption, low inflation, rising labor force participation,
a positive investors’ climate because of low interest rates, natural gas finds and responsible
fiscal policies, has a lot to offer.
3) Agriculture relations:
 Agriculture being a top priority for the two countries is being attested by the fact that India and
Israel have a robust bilateral agreement for cooperation in agriculture called India-Israel
Agriculture Project.
 Different Centres of Excellence in the agriculture sector have been established in states
such as Haryana, Maharashtra, Rajasthan, Gujarat etc. India has a lot to learn from dryland
agriculture of Israel.
 Also Bilateral action plan (2015-18) aims to expand cooperation into new sectors such as
dairy and water.
 Water management: Israel has done extremely good in the field of water management and
conservation. It has emerged as a world leader in this field and is now providing tips and
technologies to other countries for judicious use of water. Recently, the union cabinet has
approved a memorandum of understanding (MoU) with Israel on the National Campaign for
Water Conservation in India.
 Israeli drip irrigation technologies and products are now widely used in India. The Economic
Survey 2016-17 batted for Indo-Israel cooperation in drip-irrigation technologies.
 India has a lot to learn from Israeli expertise and technologies in horticulture
mechanization, protected cultivation, orchard and canopy management, nursery management,
micro-irrigation and post-harvest management.
 Israel has also offered to help the Indian government with a project to clean the Ganga.
 There has been a Declaration of Intent for further cooperation in agriculture during the recent
reciprocal visits of Prime Ministers of respective nations. The bilateral cooperation will benefit
both the countries in strengthening the techniques in efficient use of water, micro-irrigation,
recycling/re-use of waste water, desalination, aquifer recharge and in-situ water conservation
techniques.

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4) Defence and Security ties:
 Defence continues to be a “central pillar” of the bilateral relationship. Today, Israel is the
third largest supplier of arms to India after Russia and the U.S. India is already buying an
average of $1 billion per year in military equipment.
 The earliest India-Israel defence collaboration took place during the 1962 Sino-Indian war when
Israel provided military aid to India. Israel also helped India during its two wars with Pakistan in
1965 and 1971.
 India reciprocated by helping Israel during the six-day war in 1967 by supplying spare parts for
French-made Mystere and Ouragan aircraft as well as AX-13 tanks.
 India imports critical defence technologies from Israel. India has purchased Barak I missiles, 3
Phalcon AWACS, and Israeli spike anti tank missiles from Israel. Israel is developing Barak 8
missile for Indian Navy and IAF and plans to purchase 2 more Phalcon AWACS are in
progress.
 Under the Modi government, India and Israel have ramped up their cooperation on security
and defence matters. In February 2014, India and Israel signed three important agreements.
These are as follows- Mutual Legal Assistance in Criminal Matters, Cooperation in Homeland
and Public Security, and Protection of Classified Material.
 In April 2017, India signed a $2 billion deal with an Israeli firm for advanced medium-
range, surface-to-air missiles (MRSAMs), the largest such deal for the Israeli industry.
This will provide the Indian army the capability to shoot down aircraft, missiles and drones at
ranges of up to 70 km.
 India has already deployed Israeli unmanned aerial vehicles (UAVs) along the rugged
mountains of Kashmir for surveillance, as well as on the disputed border with China.
 There are regular bilateral visits between the armed forces and defense personnel of the two
countries. India and Israel have robust cooperation in the realm of homeland security and
counter-terrorism inclusive of cooperation in intelligence sharing. IPS officer trainees visits
Israel in for foreign exposure visit.
 In nutshell, the India-Israel equation in defense has acquired strategic dimensions but there is
need and opportunity to make it “more broad-based” through production and manufacturing
partnerships. Israeli defense industries are well inclined towards joint ventures to give a boost
to the ‘Make in India’ campaign.
5) Counter-Terrorism:
 In January 2012, India and Israel stepped up their counter-terrorism coordination strategy. The
two countries also signed an Extradition Treaty and a pact on Transfer of Sentenced Prisoners.
Both countries signed an intelligence-sharing agreement in July 2014, hoping to fight radical
Islamic extremism in the region together. Joint working Group on counter-terrorism meets
periodically.
 India eyes advanced Israeli foliage penetrating radar capable of detecting human and vehicular
activity in dense forests. In the Indian use case, the radar would be a handy monitoring tool for
the porous Line of Control with Pakistan, the de facto boundary in the disputed territory of
Kashmir. Israeli radars could considerably improve intelligence, surveillance and
reconnaissance of the difficult terrain.
 This would help India plug leakages in LOC to prevent infiltration and incidents like Pathankot
and Uri attack. There is thus immense scope for collaboration on border security sphere.

