This article covers economic relations between India and Israel: the value and composition of bilateral trade, investment in both directions, the agreements that frame economic ties, industrial research and development funds, the business forums and ministerial visits that support commerce, and the dialogue on export controls. It is based on the Ministry of External Affairs (MEA) bilateral brief of February 2026.

Bilateral trade

According to the MEA brief of February 2026, India-Israel trade and economic ties have grown rapidly since diplomatic relations began in 1992.

In FY 2024-2025, bilateral trade fell to US$ 3.75 billion, which the brief attributes to regional security issues and trade disruptions. In that year, India's exports were USD 2.1 billion and its imports USD 1.6 billion.

The brief states that India ranks as Israel's second-largest Asian trading partner in merchandise. Trade is dominated by diamonds, petroleum and chemicals, but is expanding into electronics, high-tech products, communications and medical equipment.

Investment

Indian ODI to Israel totalled about US$ 443 million for the period April 2000 to April 2025, according to the brief. The brief also records a 2022 Adani-led acquisition of Haifa Port for USD 1.18 billion.

In the other direction, Israeli FDI in India for April 2000 to March 2025 was USD 334.26 million.

Economic agreements

The brief records these recent steps in the legal framework for economic relations:

  • Bilateral Investment Agreement: signed during the visit of Israeli Finance Minister Bezalel Smotrich, who led a delegation to India on 8-10 September 2025.
  • Terms of Reference for the India-Israel Free Trade Agreement: signed during the visit of the Minister of Commerce and Industry (CIM), Piyush Goyal, to Israel on 20-22 November 2025.

During his November 2025 visit, CIM called on the President of Israel and Prime Minister Netanyahu. He also met Israel's Minister of Economy and Industry, Minister of Finance and Minister of Agriculture and Food Security, and took part in the 4th India-Israel Business Forum and CEOs Forum.

Industrial research and development

Under a bilateral MoU on Industrial Research and Development Initiative signed in May 2005, the India-Israel Initiative for Industrial R&D (i4RD) was set up to support joint industrial R&D projects.

In 2017, during Prime Minister Modi's visit, an MoU established the India-Israel Industrial R&D and Innovation Fund (I4F) between India's Department of Science and Technology and Israel's National Authority for Technological Innovation. As of February 2026, the fund has been renewed for 2023-27.

Business forums and delegations

Israeli ministers have brought business delegations to India on several occasions:

  • 16-20 April 2023: the Israeli Economy Minister visited with a business delegation.
  • 9 May 2023: the then Foreign Minister Eli Cohen visited with a business delegation. He met Prime Minister Modi and EAM, and co-chaired a business forum with India's Jal Shakti Minister.
  • 2-3 December 2024: Economy Minister Nir Barkat visited India and met EAM, CIM and the MoS Science & Technology.
  • 11-13 February 2025: Minister for Economy and Industry Nir Barkat returned with a delegation of Israeli CEOs and businesspersons for the India-Israel CEO Forum and Business Forum. During the visit, he and CIM jointly released the India-Israel Joint Postage Stamp on Holi and Purim.

EAM Dr S. Jaishankar met Minister Barkat again during his visit to Israel in December 2025. CIM and Minister Barkat also met on the margins of the OECD WTO Mini Ministerial Meeting in Paris on 3 June 2025. The Chief Economist of the Israeli Ministry of Finance visited India on 28-29 May 2025.

Export controls

The 2nd India-Israel Export Control Dialogue was held in Tel Aviv on 27-28 October 2025.