Israel - India Business Guide | 2025

T he Israeli high-tech sector has long been a cornerstone of the country’s economy, driving innovation, global collaboration, and economic growth. However, the past year has presented unprecedented challenges, particularly in the wake of the conflict that erupted on October 7 , 2023 . Despite these adversities, Israel’s technology ecosystem has demonstrated remarkable resilience, maintaining its status as a global leader in innovation and investment. This article delves into the key developments in Israeli high-tech over the past year, highlighting its strengths, investment trends, employment dynamics, and growing international partnerships, particularly with India. Investment Trends: Stability Amid Global Uncertainty Over the past year, the Israeli high-tech sector has continued to attract substantial investments, defying expectations of a downturn. According to data from the Israel Innovation Authority, Israeli technology companies raised approximately US$ 9 billion between October 7 , 2023 , and October 6 , 2024 . This investment level aligns with annual fundraising figures since 2017 , barring the peak years of 2020 - 2022 , that saw a surge in capital inflows due to global economic trends. A significant portion of these investments - nearly 60 % -came from funding rounds exceedingUS$ 50 , underscoring the continued confidence of investors in Israeli scale-ups andmature startups. The cybersecurity sector emerged as a standout performer, attracting 29 % of total investments during this period. This sectoral strength reflects Israel’s global leadership in cybersecurity, a critical field amid increasing geopolitical and technological threats. Employment Dynamics: Sustaining a Robust Workforce Despite the challenging macroeconomic and security environment, the Israeli high-tech labor market has remained stable. High-tech employment continues to account for approximately 11 %of Israel’s total workforce. Notably, since October 2023 , the sector has seen a 3 . 8 % increase in employment, amounting to the addition of roughly 25 , 000 jobs. This growth has been primarily concentrated in research and development (R&D) roles, where demand remains strong. Conversely, non-R&D positions have seen some contraction, reflecting shifts in hiring priorities. Nevertheless, the sector’s ability to sustain and even expand its workforce during a tumultuous period speaks volumes about its resilience and continued relevance on the global stage. Strengthening Global Ties: The Israel-India High-Tech Partnership One of the most promising avenues for Israeli high-tech expansion lies in its deepening collaboration with India. Israel’s Innovation Engine: Staying ahead in a shifting Global Tech Landscape Despite recent challenges, Israel’s technology ecosystem remains a global leader in innovation and investment, as its growing partnership with India opens new frontiers for expansion Israel-India > Business Guide > 2025 44 > Business Services > The Israeli High-Tech