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6) Science & Technology:
 India-Israel cooperation in S&T has evolved on two tracks. There is joint research by S&T
institutions under an S&T Cooperation Agreement signed in 1993.
 Space Collaboration: In 2002, India and Israel signed a cooperative agreement promoting
space collaboration. India has successfully launched TecSAR and RISAT-2 radar imaging
satellites of Israel from PSLV of ISRO.
 In January 2014, India and Israel held extensive discussions to establish an India-Israel
Cooperation Fund aimed at promoting innovations through joint scientific and technological
collaborations.
 During the visit of PM Modi in July 2017, an MoU for establishing India-Israel Industrial R&D
and Innovation Fund (I4F) was signed. This MoU, with a contribution of $ 20 m from each side
over 5 years, is expected to play an important role in enabling Indian and Israeli enterprises to
undertake joint R&D projects.
7) Culture and Education:
 India is known in Israel as an ancient nation with strong cultural traditions, and in popular Israeli
perception, India is an attractive, alternative tourist destination. Israeli youth are particularly
attracted to India.
 India is a destination of choice for over 50,000 Israelis who visit India every year for tourism and
business. Almost 55,000 Indians visited Israel in 2017, the second largest number of tourists
from an Asian country. They are mostly pilgrims who visit the holy sites. Both the Embassies
organize several cultural events each year.
 The International Yoga Day on 21 June 2018 was attended by almost two thousand people in
Tel Aviv.
 Different Israeli universities like Tel Aviv University, Hebrew University in Jerusalem and Haifa
University teach courses related to India.
 Indian institutes like IITs and JNU, New Delhi have hosted reputed Israeli academicians under
GIAN scheme.
 In May 2013, India and Israel launched a new funding programme of joint academic
research, the first round of which will focus on both exact sciences and humanities. Each
government will contribute USD 12.5 million each over four years.
 Since 2012, Israel has been offering post-doctoral scholarships to students from India and
China in all fields over a period of three years with triennial grants of NIS 100,000.
8) People to People Contact:
 There are approximately 85,000 Jews of Indian-origin in Israel (with at least one Indian
parent), who are all Israeli passport holders. The main waves of immigration into Israel from
India took place in the fifties and sixties. The majority is from Maharashtra (Bene Israelis) and
relatively smaller numbers from Kerala (Cochini Jews) and Kolkata (Baghdadi Jews). In recent
years some Indian Jews from North Eastern states of India (Bnei Menashe) have been
immigrating to Israel. While the older generation still maintains an Indian lifestyle and their
cultural links with India, the younger generation is increasingly assimilated into Israeli society.
 Besides, there are about 10,000 Indian citizens of whom about 8000 are care givers while
others are diamond graders, IT professionals, students and unskilled workers.
 India is a popular tourist destination of Israelis. Every year, over 50,000 Israelis visit India for
tourism and business.

