India, Israel deepen defence and tech ties as Modi backs Gaza peace plan

India and Israel on Thursday elevated their relationship to a ‘special strategic partnership’ and agreed to work towards concluding a “mutually beneficial” free trade agreement, following talks between Prime Minister Narendra Modi and his Israeli counterpart Benjamin Netanyahu.

The two sides signed multiple agreements to expand cooperation across trade, agriculture, energy, cyberspace and digital payments, while also outlining plans to strengthen defence ties through joint development, joint production and transfer of technology.

In his media statement, Modi said India’s security interests are linked to peace and stability in the Middle East and reiterated support for the Gaza Peace Initiative.

“India’s stance is clear: humanity must never become a victim of conflict. A path to peace has been created through the Gaza Peace Plan. India has fully supported these efforts,” he said.

“In the future as well, we will continue dialogue and cooperation with all countries,” he added.

Modi arrived in Israel on Wednesday for a two-day visit, his second visit to the country in nine years.

Announcing the elevation of ties, the prime minister said the decision reflects the depth of bilateral relations.

“Today, we have taken the historic decision to elevate our time-tested partnership to the status of a ‘Special Strategic Partnership’,” he said.

“Our relationship is founded on the strong bedrock of deep trust, shared democratic values, and human sensitivities. Our bond has stood the test of every trial of time.”

The two countries also agreed to expand cooperation in critical and emerging technologies, including artificial intelligence, quantum and critical minerals, under a new partnership framework.

“I am pleased that an agreement has been reached for the use of UPI in Israel,” Modi said.

On defence, both sides agreed to pursue joint development and production of military hardware, alongside transfer of technologies. They also decided to cooperate in “horizon scanning” to enhance India’s strategic capabilities through joint research, capacity building and AI-driven tools aimed at strengthening strategic foresight, risk assessment and technology planning.

Modi reiterated that both countries share a common position on terrorism.

“India and Israel are completely clear that there is no place for terrorism in the world. In any form, in any expression, terrorism cannot be accepted,” he said.

“We have stood shoulder-to-shoulder in opposing terrorism and its supporters, and we will continue to do so.”

The discussions also covered the implementation of the India-Middle East-Europe Economic Corridor (IMEC) and cooperation under the I2U2 framework involving India, Israel, the UAE and the United States.

India said it would continue to consult and cooperate with partners on efforts to establish peace in West Asia.

“The Gaza peace plan has opened a pathway to peace, and India has extended its full support to these efforts,” Modi said during a joint press briefing.

Separately, Israel agreed to allow 50,000 additional Indian workers into the country over the next five years, particularly in manufacturing sectors, according to an Indian foreign ministry statement.

Modi’s visit comes at a time when the United States has deployed a significant naval presence near Iran’s coast amid tensions over Tehran’s nuclear programme.