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India and Israel Forge "Special Strategic Partnership" as Modi Receives Knesset's Highest Honor

  • InduQin
  • Feb 27
  • 6 min read
Modi became the first Indian PM to address Israel’s Knesset, receiving its highest honor and elevating ties to a “Special Strategic Partnership.” India’s UPI expands to Israel, with a Free Trade Agreement and $8–10 billion defense deals underway. Cooperation includes missile defense, drones, 50,000 Indian workers, and 35 agricultural centers training over one million farmers.


• Modi becomes first Indian PM to address Knesset and receive its highest honor, the "Speaker of the Knesset Medal," elevating ties to a "Special Strategic Partnership."

• India's UPI extended to Israel; nations pursuing Free Trade Agreement with defense deals worth $8-10 billion expected, covering advanced missile defense and drone warfare systems.

• 50,000 additional Indian workers to arrive over five years; 35 agricultural excellence centers established, training over one million farmers in innovation and water management.

 

 

India and Israel stand today as proud partners, bound by shared values, innovation, and a vision for a stronger future. Prime Minister Narendra Modi’s second visit to Israel since 2014 marks not just a diplomatic milestone, but a powerful symbol of the deepening friendship between New Delhi and Jerusalem and elevation of ties to a "Special Strategic Partnership" encompassing defense, technology, and economic cooperation.


The warm front-page welcome in The Jerusalem Post — “Welcome Modi,” with “Namaste” and “Shalom” shining together — reflects more than ceremony. It represents two ancient civilizations embracing a modern partnership built on trust, respect, and opportunity. Headlines celebrating “New Delhi’s burgeoning partnership with Jerusalem” capture the spirit of progress that defines this relationship.


This historic visit carries special significance, as Prime Minister Modi becomes the first Indian Prime Minister to address the Knesset. It is a moment of pride for India and a testament to how far the relationship has come — from cordial ties to a dynamic strategic partnership.


As India and Israel move forward together, their collaboration in innovation, technology, defense, agriculture, and beyond continues to inspire. “Namaste” and “Shalom” are no longer just greetings — they are expressions of a powerful alliance shaping a brighter, more secure, and more prosperous future for both nations.


Historic Parliamentary Address and Personal Bonds


During an emotional address to the Knesset on Wednesday, Modi became the first Indian Prime Minister to receive the "Speaker of the Knesset Medal," the parliament's highest honor. The recognition celebrates his personal leadership in strengthening strategic relations between the two nations.


"I accept it with humility and gratitude," Modi posted on social media. "This honour is not a tribute to an individual, but to the enduring friendship between India and Israel. It reflects the shared values that guide our two nations."


Israeli Prime Minister Benjamin Netanyahu, visibly moved, lavished praise on his Indian counterpart before a standing-room audience of lawmakers. "Prime ministers and heads of state come to the Knesset and it's always an exciting moment for all of us. But my dear friend Narendra, I'm especially moved by your visit," Netanyahu said. "You are more than a friend. You are a brother."


The personal rapport between the two leaders was unmistakable, marked by extended embraces and repeated standing ovations. Netanyahu referenced what he termed the "Modi hug" they shared at the airport, joking that he wanted to return an embrace from every Knesset member to represent the warmth characterizing their nations' relationship.


UPI Goes Global: Digital Payment Revolution Reaches Israel


One of the visit's most tangible outcomes was the extension of India's Unified Payments Interface (UPI) to Israel, representing a significant milestone in digital finance collaboration. The agreement will enable seamless digital transactions for businesses and consumers in both countries, expanding India's fintech influence internationally while deepening commercial ties.


"I am happy that an agreement has been signed for the use of UPI in Israel," Modi announced at a joint press briefing. Netanyahu praised the efficiency of Modi's administration, noting, "What you can do with one minister and one ambassador... The meeting of minds and hearts that we have had here will also continue in this remarkable G2G that is long overdue."


Free Trade Agreement and Economic Expansion


Both nations committed to expediting negotiations toward a Free Trade Agreement, with Modi expressing optimism about concluding a mutually beneficial deal in the near term. The signing of Terms of Reference for FTA negotiations and the completion of the first negotiating round in New Delhi signal serious momentum.


The visit also saw the conclusion of numerous agreements spanning cultural exchange, artificial intelligence, cybersecurity, geophysical exploration, fisheries, and the joint development of India's National Maritime Heritage Complex at Lothal. Notably, a Letter of Intent was signed to establish a Cyber Centre of Excellence, while regulatory cooperation was formalized between India's International Financial Services Centres Authority and the Israel Securities Authority.


Defense and Emerging Technology Collaboration


India and Israel are poised to finalize defense deals potentially worth $8-10 billion during Prime Minister Modi's Jerusalem visit, building on India's position as Israel's largest defense customer (34% of sales, 2020-2024, totaling $20.5 billion).


