India and Israel to discuss laser defense collaboration

Indian Prime Minister Narendra Modi arrives in Israel today for a two-day visit, his first trip to Israel since 2017, during which he will hold discussions with Israeli Prime Minister Benjamin Netanyahu and address the Knesset. On the agenda, are defense cooperation, trade relations and the transfer of technological knowhow to India.

Among other things, reports in India say that a central theme in the discussions will be air defense, as part of which, joint development in the ballistic missile defense sector is on the agenda, including laser defense. At the same time, Modi and Netanyahu, according to reports in India, may sign a memorandum of understanding (MoU) to deepen defense cooperation.

Also recently reported by “Forbes India,” the amount of deals closed by the two countries since the beginning of 2026 is a whopping $8.6 billion. In addition to Israel’s defense exports to India, this amount includes production by subsidiaries of Israeli defense companies in India, and joint ventures of Israeli companies in India with local companies.

The biggest customer of Israeli defense products

Between 2020 and 2024, India procured 34% of Israeli defense exports, according to data from the Stockholm International Peace Research Institute (SIPRI). Figures from the Ministry of Defense International Defense Cooperation Directorate (SIBAT) show that total arms sales by Israel to India during this period amounted to about $20.5 billion.

The ties between the countries go beyond direct procurement deals, as each of the major Israeli defense companies currently has Indian subsidiaries and collaborations with local industry on the subcontinent. These moves are intended to align Israeli activity with the “Make in India” and “Self Reliance” programs led by Modi with the aim of strengthening his country’s productive independence.

SIBAT head, Brig. Gen. (Res.) Yair Kulas, tells Globes about the trends in defense trade with India. “In 2012, we exported $300 million, we rose to $700 million in 2013 and to $1 billion in 2014,” says the head of SIBAT. “The big jump occurred in 2017 with the sale of Barak systems, which led to a jump to about $3.4 billion. After that, there was a consistent decline to $880 million in 2023, and again a growth trend. “In 2024, we sold about $1.1 billion, and in 2025, although the data has not yet been fully processed, it is more than $1.5 billion.”

“There is a desire to expand economic relations between the countries, beyond defense,” explains Dr. Oshrit Birvadker a senior fellow at the Jerusalem Institute for Strategy and Security and CEO and founder of Indivade, which exports Israeli innovation to Asian markets.

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She adds, “The visit marks a shift from viewing the relationship as ‘defense-only’ to something broader, even if the regional security equation is changing. The aim is to increase the other aspects of the relationship. From the Indians’ perspective, the whole idea is that there will be a dialogue with a manufacturing company in any field only if it is willing to manufacture in India. They are looking into various incentives in diverse industries to attract companies.”

Birvadker’s take is backed up by Modi’s schedule, which includes an event in Jerusalem in which advanced Israeli technology companies will participate. The Indians want to be in a leading position, among other things, in AI and quantum computing, and seek to identify Israeli companies that can enrich them with such technologies.

50% jump in Israel’s exports to India

The volume of trade between the countries was about $5 billion in 2025 (goods, services, and diamonds), while Israeli exports to India have grown by 50% in the past five years. These figures mean India is Israel’s second largest trading partner in Asia. As a result, a delegation led by the head of the Foreign Trade Administration at the Ministry of Economy and Industry left for New Delhi about a week ago, for technical and substantive discussions on establishing a trade agreement between the countries.

On the one hand, most goods entering Israel from India are already completely exempt from customs duties, and Israel’s main strength is in the software and services industries, which are also completely exempt from customs duties. On the other hand, if the agreement includes regulatory relief for the absorption of workers from India who will fill the shortages in certain sectors, then this will be major news. Furthermore, if the agreement includes mutual investments and more upgraded defense trade, then it will bring significant added value.

Dr. Lauren Dagan Amos, a researcher on India’s foreign and security policy at Bar Ilan University and a member of the Dvorah Forum for women in foreign and defense policy, says that the visit is seen as important, continuing the strengthening of ties between the countries. “The main aims are to anchor the relations between India and Israel as strategic, a very big change that is set aside only for countries that are special and important to India. There is also a desire to remove obstacles such as local production (Make in India), so that Israeli industries, not just defense industries, can increasingly enter the Indian market. There is also a desire for Indian elements to be more influential in the Israeli market.”

On the way to a broader regional alliance?

Israeli Ambassador to India Reuven Ezer posted on social media that relations between the countries will advance significantly as a result of the visit. According to him, in order to deal with the threats facing the world, Israel and India will deepen security ties based on the validation of agreements between them, which will allow them to engage in more sensitive projects and develop joint technological solutions.

Dealing with those security challenges is connected to the “Six Alliances” that Prime Minister Netanyahu discussed a few days ago, and includes Israel, India, Greece, Cyprus, an Arab country and an African country. Although he did not specify this, the UAE is thought to be the significant Arab factor in the six, especially due to Saudi Arabia’s renewed rapprochement with the Muslim Brotherhood axis and its close relations with Pakistan. The leading African country may be Ethiopia, which Modi visited about two months ago and which President Isaac Herzog will visit this week.

Herzog’s visit follows an unusual visit by Turkish President Recep Tayyip Erdogan to Addis Ababa. Turkey is deeply concerned that Ethiopia, the world’s most populous landlocked country, will join Israel in recognizing Somaliland’s independence to benefit from access to the sea.

Published by Globes, Israel business news – en.globes.co.il – on February 25, 2026.

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