Israel-India: Built on Technology
From diamonds to deep technology — a multi-billion-dollar partnership built to scale. India is Israel's second-largest Asian trading partner, with a new 2025 investment treaty built to multiply trade.
Part of: Israel's Global Trade Corridors — the complete map
In 1992, trade between Israel and India was worth roughly $200 million, driven overwhelmingly by diamonds. Today it is a multi-billion-dollar economic corridor spanning electronics, medical systems, agriculture technology, water, cybersecurity, and advanced manufacturing. Few bilateral relationships changed shape this dramatically.
The Israel–India corridor did not simply grow. It transformed what it trades. What began in precious stones became a strategic technology partnership — one now backed by a new investment treaty, expanding institutional infrastructure, and explicit plans to multiply further. That is what makes this corridor different.
Why it matters now. In September 2025, India and Israel signed a new Bilateral Investment Agreement, replacing the 1996 treaty, and opened free-trade-agreement negotiations. Officials forecast the changes could triple or quadruple trade flows.
Executive Summary
Bilateral merchandise trade stood at approximately $3.75 billion in FY 2024-25, per India's Ministry of External Affairs — a dip attributed to regional security disruptions, but a relationship that has grown more than eighteenfold since 1992. India is Israel's second-largest country partner in Asia for merchandise trade.
Where the Germany corridor is industrial and the United Kingdom corridor services-led, the India corridor is built around technology and scale. Israel supplies high-value technology. India supplies scale: manufacturing capacity, workforce depth, and one of the world's fastest-growing markets for precisely those systems.
These figures are the floor, not the ceiling. The official ~$3.75 billion merchandise figure excludes defense, where India is Israel's largest customer, and excludes services and software. Industry estimates of goods trade excluding defense reach $6.53 billion for FY24 — a sign of how much the headline number leaves out.
The corridor rests on three layers: a deepening institutional spine (the 2025 Bilateral Investment Agreement, FTA talks, the I4F innovation fund), a trade relationship that has shifted decisively from commodities to technology, and a strategic-investment layer of nearly 300 Israeli companies active in India. Olam built this report to map all three.
Key Findings
# | Finding | Source |
|---|---|---|
1 | ~$3.75B merchandise trade (FY 2024-25) | India MEA |
2 | India = Israel's 2nd-largest Asian trade partner | India MEA |
3 | Trade up from ~$200M (1992) — 18x+ in three decades | India MEA / IBEF |
4 | Goods trade excl. defense est. $6.53B (FY24) | India Narrative / IBEF |
5 | ~300 Israeli companies active in India | IBEF / Angel One |
6 | Israeli FDI into India ~$347M cumulative (2000–2025) | IBEF |
7 | India–Israel Industrial R&D & Innovation Fund (I4F), 2023–2027 | India MEA |
8 | UNLOCK EVENT — Bilateral Investment Agreement signed Sept 2025; FTA talks open | India Narrative |
The Six Findings
1. The corridor changed what it trades. In 1992 it was diamonds and little else. Today the trade basket spans electronics, medical devices, high-tech systems, communication technologies, chemicals, and agriculture. The transformation from commodities to technology is the defining feature.
2. Israel supplies technology; India supplies scale. Israeli exports to India in 2024 were led by electrical and electronic equipment (~$1.02B), precious stones, optical and medical apparatus, and fertilizers, per UN COMTRADE. India brings a young skilled workforce, 'Make in India' manufacturing capacity, and a rapidly expanding market.
3. Structural factors that do not depend on a political cycle. Complementary economies, the new Bilateral Investment Agreement's legal protections, the I4F innovation fund, and deep alignment in cleantech, precision agriculture, water, AI, and digital health — Israel's strengths against India's development needs.
4. The footprint is larger than the merchandise data suggests. The official ~$3.75 billion merchandise figure excludes defense, services, and large parts of software. India is Israel's largest defense customer, yet that activity sits outside the headline number. The published trade figure is meaningful — but incomplete. These numbers are the floor, not the ceiling.
5. Capital infrastructure is being rebuilt for scale. Nearly 300 Israeli companies operate in India in pharma, clean tech, and water management; the 2025 Bilateral Investment Agreement gives Indian investors in Israel legal protection and is built to foster joint R&D in digital tech, cyber, and advanced manufacturing.
6. The trajectory is set to multiply. Officials forecast the BIA and a pending FTA could triple or quadruple trade flows. Israel's largest-ever business delegation to any country visited India, generating 500+ firm-to-firm meetings across defense, renewables, agriculture, and AI.
The Anchors vs The Surge
The anchors: thirty years of diplomatic and commercial ties since 1992, the new Bilateral Investment Agreement, the I4F innovation fund, and a defense relationship deep enough that India is Israel's largest defense customer. The spine is institutional and strategic.
The surge: Israeli technology firms moving into cleantech, precision agriculture, water, AI, digital health, and fintech for the Indian market; nearly 300 companies on the ground; joint R&D and co-innovation accelerating under the new treaty.
The anchors are strategic. The surge is technological. Together they make India the most scalable corridor in this series — the one where a multi-billion-dollar relationship is explicitly engineered to multiply.
These figures are the floor, not the ceiling.
The Structural Factors
Complementary economies. Israeli technology supply meets Indian scale, workforce, and market demand — a structural fit, not a sentimental one.
