India-Israel special strategic partnership: what it means for tech

From strategic partnership to special strategic partnership

On February 26, 2026, during Prime Minister Modi's state visit to Israel, the two countries formally elevated their relationship to a "Special Strategic Partnership for Peace, Innovation and Prosperity." The joint statement is unambiguous: India is no longer positioned as a buyer of Israeli technology. It is now a primary co-development partner — and the institutional frameworks to make that real are being built at speed.

The leaders acknowledged that Indian and Israeli capabilities complement each other — Israel as a global powerhouse of technology and innovation, India as a hub of talent, manufacturing excellence and entrepreneurial energy. This partnership is anchored in India's vision of "Atmanirbhar and Viksit Bharat 2047" and is designed to institutionalise collaboration across government, business, and people-to-people domains.

Critical and emerging technologies

A new initiative on Critical and Emerging Technologies (CET) was launched, led by the National Security Advisors of both countries. This covers AI, cybersecurity, semiconductors, quantum computing, biotechnology, defence platforms, and space exploration. The India-Israel Industrial R&D and Innovation Fund (I4F) — jointly run by India's Department of Science and Technology and the Israel Innovation Authority — was reaffirmed and strengthened with enhanced outreach to industry.

Joint research funding was increased from $1 million to $1.5 million per side under the India-Israel Joint Research Calls (IIJRC). Crucially, both governments agreed to explore "Tech Gateway" mechanisms — structured platforms for collaborative R&D, technology validation, pilot projects, and joint development between Indian and Israeli innovation ecosystems.

AI, cyber, and space

A dedicated MoU on AI cooperation was signed, with commitments to deepen collaboration in AI talent exchange, research institutions, and enterprise innovation. An MoU on advancing education through AI was also signed.

In cybersecurity, the leaders announced a multi-year strategic program, a joint roadmap, and the establishment of an India-Israel Centre of Excellence in Cybersecurity in India — covering capacity building, applied research, security-by-design principles, and regular joint exercises.

In space, both leaders encouraged deeper engagement between Israeli space startups and Indian counterparts through the Israel Space Agency (ISA) and ISRO, including joint ventures and innovation partnerships.

Trade, investment, and connectivity

A bilateral investment agreement was signed in September 2025. Terms of reference for a Free Trade Agreement (FTA) were formalised, with the first negotiating round held in New Delhi — and both leaders tasked teams to "expedite" signing. Additional agreements cover:

• Financial-cyber intelligence sharing — enhancing resilience through exchange of financial-cyber intelligence and joint simulations.
• UPI-MASAV payment linkage — exploring cross-border payment interoperability between India's UPI and Israel's fast payment system.
• Direct air connectivity — expanding direct flights between Tel Aviv and major Indian cities.
• India-Israel Financial Dialogue — a new mechanism for closer financial cooperation.
• Commercial arbitration — MoU between the Indian Council of Arbitration and Israeli Institute of Commercial Arbitration to facilitate smoother dispute resolution.

Defence cooperation

Building on the November 2025 MoU on Defence Cooperation, the leaders outlined a vision and roadmap for future defence collaboration — reinforcing India's position as a co-production and co-development partner for Israeli defence technology under the Make in India framework.

Agriculture, water, and environment

The partnership now includes 35 operational centres of excellence in agriculture across India, with 8 more being jointly operationalised. Over one million Indian farmers have been trained through these centres. Key new developments include:

• India-Israel Innovation Centre for Agriculture (IINCA) — a new joint initiative to drive innovation and research in agricultural productivity.
• 20 joint fellowships for Indian agricultural researchers at the Volcani Agriculture Research Organization.
• Centre of excellence in fisheries and aquaculture — following a Declaration of Intent signed in January 2026.
• Climate cooperation — bilateral consultations on climate action, technology transfer, circular economy, and biodiversity protection.

Education and people-to-people ties

An India-Israel Academic Cooperation Forum (I2I Forum) will be established — a university-led platform for dialogue between academic institutions, policymakers, and stakeholders, convening annually. MoUs were signed between Nalanda University and the Hebrew University of Jerusalem. Both leaders agreed to expand opportunities for Indian professionals in high-skill sectors including data science, AI, and hi-tech, with up to 50,000 additional Indian workers arriving in Israel within the next five years.

What this means for Israeli tech firms

• Institutional entry channels: the Tech Gateway mechanisms, I4F fund, and CET initiative create formal, funded pathways for joint R&D and technology validation — reducing the friction of entering India.
• AI and cyber demand: dedicated MoUs and a cybersecurity centre of excellence signal real budget allocation and procurement intent in India's fastest-growing sectors.
• FTA momentum: a bilateral investment agreement is signed, FTA negotiations are active — reduced tariffs, clearer IP protection, and commercial arbitration frameworks are on the horizon.
• Defence co-production: a clear vision and roadmap for joint manufacturing under India's defence procurement policies.
• Agritech at scale: with 35+ centres of excellence and over a million farmers trained, the infrastructure for scaling Israeli agritech in India is already built.
• Financial connectivity: UPI-MASAV linkage and financial dialogue create the plumbing for cross-border transactions and fintech partnerships.

Bottom line

The elevation to a "special strategic partnership" is backed by 16 signed agreements, concrete funding commitments, and institutional frameworks across every major sector. For Israeli technology companies, this isn't aspirational — it's operational. The policy infrastructure for co-development, market entry, and strategic exits in India is now firmly in place.