Following the 2023-2025 Middle East War and the May 2025 India-Pakistan conflict, which exposed vulnerabilities in drone, missile, and cyber warfare, India seeks comprehensive Israeli air defense systems. Expected agreements cover Israel's multi-layered missile defense: IAI's Arrow system, Rafael's David's Sling, Iron Dome, and Iron Beam laser defense—addressing threats from long-range ballistic missiles to short-range rockets.


Major drone warfare deals are anticipated, particularly Elbit's Hermes 900. Offensive capabilities include Rafael's SPICE 1000 guidance kits, Elbit's Rampage missiles, Ice Breaker naval cruise missiles, and IAI's supersonic Air LORA missiles. India particularly wants long-range strike capabilities similar to Israel's June 2025 Iran operation.


Defense cooperation has evolved since 2012-2017's exponential growth (peaking at $3.4 billion with the Barak system sale). After cooling during 2017-2023 due to Modi's "Made in India" policy, Israeli companies established Indian subsidiaries by 2024, creating joint industrial partnerships.


Beyond defense hardware, the visit will launch cyber, artificial intelligence, and quantum technology ventures, marking a comprehensive strategic partnership expected to shatter previous records in 2026.


Agriculture, Water Management, and Innovation Centers


Recognizing agriculture's critical role in sustainable development, the leaders welcomed the establishment of the India-Israel Innovation Centre for Agriculture and the launch of 20 Joint Fellowships for Agricultural Research at the Volcani Agriculture Research Organization. Currently, 35 agricultural centers of excellence operate across India, with eight more in development—collectively training over one million Indian farmers.


"Together, we will develop future-ready farming solutions. We will work on creating villages of excellence," Modi stated, emphasizing collaboration on water conservation, desalination, and advanced wastewater treatment technologies.


Workforce Mobility and People-to-People Ties


Both leaders agreed to facilitate the arrival of up to 50,000 additional Indian workers in Israel over the next five years, expanding beyond construction and caregiving into high-skill sectors such as data science, AI, and technology. Implementation Protocols were signed covering commerce, services, manufacturing, and restaurant sectors, while measures to ensure worker safety, security, and legal rights were emphasized.


The cultural dimension received attention as well, with Israel's Ministry of Culture and Sports committed to deepening cinema cooperation through creator exchanges and joint film productions.


Unequivocal Stand Against Terrorism


Throughout the visit, both leaders maintained an unambiguous stance against terrorism. "India and Israel are clear that there is no place for terrorism in the world. Terrorism cannot be accepted in any form," Modi declared. "We will continue to fight against terrorism and its supporters."


Netanyahu thanked Modi for being among the first world leaders to condemn the October 7, 2023 Hamas attack that killed approximately 1,200 Israelis and resulted in about 250 kidnappings. The joint statement also condemned the terror attack on Indian tourists at Pahalgam in Jammu & Kashmir in April 2025 and the incident near Red Fort, New Delhi, in November 2025.


Regarding the Gaza conflict, Modi expressed support for peace efforts: "A path to peace has been created through the Gaza Peace Plan; India has fully supported these efforts." He reiterated that "India's stance is clear: humanity must never become a victim of conflict," while acknowledging that India's security interests are inextricably linked to peace and stability in the Middle East.


Regional Connectivity and Multilateral Frameworks


The leaders reaffirmed their commitment to advancing the I2U2 quadrilateral partnership and discussed the India-Middle East-Europe Economic Corridor (IMEC), expressing intent to promote regional connectivity, stability, and shared prosperity. Direct air connectivity emerged as a priority, with both leaders encouraging Indian and Israeli airlines to establish flight operations between Tel Aviv and major Indian cities.


A Rare Distinction


Modi's visit holds additional significance given his unique standing as one of the few world leaders to receive top civilian honors from both Israel and Palestine. In 2018, he was conferred the Grand Collar of the State of Palestine, the highest Palestinian honor for foreign leaders, demonstrating India's historically balanced approach to the region.


Looking Ahead


The visit marks a defining moment in bilateral relations between nations that only established full diplomatic ties in 1992. Modi's embrace of Israel represents a notable shift in Indian foreign policy, which has traditionally supported Palestinian causes.


As the Prime Minister told the Knesset: "I bring with me greetings of 1.4 billion Indians and a message of friendship, respect and partnership. Let us ensure that the friendship between India and Israel remains a source of strength in an uncertain world."


With institutional mechanisms now established across government-to-government, business-to-business, and people-to-people domains, the "Special Strategic Partnership" is positioned to deliver sustained collaboration and meaningful impact for years to come. Netanyahu's characterization of India as possessing "talent, manufacturing excellence and entrepreneurial energy" complementing Israel's "technology and innovation" powerhouse status captures the essence of what both leaders envision: a transformative alliance built on complementary strengths and shared democratic values.

 

 

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