What was agreed in New Delhi?
India and Israel have signed a bilateral investment agreement to expand trade during far-right Israeli Finance Minister Bezalel Smotrich’s visit to India. The deal was signed in New Delhi with Indian Minister of Corporate Affairs Nirmala Sitharaman.
Sitharaman called for deeper collaboration in “cybersecurity, defence, innovation and high-technology.” Smotrich, sanctioned by several Western nations for his ties to illegal West Bank settlements, said the pact marked “an important strategic step for our joint vision.”
“The agreement reached today between Israel and India reflects our economic growth, innovation and mutual prosperity,” Smotrich wrote on X.
India’s Finance Ministry described the deal as a “historic milestone” that will also expand cooperation in fintech, infrastructure, financial regulation and digital payment systems.
Trade and defence ties
Bilateral trade between the two countries stood at $3.9 billion in 2024, while mutual investments were valued around $800 million, according to official figures.
Defence remains the backbone of ties, with New Delhi serving as Israel’s largest weapons buyer. At the same time, Israeli companies have sought to recruit up to 100,000 Indian workers to replace Palestinians whose permits were revoked after Israel launched its war on Gaza in October 2023.
India still officially supports a two-state solution to the Israel-Palestine conflict but has repeatedly abstained from United Nations votes critical of Israel, including a 2024 resolution demanding an “immediate, unconditional and permanent” ceasefire in Gaza.
Deepening ties amid Gaza genocide
The signing comes as Israel faces a genocide case at the International Court of Justice and war crimes charges at the International Criminal Court over its campaign in Gaza, which has killed more than 64,500 Palestinians since October 2023.
Despite global outrage, Prime Minister Narendra Modi’s Hindu nationalist government has moved closer to Israel. New Delhi was one of the first capitals to condemn the October 7 Hamas assault as “an act of terror” and has since allowed pro-Israel rallies while cracking down on pro-Palestinian demonstrations.
Although India continues to voice support for a two-state solution, critics say its actions show a deepening alignment with Tel Aviv.
Broader regional context
The deal also reflects shifting geopolitical alignments in Asia.
India has resisted international efforts to condemn Israeli strikes on Iran and has avoided joining statements critical of Tel Aviv. However, after former US President Donald Trump imposed steep tariffs on Indian goods last month, New Delhi signed a Shanghai Cooperation Organisation (SCO) declaration condemning US-Israeli bombing of Iran.
India is also working to mend ties with China, its longtime rival, with Chinese President Xi Jinping telling Modi on the sidelines of the SCO summit in Tianjin that Beijing and New Delhi “should be partners, not rivals.”
Smotrich’s warm reception in India highlights Modi’s determination to expand ties with Israel despite mounting accusations of genocide. For critics, the deal underscores how economic and strategic interests are being prioritized over accountability for Gaza.
