Friday, Feb 27, 2026

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Economic cooperation took center stage in the talks, with Modi confirming that both sides are moving ahead to finalize a mutually beneficial Free Trade Agreement.

Published on: February 27, 2026

Edited on: February 27, 2026

India, Israel Upgrade Ties to Special Strategic Partnership-Indo Arab News

Image courtesy: X @narendramodi

Jerusalem/New Delhi: Indian Prime Minister Narendra Modi and Israeli Prime Minister Benjamin Netanyahu announced the elevation of bilateral relations to a ‘special strategic partnership,’ signaling a new phase in cooperation across defense, trade, technology, and security.

Addressing the media after their talks in Jerusalem, Modi said the two sides had agreed to deepen their long-standing ties and inject fresh momentum into collaboration. He described the partnership as time-tested and rooted in shared interests.

Defence and Security at the Core

Defense cooperation remains a central pillar of the relationship. India and Israel have worked closely for decades in military technology and security. Modi noted that a Defence Memorandum of Understanding signed last year would further strengthen coordination and open new avenues for collaboration.

Both leaders reiterated their firm stand against terrorism. Modi underlined that there can be no justification for terror and stressed that peace and stability in the Middle East are directly linked to India’s security interests. He added that India has consistently supported efforts aimed at advancing a Gaza peace plan.

Expanding Economic and Technology Links

Economic engagement featured prominently in the discussions. Modi said the two countries are working toward concluding a mutually beneficial Free Trade Agreement. A Bilateral Investment Agreement signed last year is expected to encourage greater cross-border investment.

In a significant move, the leaders also agreed to introduce India’s Unified Payments Interface (UPI) system in Israel, facilitating smoother digital transactions. Cooperation in civil nuclear energy and space research is also set to expand.

Trade between the two countries has grown steadily, alongside collaboration in agriculture, water management, innovation, and cybersecurity. The defense sector continues to be a major component of bilateral trade, with Israel supplying key military platforms and systems to India.

People-to-People Bridges

People-to-people ties remain strong, supported by an Indian diaspora of more than 41,000 in Israel. In 2023, the two countries signed a framework agreement to enable the temporary and legal employment of Indian workers in Israel. Since then, around 20,000 Indians have taken up work opportunities through both government and private channels.

Netanyahu praised Modi’s leadership style and described the partnership as a meeting of minds and hearts, expressing confidence that closer government-to-government cooperation would unlock greater benefits for both nations.

Modi’s visit is his second to Israel in nine years and builds on the strategic partnership first formalized during his 2017 trip.

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