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  Both governments also encourage collaboration among Universities and Educational institutions
involving faculty and student exchange programmes, joint academic research, fellowships,
Industrial R & D in IT and electronics, promoting innovation etc.
 During his visit to Israel, PM Modi while addressing Indian-Israelis recalled several Jewish
Indians who had served in India, including General JFR Jacob, and hundreds of Indians who
worked to “make the desert bloom” in Israel in farming jobs. He also referred to Baba
Fariduddin, who had travelled to Jerusalem in the 13th century, calling him a symbol of the fact
that while India and Israel have had full diplomatic ties for 25 years, they go back “hundreds of
years” in history.
 India announced easing of the rules for applying for Overseas Citizen of India cards for Israeli
citizens of Indian origin. PM Modi also met Moshe Holtzberg, the boy who lost his parents in the
2008 Mumbai terror attacks to symbolise the common threat to both nations.
Differences and Irritants in India-Israel relationship:
1. Historical differences: India’s consistent support for a sovereign, independent, viable and
united Palestinian state with East Jerusalem as its capital, living within secure and recognized
borders, side by side and at peace with Israel and Pro-Arab stance has been a concerning
point.
2. Irritants in defence ties:
 Prolonged delay in delivering weapon systems as well as few unsettled cost issues. For ex
in AWACS deal.
 Israel’s reticence in transfer of technology as encountered in Barak 8 missiles .
 The growing Israeli-China Defence ties are a cause of worry for India. For example
inauguration of a top Israeli defence company's factory in China.
3. Iran issue: Where on one hand Israel considers Iran an existential threat, India, on the other,
has a historical relationship, and finds the cooperation useful for energy supplies, and an
alternative route through Chabahar port to Afghanistan and Central Asia.
4. India, Israel and the Arab world triangle: While Israel has inherent differences with Arab
countries, India has significant stakes there and India’s recent vote at the UN against America’s
move on Jerusalem was a reflection of that underlying reality.
5. China factor: China is Israel’s largest trading partner in Asia, there are strong technology and
investment linkages.
6. Pakistan relations: Israel’s interest lies in keeping open the possibility of relations, while there
are serious tensions among India and Pakistan.
7. Limited People to People ties and cultural differences: Israelis and Indian approach
business differently and often find it difficult to get on the same page. Though formal ties were
established in 1992, but the ideological divide resurfaces time and again.
8. Issue of technology transfer: There exist differences between India and Israel over issues
related to technology transfer, end-user agreements and a proposed free trade agreement,
more so given India’s policy of ‘Make in India’.
9. Bilateral Trade and investment still below potential: From just $200 million in 1992, bilateral
trade (excluding defense) peaked at about $5 billion in 2012 but since then it has dropped to
about $4 billion. Also, bilateral trade has not diversified much—diamonds and chemicals still
make up for the large chunk of the pie.
10. Halted FTA: The free trade agreement (FTA) is stuck because of the concerns from the Indian
domestic industry.
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 11. Connectivity between two countries still poor with just one direct flight from Mumbai 3 times
a week and no direct flights from Delhi.
12. India abstained on a UNHRC resolution in 2015, and criticized Israel for aerial Bombing
on Gaza.
Potential and prospects for deeper engagement between India and Israel:
1. A reliable partner for defence and strategic ties:
 Previous two decades have witnessed a steady strengthening of the India–Israel
Relationship, especially in the defence and security areas where the two countries’ shared
concerns about Islamic extremism, have offered common ground for cooperation.
 Defence and homeland security have also been among the critical pillars of the
relationship. The regular exchanges of senior leadership in this field, the purchase of critical
equipment and co-development of technology are a reflection of high-level mutual
confidence. Israel is seen as a reliable partner.
 Israel’s flexible export policy meets Indian demands for technological transfer that have
recently been an important part of governments overall developmental agenda.
 With Russian economy and its defence industry in shambles and US and Europe’s
skepticism to supply India with defence weapons (given India’s refusal to sign NPT),
Israel has gained importance since both are nuclear powers who have not signed the NPT.
2. Counter Terrorism and Intelligence Sharing: India and Israel are boosting up the counter-
terrorism cooperation and sharing real-time intelligence on issues crucial to national security.
Israel has the technology to decrypt encrypted instant messaging apps based
communication which can be helpful in combating terrorism of modern days.
3. Israeli Culture of Innovation and Entrepreneurship:
 Israel embodies a culture of entrepreneurship highlighted by power of innovation, global
leadership in R&D spending and venture capital investment.
 Israeli companies, with their acknowledged strengths in technology and products,
would clearly benefit from Indian partnership as they sought to scale up for markets
or production.
 Given Israel’s strengths in innovation and its having, despite its small population base, the
second largest number of start ups in the world (after US), Indian companies have also
taken stake in such ventures and in R&D. A joint innovation and research and development
fund can work wonders. A country that has no automotive industry for example, and yet they
are the R&D centre for autonomous cars (self-driving) in the world.
 The two governments have worked to finance and promote scientific collaborations, and
Indian companies are now beginning to partner with Israeli universities and scientific
institutes for development and commercialization of technologies.
4. Technological prowess in Water Conservation and Agricultural Partnership:
 Israel’s technological prowess remains unmatched in areas as diverse as waste
management and reprocessing, desalination, agriculture, waste water recycling, health,
biotechnology, and nanotechnology.
 Arid land technology, biotechnology and a joint action plan to research India specific and
export-oriented seeds deserve attention. Israel has tackled its rain deficiency by developing
technology solutions for waste water management, purification, desalination techniques and
water reuse in agriculture and industry.

