India’s relations with countries in the Middle East have always been of significant importance due to historical ties, economic interests, and geopolitical considerations. Among its Middle Eastern friends, Saudi Arabia and the United Arab Emirates (UAE) have often been touted as major players in India’s economic landscape. However, there is another, arguably more significant, player in the mix: Israel. Israel may not be the biggest investor in India, but its unique partnership with the country goes beyond financial transactions.
A Friendship Beyond Money
While investments are indeed a significant part of India’s relationship with Israel, the depth of this partnership cannot be measured solely in monetary terms. Israel has been a steadfast ally of India, providing not only capital but also vital military support and political backing. At the heart of this special relationship are the personal ties between leaders Benjamin Netanyahu and Narendra Modi, who have fostered a strong bond between the two nations.
Military and Political Support
India and Israel share strong military and political ties, which serve as driving forces behind their economic collaboration. These ties enable Indian businesses to expand and invest in Israeli startups, entrepreneurs, and industries. India’s robust economy, which recorded a GDP of over 3.3 trillion US dollars in 2022, empowers Indian entrepreneurs to create billion-dollar companies and engage in international investments.
Strategic Acquisitions
Indian companies have made strategic acquisitions in Israel, further solidifying the partnership. One of the most notable acquisitions is Reliance Industries’ interest in acquiring Tower Semiconductor, a crucial player in the global chip supply chain. This move could potentially enable India to have its billion-dollar chip company, bolstering its competitiveness worldwide.
Sun Pharma’s acquisition of Taro Pharmaceuticals and Adani Port’s acquisition of Haifa Port have also reinforced India’s presence in Israel, strategically positioning India in pharmaceuticals and logistics, respectively. Infosys’s acquisition of Panaya demonstrates India’s pursuit of innovation and technology advancement through international collaborations.
Joint Ventures and Collaborations
Beyond acquisitions, joint ventures and collaborations between Indian and Israeli companies have thrived. For example, Tata Group partnered with Israel Aerospace Industries to co-develop defense products, including tanks and radars. Such collaborations ensure the growth of military ties and economic profit.
The governments of India and Israel have also inked significant deals, such as industrial research and development cooperation agreements. These pacts enable cooperation in sectors like healthcare, aerospace, and electronics, leveraging Israel’s expertise in advanced technologies.
Economic Impact
The impact of these collaborations extends to various sectors. India’s IT sector, in particular, has witnessed the rise of Indian employees in Israel, contributing to remittances and enhancing India’s global reputation for tech expertise.
A Unique Partnership
India and Israel may not share a geographical border, but their unique partnership transcends distance. Israel’s prowess in technology, combined with India’s economic strength, has created a synergy that benefits both nations. As India continues to grow as one of the world’s fastest-growing economies, its investments and partnerships with Israel promise a bright future of innovation, economic growth, and technological advancement.
India’s relationship with Israel is more than just a financial transaction. It’s a bond built on shared values, mutual interests, and the pursuit of excellence in various fields. As the two nations continue to collaborate and invest in each other, their partnership is set to reach new heights, transforming the landscape of the Middle East and beyond.
