Israel - India Business Guide | 2025

The IMEC Project and its Ramifications One of the strategic projects currently being promoted is the IMEC (India-Middle East-Europe Economic Corridor) project. The aimof the project is to create an economic corridor that will connect India with theMiddle East and Europe through marine and land transportation infrastructure, thereby overcoming significant challenges in trade and transportation in the region, including trade delays, high costs, and threats to freedom of navigation – such as those posed by the Houthis in the Red Sea. Israel can serve as a central "gateway" to this corridor, thanks to its strategic geographic location in the Middle East. The planned project could strengthen ties between Israel and Middle Eastern countries and lead to the creation of new business opportunities in various fields. It could also serve as a catalyst for economic growth for Israel, both in terms of regional connections and technological collaborations that could lead to broader global influence. Moreover, India focuses primarily on promoting its own economic and security interests, and Israel is seen as an important partner in this regard. Cooperation in the fields of high-tech, security, cyber, and ag-tech provides significant strategic value for India. The focus in India is on strengthening the local economy and addressing internal challenges, not on political sanctions or boycotts. Therefore, India seeks to establish close ties with Israel due to the many advantages it sees in cooperation, particularly in the security and technological sectors. Strengthening Relations between Israel & India Relations between Israel and India have strengthened significantly in recent decades, especially since the 1990 s, with the renewal of diplomatic ties after decades of covert relations. These ties are developing, based on ongoing dialogues and cooperation in security and technological fields. The visits of Israel’s Prime Minister Benjamin Netanyahu to India and meetings with Indian PrimeMinister NarendraModi are signs of the growing economic and strategic relationship between the two countries. During PMNetanyahu's most recent visit to India, in 2018 , both sides renewed their commitment to cooperation in areas such as cyber, agriculture, and new technologies. The delegation to India was primarily economic and consisted of about 100 senior officials, businesspeople, and industry leaders. It also included senior representation from the Israeli industry, among them the Director General of the Ministry of Economy and Industry, the President of theManufacturers’ Association, the Chairman of the Israel Export Institute and many other dignitaries. The delegation had hundreds of business meetings with decision-makers, heads of organizations and key figures in India industry. In addition, the Foreign Trade Administration in theMinistry of Economy and Industry and the Israel Export Institute organized a series of business seminars and roundtables with the participation of Israeli and Indian businesspeople, aimed at creating collaborative opportunities and promoting long-term business relationships. Key quantitative data points on trade between Israel and India: 1. Annual Trade Volume: Trade between Israel and India stands at approximately $ 4 . 7 billion annually (excluding diamond trade), with a growth of about 90 % over the last decade. 2. Global Trade Ranking: India is Israel's 6 th largest trading partner, and 5 th largest (including diamonds). For India, Israel is a major export destination, representing around 3 % of India's total exports. 3. Israeli Exports to India: India is the 6 th largest destination for Israeli exports, totaling $ 3 billion, including software services, electronic components, medical devices, advanced agricultural equipment and fertilizers. 4. Business Services Trade: About a third of the trade between the two countries is in business services, highlighting significant collaborations in technology and consulting services. 5. Technology Exports: Israel has seen notable growth in technology exports to India, especially in fields such as precision agriculture, water technologies, cleantech, and security. Both sides renewed their commitment to cooperation in areas such as cyber, agriculture, and new technologies. The Israeli delegation to India 69