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  The Israeli dairy industry with its proven know-how and design, technology and genetic
material can revolutionize the dairy industry in India.
5. Tourism potential: Tourism is also a growing aspect of bilateral relationship. Every year 30-35
thousand Israelis visit India for tourism business and other purposes and about 40,000 Indians
visit Israel every year mostly for pilgrimage.
6. Boost to Make In India: A modern economy like Israel goes well with our own flagship
programmes like Make in India. Indian companies with their engineering and scale and Israeli
companies with their innovation and technology can together stimulate our domestic
manufacturing sector, particularly in defense.
7. Medical and Pharmaceuticals: Medical technologies and devices could be the next growth
areas for collaboration.
8. Diaspora: Another important factor in bilateral ties will be the Indian diaspora. Most Jewish
Indians, about 80,000, have all moved here, and there are just about 4,000-5,000 left in India.
9. Academia-Industry- government Connect: We have to learn from their universities, how they
have technology transfer companies based right on their campuses, who help convert theory
into useful products in a very short period of time.
10. Improving ties with USA: India could also benefit from Israel’s close relationship with US.
11. Conducive Public opinion: Public opinion polls project high regard in each nation for the other,
with India often seen as the world’s most pro-Israeli country after the United States.
12. Energy Security: Recent findings of huge oil and gas deposits in the Mediterranean Sea can
make Israel a potential exporter and India being a major importer can get the benefits out of it.
Way forward:
 Indeed, there are the low-hanging fruits (such as Investments to boost tourism, education and
cultural ties and building bridges with the Indian diaspora) in Israel in the bilateral relationship
that can be plucked right away.
 Taking cues of Israel’s industry-academia ecosystem, its innovation and start up culture and the
state of art cutting edge technology across sectors; India can build mutual collaborations for
present and future development.
 Despite having India voted against Israel at the United Nations, (Dec 2017) (on the issue of
making Jerusalem as new capital of Israel), the Indian Government is focussing to set a
precedent in its policy towards the Israel-Palestine issue as Israel’s contribution to India’s civil
and defence requirement is immense and a shift in stance in future may be seen.
 Further though the breadth and depth of India-Israel ties is no match as of now for the Sino-
Israeli one, which is largely driven by trade and commerce, New Delhi should be aware that
Chinese influence will only grow in the coming years. Prioritizing economic and trade ties in
India-Israel ties should be viewed as a priority.
 India s closer ties with Israel are very much in its national interest. Critics allege that India is
now abandoning the Palestinian cause. However, India is just balancing and recalibrating its
West Asia policy on the premise of its own national interest. The present Modi government has
openly publicized its closer ties with Israel but has applied diplomatic dexterity in its West Asia
policy by having closer ties with the UAE, Iran as well as Saudi Arabia.
 Indo-Israeli bilateral ties will increasingly be shaped by the rapidly evolving geopolitical realities
in Asia and the Middle East. Israel will have to figure out its own response to this Asian flux.

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Conclusion:
For the past 25 years, India has generally conducted its Israel policy with careful attention to the
sensitivities of Palestinians. But now, India has delinked India’s relationship with Israel from the
question of Palestinian self-determination. India’s evolving ties with Israel are based on pragmatism
and the desire to avoid hypocrisy.
Tapping each other’s potential should be the imperative in the new “Strategic Partnership” to truly make
“India-Israel is a match made in heaven”.
Some recent developments in India-Israel relations and their brief analysis:
PM Modi July 2017 visit to Israel:
 Ever since Narendra Modi assumed office in May 2014, the relations between the two countries
are at its peak. In fact, Israeli Ambassador to India, David Carmon, in an interview confirmed that
“though India-Israel ties had evolved over the last 25 years, it has become more visible
under the Modi government.”
 Marking the 25th anniversary of the establishment of diplomatic relations between the two
countries, Prime Minister Narendra Modi of India visited Israel from 4-6 July 2017 at the invitation
of Prime Minister Benjamin Netanyahu of Israel. This historic first-ever visit by an Indian
Prime Minister to Israel solidified the enduring friendship between their peoples and raised the
bilateral relationship to that of a strategic partnership.
 Israeli Prime Minister Benjamin Netanyahu in his welcome speech for Narendra Modi said that
India-Israel relationship was a marriage made in heaven, but implemented on Earth. He
gave the new development formula for success as “I2 T2” that is equal to “Indian talent times
Israeli technology.”
 Israeli President Rivlin gave another description for the relations between the two countries. He
said that ‘I’ for ‘I’ is India for Israel, and ‘I’ with ‘I’ is India with Israel.
Key agreements signed
 India and Israel signed seven agreements to increase cooperation in key sectors like space,
agriculture and water conservation.
 A Memorandum of Understanding (MoU) was signed for setting up of USD 40 million worth India-
Israel Industrial Research and Development (R&D) and Technical Innovation Fund.
Analysis
 Prime Minister Narendra Modi’s visit to Israel from July 4-6 was a significant milestone. It was the
first-ever historic visit of an Indian Prime Minister and takes place as the two countries mark 25
years of establishment of diplomatic relations. Israeli PM Ariel Sharon came to India
during Vajpayee regime in 2003.
 The outcome is an impressive joint statement which elevated the relationship to a
‘strategic partnership’.
 The political message of the trip is clear i.e. India is no longer uneasy in dealing with Israel as
was the case in the past. Whether this was due to possible impact such relationship would have
on domestic politics or on the vast Indian Diaspora is a matter of perception.
 Every country pursues its foreign policy to maximise its own national interests. India
realizes Israel is no longer a pariah with her having a working relationship with conservative
states such as Saudi Arabia and United Arab Emirates.
 PM Modi had already undertaken visits to the United Arab Emirates, Saudi Arabia, Qatar

