Beyond the Desert and the Monsoon: India and Israel Forge a “Special Strategic Partnership” for a Tech-Driven Future 

The February 2026 India-Israel Joint Statement unveils a comprehensive “Special Strategic Partnership for Peace, Innovation & Prosperity,” marking a significant evolution of bilateral ties beyond their traditional defence-centric foundation toward a deep, multi-dimensional integration focused on critical and emerging technologies (AI, quantum, space, cyber). The ambitious blueprint seeks to systematically link Israel’s R&D and deep-tech prowess with India’s manufacturing scale, talent pool, and market, as evidenced by institutional mechanisms like the I4F innovation fund, a new Centre of Excellence in Cybersecurity, and revived Free Trade Agreement negotiations. This future-oriented partnership also encompasses tangible people-to-people and economic linkages, including the potential integration of India’s UPI with Israel’s payment system, expanded labour mobility for Indian workers, joint academic forums, and a shared diplomatic approach to regional stability and combating terrorism, positioning the two nations as co-creators in a technology-driven global order.

Beyond the Desert and the Monsoon: India and Israel Forge a “Special Strategic Partnership” for a Tech-Driven Future 

In a move that cements a relationship decades in the making, Indian Prime Minister Narendra Modi and Israeli Prime Minister Benjamin Netanyahu have elevated bilateral ties to a new echelon. Following a state visit to Israel on February 26, 2026, the two leaders unveiled the “Special Strategic Partnership for Peace, Innovation & Prosperity,” a framework that signals a profound shift from a relationship once defined solely by defence ties to one increasingly powered by the engines of technology, trade, and talent. 

The joint statement, spanning 42 detailed points, is less a diplomatic pleasantry and more of a comprehensive blueprint for the next decade of the India-Israel relationship. It arrives at a moment of global realignment, where supply chain resilience, technological sovereignty, and trusted partnerships are paramount. For two nations often described as “innovation powerhouses,” the document is an ambitious attempt to systematically integrate their complementary strengths. 

From Hardware to Software: The New Core of the Partnership 

For much of their 30-plus years of full diplomatic relations, the cornerstone of the India-Israel partnership was defence. While the new statement acknowledges the “significant growth” in this area, including a recent Memorandum of Understanding on Defence Cooperation signed in November 2025, the real thrust of the 2026 declaration is unapologetically techno-commercial. 

The phrase “Critical and Emerging Technology (CET)” appears early and often, underscoring a strategic convergence in a domain that will define 21st-century power. The leaders correctly identify that “Indian and Israeli capabilities complement each other perfectly.” This is more than rhetoric; it’s a geoeconomic reality. Israel, the “Startup Nation,” is a global leader in deep-tech R&D, particularly in AI, quantum computing, and cybersecurity. India, with its vast pool of engineers, its “Unicorn” startup ecosystem, and its ambition to become a global manufacturing hub, provides the scale, market, and manufacturing prowess that Israeli innovations need to reach their full potential. 

The decision to have the National Security Advisors lead a new initiative on CET is significant. It elevates technology cooperation from a matter of commerce to one of national security, recognising that control over AI, semiconductors, and secure communications is now a first-order strategic imperative. This mirrors similar moves by other major powers (like the US-initiated Quad and AUKUS) and places the India-Israel partnership firmly within this new global context. 

The I4F and Beyond: Building a Cross-Pollination Engine 

The joint statement doesn’t just set lofty goals; it seeks to strengthen the nuts-and-bolts mechanisms to achieve them. The renewed focus on the India-Israel Industrial R&D and Innovation Fund (I4F) is a prime example. By agreeing to boost its operational implementation and outreach, both sides are acknowledging that government-to-government MoUs are only as good as the business-to-business partnerships they foster. The I4F is designed to be the cross-pollination engine, funding joint R&D projects that can solve real-world problems and create commercial products. 

Similarly, the increase in funding for the India-Israel Joint Research Calls (IIJRC) from $1 million to $1.5 million each, while seemingly modest, is a vital investment in the foundational layer of the partnership: academia. By encouraging joint research between universities, the two countries are building a network of scientists and researchers who will form the bedrock of future collaboration. The elevation of the Joint Commission on Science and Technology to the ministerial level is another sign that this is no longer a backwater bureaucratic function but a top-tier political priority. 

The Space and Cyber Frontier 

Two specific areas highlighted in the statement—space and cybersecurity—warrant particular attention. In space, the collaboration between ISRO and ISA is moving beyond traditional satellite launches. The explicit mention of encouraging “Israeli space-based start-ups and companies to engage more deeply with their Indian counterparts” points to a future where private-sector dynamism meets government-backed ambition. Imagine Israeli startups developing miniaturised satellite payloads or advanced propulsion systems, manufactured and launched in and by India, for the global market. 

