by supplychainreport
India and Israel have agreed to expand cooperation in trade, investment, and advanced technologies following talks between Narendra Modi and Benjamin Netanyahu, according to a joint statement issued after the summit.
The leaders emphasized unlocking the full potential of bilateral economic ties and accelerating collaboration in strategic sectors including artificial intelligence, cybersecurity, semiconductors, quantum computing, biotechnology, agriculture, water management, defence systems, and space exploration. The statement said the partnership builds on the complementary strengths of both countries, with Israel recognized as a global innovation hub and India as a center of manufacturing capability, talent, and entrepreneurship.
Both sides welcomed the signing of the India–Israel Bilateral Investment Agreement in September 2025, noting that it is expected to enhance investor confidence, promote two-way investments, and provide a clear framework for investment protection and dispute resolution. They also reaffirmed their commitment to concluding a Free Trade Agreement and directed their negotiating teams to expedite discussions.
The leaders highlighted cooperation in financial cybersecurity, including intelligence sharing and joint simulation exercises between their respective financial cyber response teams. They also agreed to explore linking India’s Unified Payments Interface (UPI) with Israel’s fast payment system to improve cross-border transaction efficiency and strengthen digital economic ties.
Direct air connectivity was identified as essential for expanding trade and business engagement. Both countries expressed support for increasing flight links between Tel Aviv and major Indian cities and encouraged airlines to initiate new direct services.
The summit reviewed progress under the India–Israel Industrial R&D and Innovation Fund, jointly implemented by India’s Department of Science and Technology and the Israel Innovation Authority. The two sides agreed to strengthen implementation mechanisms, enhance industry participation, and expand collaborative research projects. They also decided to increase funding for Joint Research Calls from USD 1 million to USD 1.5 million per country.
Leaders discussed deeper cooperation in artificial intelligence following the signing of a Memorandum of Understanding on AI, with a focus on talent exchange, research partnerships, and industry collaboration. They also reaffirmed ongoing space cooperation between the Indian Space Research Organisation and the Israel Space Agency, encouraging greater industry involvement and innovation partnerships.
Water management and agriculture were also key areas of discussion, including cooperation on water conservation, wastewater treatment and reuse, desalination technologies, utility reforms, and environmental initiatives aimed at improving sustainability and resource efficiency.
The joint statement said the expanded partnership is expected to strengthen economic resilience, boost innovation, and support long-term trade and investment growth between the two countries.