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 and Iran before embarking on his trip to Israel. Receiving Palestinian President Mahmoud
Abbas in Delhi in May 2017 eased the necessity of skipping a visit to Ramallah while
visiting Israel.
 India has finally de-hyphenated its relationship with Israel and Palestine, engaging with
the two arch-rivals separately and on mutually beneficial terms. In a clear departure from the
Indian practice of keeping Palestinian leaders prominently in the loop, Mr. Modi made a point of
not visiting the Occupied Territories.

USA Recognition of Jerusalem as capital of Israel and its implications:

US President has recognised Jerusalem as the capital of Israel and has decided to move its
embassy from Tel Aviv to the holy city.
What is implication of Trump’s Decision on Jerusalem?
• Undermine USA’s credibility as arbitrator: USA’s decision goes against its longstanding
neutrality and its clear siding with Israel can derail its role as Peace broker in Palestine, West
Asia and Afghanistan.
• Complicates two state solution: It may put the years of diplomatic efforts for two state solution
such as Madrid Conferences and Oslo accords on the backburner.
• Increase Religious Tensions: The perceived harm to Muslim claims in Jerusalem will result in
volatile protests across the Muslim world as Jerusalem is holiest ground not only in Judaism but
also is Islam’s third-holiest shrine and major Christian sites.
• Regional Conflicts: HAMAS has declared third Intifada and Iran and Syria have come out
openly in support of Palestine adding to volatility and instability in region. India voted against USA
rather than abstaining from voting despite USA’s pressure tactics. It indicates:
• It is in line with India’s non-alignment policy and support for Palestinian cause.
• It also represents India’s shift from a balancing power to a leading power on international stage.
Earlier also India supported Mauritius’s claim on sovereignty over Chagos archipelago and
second was India getting a seat in ICJ despite US objections.
• By supporting Palestine India stayed with major groupings like SCO, BRICS and major European
countries.
• India has significant interests in West Asian peace and stability as well thus necessitating such
move.

De-hyphenation of relations:
 De-hyphenation means delink two entities and consider them as individuals.
 Now India’s relationship with Israel would stand on its own merits, independent and separate from
India’s relationship with the Palestinians.
 This has bolstered the scope for addressing India’s national interests effectively and diversified
access to new markets and technologies.
 The hyphenation was a compulsion during the Cold War era, but it continued to underpin India’s
approach even in the subsequent period, probably out of the fear of antagonising the Arab.
 However, due to disturbances among the Arab states they were left incapable of pursuing a
strong foreign policy that made it easier for India to pursue its relations with Israel.
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Two- State Solution of Israel Palestine Issue:
 It envisages an independent State of Palestine alongside the State of Israel west of Jordan river.
 1937: Proposed on basis of Peel Commission report but rejected by Arabs.
 1948: UN partition plan given with Jerusalem under international control.
 Oslo Accord, 1991: Provided the foundation for political boundaries as it stands today.
 The Madrid Conference of 1991 was a peace conference co-sponsored by the US and the
Soviet Union to revive the Israeli–Palestinian peace process through negotiations.
 UNSC Resolution 1397: Agreed in 2000 with support from USA and becoming first UNSC
resolution to agree on two state solution.