In cybersecurity, the partnership is becoming deeply institutionalised. The signing of a Letter of Intent for an India-Israel Centre of Excellence in Cybersecurity in India is a landmark development. This is intended to be a physical hub for human capacity building, applied research, and joint exercises. In a world where cyber threats are borderless and increasingly sophisticated, such a centre allows both nations to pool their defensive (and potentially offensive) capabilities and best practices. The commitment to “Security by Design” principles is particularly forward-looking, aiming to embed cybersecurity into products and systems from the very beginning of the development lifecycle, not as an afterthought. 

Trade, Finance, and the Great Unlocking 

While technology grabs the headlines, the statement is equally focused on the plumbing of the economic relationship. The mention of the Bilateral Investment Agreement signed in September 2025 and the revived negotiations for a Free Trade Agreement (FTA) are critical. An FTA has been a long-cherished goal, and the signing of the Terms of Reference for its negotiation suggests a genuine political will to overcome past hurdles. Such an agreement would dramatically lower barriers, integrating the two economies more deeply. 

In a fascinating development, the leaders have explicitly linked India’s fintech revolution with Israel’s financial system. The exploration of linking India’s Unified Payments Interface (UPI) with Israel’s fast payment system is a move with far-reaching implications. It would make cross-border transactions between the two countries instantaneous, transparent, and cheap, a boon for businesses, tourists, and the thousands of Indian workers in Israel. This is a tangible example of India exporting its world-class digital public infrastructure. 

The financial collaboration extends to the cyber domain, with a strategic partnership focused on protecting the financial ecosystem—a recognition that as digital payments grow, so too does the attack surface for malicious actors. 

The Human Element: Workers, Students, and Tourists 

Amidst the high-tech deals and strategic frameworks, the joint statement pays significant attention to the human dimension of the partnership. 

The section on Indian workers in Israel is notably detailed. The expansion of labour agreements to cover the commerce, manufacturing, and restaurant sectors, alongside the construction and caregiving sectors already covered, opens up significant new opportunities for skilled and semi-skilled Indian professionals. The target of up to 50,000 additional Indian workers over five years is substantial. But the text goes beyond mere numbers, emphasising the need to ensure their “safety, security, and legal rights” and to create pathways for high-skill professionals in data science and AI. This reflects a mature partnership that values the dignity and contribution of its workers. 

Furthermore, the focus on education—with new MoUs between Nalanda University and Hebrew University, and a specific agreement on using AI in education—aims to build a pipeline of young talent that is naturally comfortable with India-Israel collaboration. The establishment of the India-Israel Academic Cooperation Forum (I2I Forum) creates a permanent platform for universities to set their own collaborative agenda, fostering people-to-people ties at the highest intellectual levels. 

A Political and Regional Tightrope 

No analysis of the India-Israel relationship is complete without acknowledging the complex geopolitical landscape. The joint statement’s section on “Combating Terror, Promoting Peace” is carefully worded. It strongly condemns specific terror attacks—the October 7, 2023, attack on Israel, and attacks in Pahalgam and near the Red Fort in India—demonstrating a shared, visceral understanding of the threat of cross-border terrorism. 

However, the language on the wider regional conflict is more nuanced. While expressing unwavering support for Israel’s security, the statement also welcomes US President Donald Trump’s “Comprehensive Plan to End the Gaza Conflict” and underlines “the need for the establishment of a just and durable peace… through dialogue and mutual understanding.” This reflects India’s long-standing position in favour of a negotiated two-state solution, a stance it must balance with its deepening strategic ties with Israel. India’s ability to maintain this balance while participating in multilateral frameworks like the India-Middle East-Europe Economic Corridor (IMEC) —which explicitly includes Israel and aims to promote regional connectivity and stability—will be a key test of its diplomatic dexterity. 

Conclusion: A Partnership of Co-Creation 

The 2026 India-Israel Joint Statement is more than just a summary of signed MoUs; it is a vision statement for a 21st-century partnership. It recognises that in a world of poly-crises and technological disruption, the old models of buyer-seller relationships are insufficient. The future belongs to “co-creation.” 

By weaving together threads of defence, technology, trade, finance, academia, and labour, India and Israel are attempting to build a truly multi-dimensional relationship. It is a partnership where Israeli innovation can find Indian scale, where Indian talent can find Israeli mentorship, and where two ancient civilizations can collaborate to build a future defined by “creativity, technology, collaboration, and shared success.” The coming years will reveal whether the ambitious architecture outlined in this statement can be fully realised, but the foundation has never been stronger.