Israel - India Business Guide | 2025

T he ongoing repercussions of the recent war in Israel have left a significant impact on the country’s economy, particularly in the labor market. With a severe shortage of workers in key industries such as construction, agriculture, and healthcare, Israel has increasingly turned to India as a vital source of skilled and unskilled labor. This strategic move aims to stabilize economic activity and ensure continuity in essential sectors. The Labor Shortage Crisis The war led to widespread disruptions in the labor market. Many foreign workers, particularly from Gaza and the West Bank, were unable to return to their jobs due to security concerns and border restrictions. Additionally, the mobilization of tens of thousands of Israeli reservists further exacerbated workforce shortages in crucial industries. As a result, the construction sector faced delays in infrastructure projects, the agricultural sector suffered from reduced harvest capacity, and healthcare facilities experienced increased pressure due to staffing shortages. India Becomes Key Workforce Provider for Israel amid Post-War Labor Shortages Bilateral agreements pave the way for thousands of Indian workers to fill critical labor gaps in Israel’s economy India: A Strategic Partner India, with its vast labor pool and skilled workforce, has emerged as a key partner for Israel in addressing its labor deficit. Israel has expedited agreements with the Indian government to facilitate the arrival of thousands of workers under structured employment contracts. These agreements ensure fair wages, safe working conditions, and streamlined visa processes. 2025 < Business Guide < Israel-India Indian Workers to Israel < Human Resources < 53