Key-Points of India-Israel Joint Statement during visit of Prime Minister of Israel to India
(January 15, 2018):
1. Prime Minister Benjamin Netanyahu’s visit to India from 14 to 19 January 2018 closes a
momentous twenty fifth anniversary year of India-Israel relationship and its growing partnership. It
further strengthened the bonds between the two governments and peoples and have
consolidated the foundation for their Strategic Partnership.
2. Both sides are working together on a Five Year Joint Work Plan for strategic cooperation in
Agriculture and Water. Both sides also agreed to deepen cooperation in innovation, business
and trade, space, homeland security and cyber, higher education and research, science and
technology, tourism and culture.
3. The two prime ministers noted with satisfaction the commencement and implementation of India-
Israel development cooperation - three-year work programme in Agriculture (2018-2020).
4. The Prime Ministers welcomed the completion of all formalities for the launch of the India-Israel
Industrial R&D and Technological Innovation Fund (I4F) that was announced during Prime
Minister Modi’s visit to Israel.
5. The two Prime Ministers commended the decision of the respective Ministries of Science and
Technology to commence nine joint R&D projects in the areas of big data analytics in health
care and security in cyber space, in pursuance of their decision in July 2017 to upgrade
scientific and technological collaboration.
6. The two Prime Ministers welcomed the initiation of cooperation between India and Israel in the
energy sector with the signing of an MoU on Cooperation in the Oil and Gas sector.
7. The two Prime Ministers agreed that renewed efforts are required to realize the full potential for
bilateral trade and investment.
8. Noting that doing trade and business also requires better connectivity, the two Prime Ministers
have decided to expedite the conclusion of an Agreement on Maritime Transport that will
encourage greater business between the shipping organizations of India and Israel, and create
new opportunities in maritime services and training. They hope that this Agreement will also
encourage wider cooperation in development of maritime business and Israel’s participation in
the Sagarmala Project.
9. The two Prime Ministers are convinced that enhanced people-to-people contacts will forge the
strongest bonds of friendship between India and Israel in the future. They deemed it essential to
enhance connectivity between the two countries through the signing of a Protocol Amending
Air Transport Agreement to expand the scope of cooperation in the civil aviation sector.

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10. An Indian Cultural Centre will open in Israel in 2018 in pursuance of the Prime Minister of
India’s desire to promote greater cultural understanding. Both sides have signed an MoU in Film
Co-Production in recognition of the role that films play in promoting people-to-people contact.
11. Both Prime Ministers noted the readiness of Israeli companies to enter into joint ventures with
Indian companies in the defence sector under the Make in India initiative.
12. Recognizing the grave threat that terrorism poses to peace and security including from non-state
actors, both Prime Ministers reiterated that there can be no justification for acts of terror on any
grounds whatsoever and advocated strong measures against terrorists, terror organizations,
those who sponsor, encourage or finance terrorism or provide sanctuary to terrorists and
terror groups. They reiterated the importance of building comprehensive cooperation in counter-
terrorism, including cyber-space, and welcome the signing of the MoU on Cooperation in Cyber
Security between India and Israel.
13. They agreed to explore ways to develop joint programmes of assistance for third countries in
the areas of training, capacity building, and the development of small projects in the
agriculture, water, health-care and education sectors.
14. They reaffirmed their support for an early resumption of peace talks between Israelis and
Palestinians for arriving at a comprehensive negotiated solution on all outstanding issues,
based on mutual recognition and effective security arrangements, for establishing a just
and durable peace in the region.
15. The two Prime Ministers believe that durable and multifaceted cooperation is beneficial for
the welfare of the people of both countries, and consider the next twenty five years as an
opportune time to strengthen bonds between the peoples of India and Israel through activities that
enhance understanding and create opportunities for mutual progress.
An important newspaper article Analysis of Israeli PM visit:
 Israeli Prime Minister Benjamin Netanyahu's just concluded visit to India can be termed as highly
productive and successful – both on optics and on substance. Just prior to his arrival, Prime
Minister Narendra Modi had termed the visit as ''historic and special.'' This was Netanyahu’s first
visit to India, coming 15 years after the first visit by an Israeli Prime Minister Ariel Sharon in 2003.
 Two aspects of the visit are particularly remarkable. First, that it was a long 6-day visit. Normally
Heads of State and Government visit, even the friendliest of countries, for a maximum of 3 or 4
days. That the Israeli Prime Minister decided to invest so much time, effort, energy and
commitment to the India relationship is indeed exceptional. Second, the visit came a little more
than 6 months after the momentous and path-breaking visit by Prime Minister Narendra
Modi to Israel in July, 2017, the first ever by an Indian Prime Minister to that country after
establishment of diplomatic relations in 1992.
 Relations in a variety of sectors between the two countries have been expanding in a robust
manner since diplomatic ties were established 25 years ago. It is however incongruous that
notwithstanding the rapidly expanding ties, exchange of visits at the highest political level did not
take place.
 The 25th anniversary of diplomatic relations has hence witnessed both the heads of government
visiting each other to provide a significant impetus to bilateral partnership. It was earlier said that
India treats Israel as a mistress: that it is happy to have an affair behind the curtains with it
but is not prepared to acknowledge this relationship in the open. With these two high
profile back to back visits, this narrative has been shattered once and for all. The
relationship has now emerged in the open as a highly promising, normal partnership.
 It is imperative that for the partnership to realise its full potential, both India and Israel behave as

