India-Israel Bilateral Relations

Political Relations

India announced its recognition of 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 a Consulate.
Embassies were opened in 1992 when full diplomatic relations were
established.

Since the upgradation of relations in 1992, defence and agriculture formed the
two main pillars of our bilateral engagement. In recent years, relations have
seen rapid growth across a broad spectrum of areas and the future vision of the
cooperation is of a strong hi-tech partnership as befits two knowledge
economies.

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, H.E. 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.

Economic and Commercial Relations

From US$ 200 million in 1992 (comprising primarily trade in diamonds),

bilateral merchandise trade stood at US$ 5.65 billion (excluding defence) in
2018-19, with the balance of trade being in India’s favour by US$ 1.8 billion.
Trade in diamonds constitutes close to 40% of bilateral trade. India is Israel's
third largest trade partner in Asia and seventh largest globally. In recent years,
the bilateral trade has diversified into several sectors such as pharmaceuticals,
agriculture, IT and telecom, and homeland security. Major exports from India
to Israel include precious stones and metals, chemical products, textiles and
textile articles, etc. Major imports by India from Israel include precious stones
and metals, chemicals and mineral products, base metals and machinery and
transport equipment. Potash is a major item of Israel’s exports to India, with
India buying a significant percentage of its requirement from Israel. In recent
years, Israel has taken a strategic decision to strengthen economic relations
with India, China and Japan. Indian software companies, notably TCS, Infosys,
Tech Mahindra and Wipro, are beginning to expand their presence in the Israeli
market. 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.

Investment

Indian investments in Israel (April 2000-June 2017) totaled USD 122.4 million
(Department of Industrial Policy & Promotion, GoI). Indian companies are
marking their presence in Israel through mergers and acquisitions and by
opening branch offices. TCS started operations in Israel in 2005; State Bank of
India opened a branch in Tel Aviv in 2007; Jain Irrigation fully acquired
NaanDan, an Israeli irrigation equipment manufacturing company, in 2012 and
Sun Pharma has a 66.7% stake in Israel’s Taro Pharmaceutical Industries.
Infosys, Tech Mahindra and Wipro Infrastructure Engineering are some other
major Indian companies which have made notable acquisitions/investments in
Israel during the period 2015-2016. In 2017, India-based Saisanket Enterprises
Private Limited acquired Shtula, a leading Israeli manufacturer of metal parts
and metal devices. In January 2019, India's Lohia Group acquired Israeli
defense company Light & Strong. There are also representatives of Think
Future Technologies and Cyient in Israel.

There are over 300 investments from Israel in India mainly in the high-tech
domain and in agriculture. These investments are varied in nature -
manufacturing plants; R&D centers; subsidiaries etc. There is a growing
preference for Israeli companies in sectors such as water technologies,
homeland security and real estate in addition to traditional areas such as
agriculture, chemicals etc. Teva Pharmaceuticals, IDE, Netafim (invested more
than USD 25 million in India, 2017), ADAMA (invested over USD 50 million
in India, 2017),etc. are among the leading Israeli companies, which have
notable investments in India.

Agriculture
Under a comprehensive Work Plan for cooperation in agriculture signed on 10
May 2006, bilateral projects are implemented through MASHAV (Center for
International Cooperation of Israel’s Ministry of Foreign Affairs) and
CINADCO (Centre for International Agricultural Development Cooperation of
Israel’s Ministry of Agriculture and Rural Development). Agricultural
cooperation between the two sides is formalized through 3-year Work plans
wherein 3-year Action plans are developed. The two sides signed the fourth
phase of the joint action plan (2018-20) in July 2017. Thus far, out of 29
Centres of Excellence expected to be fully active by 2020 in twelve Indian
states (Bihar, Gujarat, Haryana, Karnataka, Maharashtra, Punjab, Rajasthan,
Tamil Nadu, Uttar Pradesh, Mizoram, Andhra Pradesh and West Bengal), 25
have been commissioned.

India has benefited from Israeli expertise and technologies in horticulture

mechanization, protected cultivation, orchard and canopy management, nursery
management, micro- irrigation and post-harvest management particularly in
Haryana and Maharashtra. Israeli drip irrigation technologies and products are
now widely used in India. Some Israeli companies and experts are providing
expertise to manage and improve dairy farming in India through their expertise
in high milk yield.

