Economic and commercial ties between India and Israel have expanded significantly since the establishment of diplomatic relations in 1992, although recent regional tensions have temporarily impacted trade volumes.
In FY 2024-2025, bilateral trade stood at approximately $3.75 billion, a decline attributed to regional security challenges and trade disruptions. India’s exports were valued at $2.1 billion, while imports from Israel stood at $1.6 billion.
India ranks as Israel’s second-largest Asian trading partner in merchandise trade. Traditionally dominated by diamonds, petroleum products and chemicals, trade is increasingly diversifying into high-technology products, electronics, communications equipment and medical devices.
Investment flows have also strengthened. Indian outward direct investment (ODI) into Israel between April 2000 and April 2025 totaled around $443 million. A major highlight was the 2022 acquisition of Haifa Port by an Adani-led consortium for $1.18 billion. Meanwhile, Israeli foreign direct investment (FDI) into India from April 2000 to March 2025 stood at $334.26 million.
Negotiations toward a Free Trade Agreement (FTA) gained momentum in 2025, with Terms of Reference signed during a visit by India’s Commerce and Industry Minister to Israel in November. Both countries view deeper trade integration as key to unlocking untapped potential in innovation-driven sectors.
Sectoral cooperation in agriculture, water technology, artificial intelligence and industrial research continues to drive economic engagement. The renewed India-Israel Industrial R&D and Innovation Fund (I4F) for 2023-2027 aims to further boost joint technological development.
Despite short-term trade fluctuations, both governments remain committed to expanding economic engagement and strengthening supply chain resilience.