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 mature democracies and try to understand and appreciate the compulsions of each other on a
variety of regional and international issues. The long hiatus in upgrading the political relationship
to the highest level occurred because of India’s reluctance in acting in a manner that could
compromise its interests in West Asia. India is heavily dependent on the Gulf to meet its
energy requirements through import of oil and gas as well as for the significant
remittances sent home by the large 8 million diaspora working in that region.
 Safety and security of the Indian diaspora is also a matter of keen concern for India. India’s
hesitation in fully normalising relations with Israel was also dictated to a significant extent by
domestic political considerations as the government did not want to be seen to be doing anything
that would be construed adversely by the large domestic Muslim population. It would be essential
for Israel to be mindful and cognizant of this background so that no misunderstandings or
misplaced expectations derail the smooth progress of this propitious bilateral engagement.
 The two sides have done well to focus on the huge potential that exists in taking the
partnership to the next level. Defence is an area that had emerged even before diplomatic
relations were established. Israel had come to India’s help in the wars in 1962, 1965 and 1971,
as also post ’92 during the Kargil conflict in 1999. Israel has emerged as the third largest supplier
of sophisticated defence equipment and is likely to rapidly go up the ladder in the coming years.
Israel is now collaborating with India not only in supply of sophisticated defense equipment but
also in co-designing, co-production and manufacture of these systems under the Make in
India programme. In addition to meeting India’s expanding needs in this field, it will also help in
creating jobs and technological upgradation in the country. It will also boost innovation in this
sector.
 Innovation is a sector in which Israel is the clear global leader. It has the second largest
number of startups every year, next only to the United States. This is particularly commendable
considering the difference between the two countries in terms of their size, population, GDP etc.
Innovation in technology, water management, agriculture etc are areas where both
countries can cooperate to mutual benefit and advantage.
 Several agreements covering a wide array of areas including cyber security, metal batteries, oil
and gas, films production, space, solar thermal technologies etc. were signed between the two
countries. In addition, several contracts between the private sectors of the two countries were
entered into. This would help in significantly enhancing the volume of bilateral trade from US$
5 billion at present to the targeted level of US$ 10 billion in the near future.
 Personal chemistry and bonhomie of two leaders of course plays a useful role in advancing
relations between two countries but this is possible only when there is a wide congruence of
mutual interest. As is evident, there is a broad commonality of interest between the two countries.
Although it is a hyperbole to say as Netanyahu commented that relationship between India
and Israel is a ''marriage made in heaven'' (he had used the same expression during his recent
visit to China), it is nevertheless true that it is a win-win partnership for both the countries.
 India needs technology, innovation, defence equipment, cooperation in counter-terrorism,
training in intelligence gathering etc from Israel, all of which are required to make India a
secure, stable and prosperous nation with a better standard of living for its people. For Israel, in
addition to the huge market for its manufactured goods and technology as well as defense
products (it supplies about 40% of its annual production to India) that India represents, the
huge intangible benefit is also the recognition and acceptance it receives from the largest
democracy and rapidly growing economic power. More than 30 countries of the UN do not
recognize Israel. Being accepted as a friend by India hence holds special value and significance
for Israel.
 Cultural connections and people-to-people contacts are a significant element of India-Israel