Defence & Security

India imports critical defence technologies from Israel. There are regular
exchanges between the armed forces. The last major visit from the Indian side
was that of the Chief of Air Staff, Air Chief Marshal B.S.Dhanoa, who visited
Israel from 22-24 May 2018 to attend the multilateral conference of Air Chiefs
& Commanders. Naval Staff Admiral Sunil Lanba visited Israel in June 2017 in
his capacity as Chairman of COSC. The last round of Defence Secretary level
talks in the JWG on Defence were held in New Delhi in July 2018. As part of
the regular goodwill visits of Indian ships, three Indian naval ships from the
Western Fleet made a port call in Haifa in May 2017. INS Tarangini, a naval
training ship, made a port call in Haifa in September 2018.

There is cooperation on security issues, including a Joint Working Group on

Counter-Terrorism. In February 2014, India and Israel signed three important
agreements on Mutual Legal Assistance in Criminal Matters, Cooperation in
Homeland Security, and Protection of Classified Material. There is a Joint
Steering Committee under the agreement on Homeland Security, aided by
thematic Joint Working Groups. Since 2015, IPS officer trainees have been
visiting the Israel National Police Academy every year for a one-week long
foreign exposure training at the end of their training in the National Police
Academy, Hyderabad.

Cooperation in S&T and Space

India-Israel cooperation in S&T is overseen by the Joint Committe on S&T,

established under the S&T Cooperation Agreement signed in 1993. Its last
meeting took place in March 2019 in Israel.

During the visit of PM Modi in July 2017, an MoU for establishing India-Israel
Industrial R&D and Innovation Fund (I4F) by the Department of Science and
Technology, India and the National Authority for Technological Innovation,
Israel 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.

During the visit of PM in July 2017, space agencies-ISRO & Israel Space
Agency- signed three agreements on space cooperation.

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. More than 50000
Israelis visited India in 2018, whereas more than 70000 Indian tourists visited
Israel during the year. Air India started direct flights between New Delhi and
Tel Aviv in March 2018, with 5 flights per week currently. Israeli carrier, El
Al, operates direct flights between Mumbai and Tel Aviv.

Several courses related to India are taught at Tel Aviv University, Hebrew
University and Haifa University. Several private and public Indian universities
have entered into academic agreement with their Israeli counterparts. In May
2013, India and Israel launched a new funding programme of joint academic
research with the University Grants Commission and the Israel Science
Foundation as nodal organizations.

There are approximately 550 Indian students in Israel, mostly at doctoral and
post-doctoral level. Since 2012, Israel has been offering post-doctoral
scholarship to students from India and China in all fields. The Government of
Israel also offers short term summer scholarships for Indian students. India
offers ICCR scholarships to Israelis every year for various courses in Indian
institutions.

Indian Community

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.

Shri Eliyahu Bezalel hailing from Chennamangalam, Cochin has distinguished

himself as an eminent agriculturalist and became the first Israeli of Indian
origin to receive Bhartiya Pravasi Samman in 2005. Sheikh Ansari, who
manages the Indian Hospice in Jerusalem, a unique Indian connection to the
Holy City, was honoured with the Pravasi Bharatiya Samman in 2011. In 2017,
Dr. Lael Best, an Israeli cardiothoracic surgeon of Indian origin, was also
conferred the award.

In 2013, the Indian Embassy in Tel Aviv facilitated the first-ever National
Convention of Indian Jews in Israel that was held on September 23, 2013 in
Ramla. The event brought together nearly 5,000 people from all the four major
groups of Indian Jews. Four more annual Conventions have since been held in
subsequent years in cities of Yeruham (2014), Ramla (2015), Kiryat Gat (2016)
and Ashkelon (2017). The Know India Programme has been effective in
binding the Indian origin youth to India.

There are about 14,000 Indian citizens in Israel, of whom around 13,200 are
care-givers employed by Israeli elders to take care of them. Others include
diamond traders, some IT professionals and students.

PM Modi addressed a gathering of around 8000 PIOs and Indian nationals

working in Israel at the Tel Aviv Exhibition grounds during his visit in July
2017.

Useful Resources
Website : https://www.indembassyisrael.gov.in/
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Twitter : https://twitter.com/indemtel

June 2019