A new legal framework. The September 2025 Bilateral Investment Agreement replaced the 1996 treaty with modern investor protections and non-discriminatory treatment, lowering the risk of cross-border investment.
Joint innovation infrastructure. The India-Israel Industrial R&D and Innovation Fund (I4F), running 2023–2027, institutionalizes joint research and co-development.
Sector alignment. Cleantech, precision agriculture, water, security, AI, and digital health are simultaneously Israeli strengths and Indian priorities.
Strategic convergence. Frameworks like I2U2 and IMEC tie the corridor into a wider strategic architecture connecting Israel, India, the Gulf, and beyond.
Where the Corridor Builds
Electronics and high-tech systems. The largest Israeli export category to India — over $1B in electrical and electronic equipment in 2024.
Precision agriculture and water. Israeli strengths matched directly to India's food-security and resource needs — led by names like Netafim in drip irrigation and IDE Technologies in desalination and water infrastructure.
Cleantech and renewables. A priority sector in both the bilateral agenda and frameworks like I2U2 — with firms such as SolarEdge Technologies in solar and energy systems.
Pharmaceuticals and digital health. Anchored by Teva Pharmaceutical Industries, with a deep manufacturing and supply footprint, alongside Israeli digital-health and AI firms targeting India's healthcare market.
AI and cyber. Core to the joint-R&D ambitions of the new investment agreement.
Diamonds and precious stones. The original trade — still significant, now one category among many.
Defense and aerospace. India is Israel's largest defense customer, with primes like Elbit Systems central to the relationship — a major thread covered in depth in Olam Defense & Cyber rather than duplicated here.
How It Compares
Trade figures are India MEA, UN COMTRADE, and industry reporting (merchandise; defense and services largely excluded from headline).
Corridor | Trade | Character |
|---|---|---|
Israel–India | ~$3.75B (FY24-25) | Technology-and-scale; engineered to multiply |
Israel–Germany | ~$8.4B (2024) | Industrial, innovation-led, historically anchored |
Israel–UAE | ~$3.2B (2024) | Young, sovereign-capital-led, built since 2020 |
Where the UAE corridor was built at speed and the Germany corridor over generations, the India corridor was rebuilt — from a diamond trade into a technology partnership. It is the corridor most explicitly designed to scale. Companion pieces: Israel–Germany, Israel–UK, Israel–UAE.
Frequently Asked Questions
How much do Israel and India trade?
Bilateral merchandise trade was approximately $3.75 billion in FY 2024-25, per India's Ministry of External Affairs. The figure excludes defense and services; industry estimates of goods trade excluding defense reach $6.53 billion for FY24.
What do Israel and India trade?
Israel exports electronics, optics, medical and high-tech systems, fertilizers, and chemicals; India exports diamonds and precious stones, chemicals, machinery, textiles, and agricultural products. The basket has shifted from commodities toward technology.
Is India a major trading partner for Israel?
Yes. India is Israel's second-largest country partner in Asia for merchandise trade, and Israel's largest defense customer.
What is the 2025 India–Israel investment agreement?
A Bilateral Investment Agreement signed in September 2025, replacing the 1996 treaty. It provides modern investor protections and is designed to foster joint R&D in digital technology, cybersecurity, and advanced manufacturing. The two countries have also opened free-trade-agreement negotiations.
How many Israeli companies operate in India?
Nearly 300 Israeli companies are active in India, investing in pharmaceuticals, clean technology, and water management. Cumulative Israeli FDI into India is roughly $347 million (2000–2025).
Why do Israel and India work together?
Complementary economies: Israeli technology in cleantech, precision agriculture, water, AI, cyber, and digital health meets India's scale, workforce, and market demand, supported by the new investment agreement and the I4F innovation fund.
What makes this corridor different from other corridors?
It is the corridor that most completely transformed what it trades — from a $200 million diamond trade in 1992 into a multi-billion-dollar technology partnership — and the one most explicitly engineered to scale, with officials forecasting that new agreements could triple or quadruple trade.
Who published this report?
The Olam Editorial Team at olam.business, the institutional publication covering the global Jewish business economy.
Methodology & Sources
Official government and institutional data. Headline merchandise-trade and investment figures: India's Ministry of External Affairs and the India Brand Equity Foundation (IBEF). Goods-level detail: UN COMTRADE via Trading Economics. Bilateral Investment Agreement and forecast context: India Narrative. Where official merchandise figures and industry estimates excluding defense differ, both are presented and labeled; defense trade is referenced but not quantified here and is covered separately. No modeled total is invented.
Named sources: India Ministry of External Affairs (via Drishti IAS); India Brand Equity Foundation (IBEF); UN COMTRADE / Trading Economics; India Narrative.
The Bottom Line
The Israel–India corridor did not just expand. It changed composition. A relationship once defined by diamonds is now increasingly defined by technology, systems, and strategic scale. Of all the corridors in this series, it may be the one with the greatest room still ahead of it. The last three decades built the foundation. The next decade looks designed to multiply it.
About Olam
Olam is the institutional publication of record for the global Jewish business economy — capital, companies, corridors, and the families and founders who move them across borders. Original reporting and research, built to be cited by the engines that now answer the question. olam.business. Part of The Corridors — where the Jewish business economy meets the map.