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 partnership. India is one of the few countries in the world where Jews have not faced anti-
Semitism. Jews have come to India in different waves over the last two thousand years and
lived in different parts of the country without facing any discrimination. Notwithstanding
their small numbers, Jews have made a huge contribution to the cultural, artistic, military and
literary life in India.
 All the above mentioned synergies and congruity notwithstanding, there are issues like
Palestine and Iran on which both countries have divergent views. China and Pakistan will
also provide a challenge but of a lower magnitude. It would be expedient for both India and
Israel to take these differences in their stride and not allow them to muddy or strain their
bilateral ties.
 Counter-terrorism, security, defence, cyber-security, agriculture, innovation, water
management, films, people to people contact etc are some of the significant areas in which
relations can grow rapidly and significantly. It will do well for the two countries to pay their
undivided attention to strengthening and expanding this partnership. Prime Minister Benjamin
Netanyahu's visit will play a colossal role in taking bilateral ties several rungs up the ladder.

IDSA Analysis on India-Israel relationship: Key –Points

 Bilateral relations between India and Israel hinge on three pegs – economic, defence and
people to people contacts.
 Foreign policy concerns for the two countries are dominated by third party issues such as
Iran and the Palestinian issue.
 India-Israel relations are conforming to the realpolitik equation in international relations, and that
self-interest is still important to India. There is a lot of complementarity between both nations’
economic interests.
 Both sides have faced challenges in the defence sector but this has been an issue on which
cooperation has been robust. Military exercises should be incorporated into defence
cooperation since Israel has a growing interest in the Indian Ocean Region (IOR).
 In the area of academics, one issue constraining better relations between Indian and Israeli
academics is money. Business communities in both countries should be mobilised to
support these types of exchanges.
 Asian alliance comprising India, Israel, South Korea, Japan and Australia could work
together to deal with issues including missile defence and piracy.
 At the global level, the differences in outlook of both nations are evident. India seems more in
favour of a multi-polar world while Israel prefers a uni-polar one. But both nations do not
want to see a weakened US. Thus greater cooperation should be undertaken between Israel and
India to support lobby groups and educate Americans on issues of concern to both nations.

Practice Questions:
1. Do you think India-Israel Relationship is at its best? What are the prospects and challenges
in India- Israel Relationship? Analyse.
2. India is Israel’s biggest purchaser of its Defence equipment and both countries regard each
other as natural allies. Do you think Israel qualifies as India’s natural ally in the region?
Critically discuss.

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3. Do you think India’s increasing proximity to Israel is in its self interest in the region?
Critically comment.
4. Critically analyse the recent developments in India and Israel relations and how India has
strengthened strategic partnership with Israel?
5. Describe Israel’s role in enhancing water conservation practices in Indian agriculture?
6. The major highlight of India-Israel relations are the series of defence and military deals.
Comment.

Source:
https://www.mea.gov.in/Portal/ForeignRelation/India_Israel_relations_may2018.pdf
https://www.mea.gov.in/press-
releases.htm?dtl/29353/Visit+of+Prime+Minister+of+Israel+to+India+January+1419+2018
https://www.mea.gov.in/bilateral-
documents.htm?dtl/29357/IndiaIsrael+Joint+Statement+during+visit+of+Prime+Minister+of+Israel+to+I
ndia+January+15+2018
https://www.mea.gov.in/bilateral-
documents.htm?dtl/28593/IndiaIsrael_Joint_Statement_during_the_visit_of_Prime_Minister_to_Israel_J
uly_5_2017
http://www.indembassyisrael.gov.in/
https://idsa.in/taxonomy/term/587
https://idsa.in/event/india-israel-relations-at-25
https://idsa.in/issuebrief/modi-redefines-india-palestine-policy_prkumaraswamy_180517
https://www.livemint.com/Politics/9iQfaSR2P2LBusSvoVmSSO/Narendra-Modis-Israel-visit-said-to-
spur-missile-deals-as-t.html
http://www.indiandefencereview.com/news/indo-israel-defence-cooperation-the-road-ahead/
http://shodhganga.inflibnet.ac.in/bitstream/10603/15118/8/08_chapter%203.pdf
https://en.wikipedia.org/wiki/Two-state_solution
http://www.academia.edu/34181535/Two_State_Solution
https://www.orfonline.org/expert-speak/india-israel-relations-a-burgeoning-partnership/
https://www.hindustantimes.com/india-news/israeli-pm-benjamin-netanyahu-s-first-india-visit-aims-to-
deepen-trade-ties/story-fCis4LxWgfLnMfac7UN7gN.html

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