Modi-Netanyahu Deal: $53M in Israel-India Tech & Investment (2017)

India-Israel Ties Deepen as Modi Prepares Second Visit

As Indian Prime Minister Narendra Modi prepares for his second visit to Israel, scheduled to begin February 25, 2026, the relationship between the two nations has undergone a significant transformation. What was once a discreet partnership has blossomed into a public friendship, marked by increasing cooperation in defense, technology, and investment.

The shift is particularly notable given India’s historical support for the Palestinian cause. However, under Modi’s leadership, India has increasingly aligned itself with Israel, even as the International Criminal Court issued an arrest warrant in late 2024 for Israeli Prime Minister Benjamin Netanyahu over alleged war crimes committed during Israel’s war on Gaza. Indian officials have characterized this pivot as a “pragmatic approach,” emphasizing Israel’s contributions in areas like technology and military expertise.

The foundation for this strengthened relationship was laid during Modi’s first visit to Israel in July 2017. He and then-Prime Minister Benjamin Netanyahu signed agreements totaling $13 million, focusing on collaborative projects in satellite development, agriculture, and water management. These agreements were accompanied by the establishment of a $40 million joint investment fund, signaling a commitment to long-term economic partnership.

Netanyahu, who has described Modi as a “dear friend,” greeted the Indian Prime Minister personally upon his arrival in 2017. At that time, Modi characterized the visit as a “path-breaking journey,” acknowledging the historical significance of being the first Indian Prime Minister to visit Israel. Netanyahu reciprocated, stating that the two leaders had agreed to “break down the remaining walls between India and Israel.”

While the burgeoning relationship offers clear benefits to both countries, analysts suggest it has come at a cost. Concerns have been raised regarding the impact on Palestine and India’s relationship with it, as well as potential implications for India’s standing on the international stage. Despite these concerns, the momentum behind the India-Israel partnership appears strong, with upcoming discussions expected to focus on deepening defense ties, finalizing a free trade agreement, and fostering collaboration in emerging technologies like artificial intelligence and quantum computing.

The evolving dynamic between India and Israel reflects a broader shift in geopolitical alliances and a growing emphasis on pragmatic partnerships based on shared interests. As Modi prepares for his second visit, the focus will be on building upon the progress made in recent years and solidifying a relationship that has fundamentally altered the landscape of India’s foreign policy.