India–Israel Trade: What India Import from Israel?

India stands as Israel’s second-largest trading partner in Asia and its 7th largest globally. Over the past 3 decades, bilateral trade has expanded significantly—from a modest US$ 200 million in 1992 (primarily centered around diamonds) to US$ 6.53 billion in FY24, excluding defence trade.

While diamonds and chemicals once dominated the trade basket, recent years have witnessed a marked diversification into high-value sectors such as electronics, medical devices, high-tech systems, and communication technologies.

India’s Exports to Israel

In FY24, India’s exports to Israel totalled US$ 4.53 billion, comprising 3,066 commodities. Major export items included:

• Petroleum products: US$ 2.32 billion
• Gems and jewellery: US$ 791.93 million
• Engineering goods: US$ 472.13 million
• Electronic goods: US$ 146.98 million
• Organic and inorganic chemicals: US$ 130.44 million

During the April–October 2024 period alone, exports stood at US$ 1.1 billion, led by:

• Gems and jewelry: US$ 351.56 million
• Engineering goods: US$ 241.02 million
• Electronic goods: US$ 97.50 million
• Chemicals: US$ 64.68 million

India’s export basket reflects growing engagement in sectors beyond traditional trade items.

India’s Imports from Israel

In FY24, India imported goods worth US$ 2 billion from Israel, spanning 1,153 commodities. Key import categories included:

• Electrical machinery and equipment: US$ 212.65 million
• Precious and semi-precious stones: US$ 174.42 million
• Arms and ammunition: US$ 73.40 million
• Fertilizers: US$ 63.34 million

Between April–October 2024, imports stood at US$ 883.05 million, reflecting the growing importance of Israeli high-tech and defence-related products to India’s economy.

Investment and Technological Collaboration

Beyond trade, India has emerged as a strategic destination for Israeli investment. As of September 2024, FDI inflows from Israel reached US$ 326.75 million. Nearly 300 Israeli companies are active in India, investing in sectors like pharmaceuticals, clean technology, and water management. Prominent investors include:

• Teva Pharmaceuticals (pharma)
• Ecoppia (clean energy)
• Naa’n Dan Jain (irrigation and agri-tech)

By 2021, total Israeli investment in Indian projects stood at approximately US$ 270 million, reflecting deepening business linkages in emerging industries and the startup ecosystem.

Also Read: India's Economic Might Grows, But Per Capita Income Gap Looms

Defence and Strategic Cooperation

India is Israel’s largest defence customer, while Israel ranks as India’s second-largest defence supplier after Russia. This partnership has grown significantly over the past decade, encompassing a broad range of sectors, including:

• Military technology and arms supply
• Cybersecurity and surveillance
• Homeland security
• Joint innovation and R&D in defence

Strategic cooperation has become a pillar of bilateral relations, with frequent high-level dialogues and collaborative initiatives strengthening mutual trust and capabilities.

Looking Ahead

India and Israel share a robust strategic partnership, underpinned by strong trade, defence cooperation, and innovation-driven investments. As both nations explore the potential of a Free Trade Agreement (FTA), the scope for deeper engagement across technology, energy, agriculture, and digital sectors is set to expand. Strengthening this alliance will not only elevate bilateral trade but also anchor long-term geopolitical and economic collaboration.

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