Israel

India’s expanding strategic alignment with Israel has sparked debate over whether New Delhi is adopting elements of what some describe as an “Israel model” in its security and governance approach, particularly in Kashmir. The discussion intensified after a senior diplomat publicly referenced the model in 2019, months after the revocation of Jammu and Kashmir’s semi-autonomous status.

India and Israel are expected to resume negotiations on a long-pending Free Trade Agreement as early as next month, signaling renewed momentum in bilateral economic relations. The talks aim to deepen trade integration, reduce tariff barriers and unlock new opportunities across sectors such as technology, agriculture, defense and pharmaceuticals. With bilateral trade already showing steady growth, policymakers on both sides see the agreement as a strategic lever to expand market access and strengthen supply chains.

India and Israel are poised to formalize a bilateral investment treaty (BIT), marking a significant step toward strengthening economic ties between the two nations. The agreement is expected to provide a framework for promoting and protecting cross-border investments, offering legal certainty, dispute resolution mechanisms, and safeguards against expropriation. By encouraging mutual investments in sectors such as technology, defense, agriculture, and infrastructure, the treaty aims to deepen strategic economic cooperation, attract private capital, and stimulate innovation-driven growth.

Israel’s Finance Minister recently visited Gujarat International Finance Tec-City (GIFT City), highlighting the growing interest in India’s emerging financial hubs. The visit focused on exploring collaboration in fintech, investment facilitation, and innovative financial services. Officials from both countries discussed opportunities for joint ventures, cross-border capital flows, and technology-driven solutions in banking and insurance sectors.

In a candid briefing in New Delhi, Israeli Ambassador to India Reuven Azar reiterated his country’s firm commitment to curbing Iran’s nuclear ambitions, stating that Israel will persist in using its capabilities to “degrade” Tehran’s nuclear infrastructure. While acknowledging the preferable route of diplomacy, Azar underscored the threat posed by Iran’s nuclear and missile programs and emphasized that Israel remains prepared to act militarily if necessary.

India has chosen to distance itself from the Shanghai Cooperation Organisation’s (SCO) collective condemnation of Israel’s ongoing military offensive against Iran, reflecting its strategic neutrality amid a volatile geopolitical crisis. The recent escalation between Israel and Iran—marked by strikes on nuclear and military sites, civilian casualties, and reciprocal missile attacks—has alarmed global leaders. While the SCO, which includes key regional powers, denounced Israel’s actions, India abstained from endorsing the statement.

Tensions between Israel and Iran have erupted into open conflict, with sustained missile and drone attacks extending into a fourth consecutive day. The ongoing exchange has resulted in significant civilian casualties on both sides and the deaths of key Iranian military figures, including the Islamic Revolutionary Guard Corps (IRGC) intelligence chief. Iran has expanded its strikes to Israel’s eastern targets, including oil infrastructure, while Israel continues its aggressive campaign against Iranian military and urban centers.

On Friday, Air India, India’s flagship carrier, was forced to reroute 16 long- and ultra-long-haul international flights due to escalating tensions between Israel and Iran. The immediate closure of Iranian airspace, following Israel's military strike on Tehran, led to significant disruptions in global air travel. Air India, in a travel advisory, assured passengers that arrangements were being made to ensure their safe arrival at their destinations, despite the unforeseen crisis.

In a strategic move aimed at expanding agricultural trade, India has requested Israel to grant market access for a diverse range of agricultural commodities. During a recent bilateral meeting, Indian Agriculture Minister Shivraj Singh Chouhan and Israeli counterpart Avi Dichter discussed ways to increase the export of products like onions, garlic, turmeric, and several fruits, including mangoes and pomegranates.